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Starting A Payment Gateway Business / Paypal Clone

by Toon-c
8 replies
Hi,

I'm thinking about starting a payment gateway .. like paypal / payza ..

It will be a local solution ..

My question is, what are the possible legal issues I can face when creating such website ?

What type of company should I start? a bank / a holding company ?

I'm looking to start with accepting payment via different types of local / international credit / debit cards into your webwallet .. and using yhe wallet you can send money to other members or to pay online in websites accepting my payment method ...

So basically no withdrawal options in the begining ..

Any ideas where to start ?


I'm also looking for a framework, a good script that I can start from ..

I looked a bit and I didn't find anything other than
EPay Enterprise - Paypal Clone Payment Processor script

What are your thoughts ? do you have any other scripts in mind ?

Thank you
#business #clone #gateway #payment #paypal #starting
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by Toon-c View Post

    What are your thoughts ?
    I think you need a great deal of legal advice, before doing anything else at all, from a lawyer in your jurisdiction who's very familiar with merchant account services, banking law and so on.

    Originally Posted by Toon-c View Post

    My question is, what are the possible legal issues I can face when creating such website ?
    Absolutely - this needs to be your question. But this is a dreadful place to seek or take legal advice, however well-intentioned it might be when offered. This is a highly specialist area of law, and one in which the regulations can change monthly, and sometimes even weekly (seriously). http://www.warriorforum.com/main-int...al-advice.html

    Originally Posted by Toon-c View Post

    What type of company should I start? a bank / a holding company ?
    Do you have any conception of what's involved, legally and administratively, in starting a "bank"? It varies hugely from country to country, but I don't think it's going to be simple anywhere. You're going to need an enormous amount of up-to-date, specialist legal advice.

    I wouldn't think you're anywhere near looking at software, yet?

    .
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  • Profile picture of the author ilynreal
    Starting a payment getaway is a very hard business model. You should have a lot of employee or workers for that. For taking care of the sites, for handling payments, for attackers and of course legal issue. You will also consider talking to all bank owners.

    I'm not saying you cannot do that, I'm just saying that it is a very complicated business. Look what happened to liberty reserve as my example.

    You are talking about money here, and that is a serious stuff.
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  • Profile picture of the author markgaperl
    This is a great idea and can be very lucrative if done right. Having said that, what kind of investment do you have at hand? Because you re going to need it big time. When you are handling payments, there is no room for error. I am not sure if you hear about the one case when PayPal by mistake made a deposit of $1BN in someone's account. They caught it in time to correct it but imagine you not having the man-power or automation to catch it in time. Here is what I suggest:

    - Do a in-depth analysis of what all you will need to create something like this
    - Hire a lawyer to cover all the legal angles to the tee
    - Look for angel investors who are willing to fund you to this

    Obviously these are high level steps but at least will get you started. There will be many more steps once you start but those will come as you progress.

    good luck!
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  • Profile picture of the author m2coolgo
    I have to agree with Mark! Spend time now to do all the required due diligence to cover all the legal angles and cover your liabilities.
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  • Profile picture of the author Tsnyder
    I mean absolutely no disrespect whatsoever but based on
    the questions you've asked you have ZERO chance of actually
    becoming a payment processer... none... zip... nada.

    I doubt you have the several millions of dollars in unemcumbered assets
    that will be required. You obviously have no knowledge or experience in the
    field. There isn't a bank on this planet that will approve you let alone the federal
    and international regulatory bodies you will have to clear.

    If you start today and work your butt off learning and gaining experience
    you may have a chance at this 10 to 15 years from now.... assuming you
    also accumulate the capital along the way.

    Others may offer you positive encouragement... I'm dealing you straight.
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    If you knew what I know you'd be doing what I do...
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  • Profile picture of the author onegoodman
    My first question would be how much funding do you have, you can't start with a cheap clone of paypal, you need a hell of a budget, unless you have 6 figure budget, i would be really careful going that route.
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  • Profile picture of the author JensSteyaert
    There's only 2 ways this can succeed:
    1. You have a very large budget (as mentioned above)
    2. You live in a very small country and make it local.

    The problem is though that paypal is integrated in so many countries and used by locals that it's very hard to compete with. Very low fees would have to be your main advertising strategy along wiht the same amount of support.
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  • Profile picture of the author KirkMcD
    The last time I looked into starting a money transfer business you needed to have a minimum of 10 million US dollars in cash before you could even start the process.
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