A Multi-Million Dollar Idea-Deep Pockets Needed But Worth It!

A payment processor has to be one of the biggest headache inducing business in the world to run.

Sometimes, there's a reason certain areas are left to the BIG players.

That's a great idea I already thought of when paypal froze my account and stole my money. It would take some money to get going but I'm surprised no one has done it already. There's that site paypalsucks for a reason.

Mike

Maybe you folks are just too young, but it has been tried by a few and none have survived like PayPal. There are a few small ones that the names slip my mind, and there is the Google one that has done ok. Part of the reason that PayPal is so big is that eBay was trying to compete with them and finally just bought them out and closed the one they ran.

Bottom line, PayPal just does a pretty good job. They are a pain in the a$$, but most of the things they do, they do for a reason. I don't care how deep my pockets were, I wouldn't want to try that business for anything. Way too many headaches in my opinion.

I reember when they started, there were no fees. I don't know if they thought they were going to make enough money on the float or if that was just a ploy to get folks to get used to using it. We would get $10 for referring a new user, and no transaction fees. What a deal. My how things have changed. I remember getting my account locked and it took me a week or two to find out the reason. What a headache. Not for me, thank you.

Because managing a company like that is NOT a walk in the park.

First off:

You need to set it all up

• You need money

• You need a staff (You certainly can NOT manage a big payment processing company on your own)

• You need time (Probably lots of time if you don't have any idea of what you're doing.

Anyway, those are the basic things that you need to start
it off.

If you do manage to set it all up...


You'll need to:

• Gain Reputation (This will definitely be difficult. A lot of people are obsessed with paypal & I really don't see how you can topple down a company like that)

• Advertise the company

And, let's say that everything goes smoothly & you manage
to get some clients. You will still need to take care of everything.
A company like that requires a LOT of responsiblity...


All in all, I don't think that it's worth it.

Anyway, it's your call & I really don't want to ruin your plans.
Just giving you a heads up that's all.

Cheers

There is a reason paypal charges the fees they do...they need to make a profit.

There is a reason they freeze accounts...cutting down on fraud.

Hands free residual income? Running a business like that would require huge infrastructure, a grundle of employees, and more work than any business I can think of. Hardly hands free.

Lol, not only to you need gobs of start up capital, staff, and time, you better get a fantastic lawyer and keep them on retainer.

Too much hard work, too many headaches, and too many law suits for me.

Around 2003, my business partner and I scrapped our digital cash efforts. More than five years ago, PayPal was clearly the 800-pound gorilla, and nobody was going to dethrone them.

The conversations with banks were weird. We needed about eight million to get our system up and running. We kept talking to banks and saying "this is our plan, and it's amazingly like PayPal, because that's the best way to do this sort of thing" - and they kept saying "we have a different system under development, it's going to be ready in two years, and it will be awesome because of this stupid feature that will never work and nobody wants it anyway."

I have never heard so many completely retarded approaches to handling digital payments. Every bank had a different one. None of them solved a single problem. In fact, every solution we heard about created brand new problems that people would supposedly accept because it was "the only option."

Um, hello! PayPal?! They're out there right now, not having that problem. Market research much?

God, I could write half a book about the crap banks wanted you to do. I really liked the idea one bank had about fingerprint-scanning cards. Well, gee, that's really cool. What good is it? Nobody else can use my card? Well, it seems to me that I have a PIN. Why do I need this fingerprint scanner card? Oh, and I have to pay for it? (No, I'm not kidding - $200 annual fee.) And put my fingerprints on file with the bank? Yeah... good luck with that.