Can you share insights on how to develop a payment processing company?

[l0ner]

It seems you are an optimistic person, because you should really consider every advises everybody gave you whether negative or positive.

You asking how to start a payment processing company on an in internet marketing forum shows that you probably should not be starting a payment processing company. Hey but not to discourage you (who knows you might be an unknown rich guy), you should go out there setup a real company, hire crazy developers, security engineers, hire some experienced risk and fraud analysts (very important read about Igor Algorithm developed by paypal. It was named after a russian fraudster that stole over $100000 from them) , get good sales and marketing team, a really nice lawyer and some financial guys and money for licenses, regulations, partnerships, PCI certification. After this you can setup a meeting with some of the big banks in your region.

If you have a lot of cash to setup all these then don't be discouraged by anybody and go on with your plan. If you really don't have the funds and you are just looking for a unique cool method to run and make money on bhw, you can look into developing a successful saas platform but please don't get overly optimistic and try to prove people wrong on bhw.

 

[GenesisOne]

Ask Elon Musk

 

[jafm0108]

I came to it through https://en.wikipedia.org/wiki/Gravity_Payments . They have been making decent money over a 17 year time period, which proves that the concept works well.

Why is this kind of information so hard to find? I've spent countless hours trying to learn more about regulations and what exactly prevents me from doing something like Gravity, and still barely understand. For the Gravity Payments example, how did Dan get started? He seemingly came from nowhere with no money. Could I try to get started and hope the government doesn't shut me down?

 

[Julian Brockmann]

Why is this kind of information so hard to find? I've spent countless hours trying to learn more about regulations and what exactly prevents me from doing something like Gravity, and still barely understand. For the Gravity Payments example, how did Dan get started? He seemingly came from nowhere with no money. Could I try to get started and hope the government doesn't shut me down?

Nice to see another optimist. Which sites did you read?

 

[lotsofmoney]

Find paying clients first and then sign them up on less commission than their current provider.

 

[Julian Brockmann]

Find paying clients first and then sign them up on less commission than their current provider.

For that the service has to already be running. Competing on price is a bad idea.

 

[jafm0108]

Nice to see another optimist. Which sites did you read?

Haha likewise. Difficult to list, but mainly whatever pops up on Google, existing processors' terms and whatever other company documents I can find, and some seemingly never ending, usually unrelated law. If you are interested, I'd recommend reselling someone else's. That's most companies anyways. I have a high risk merchant account through some agent I found through another company.

 

[Julian Brockmann]

Haha likewise. Difficult to list, but mainly whatever pops up on Google, existing processors' terms and whatever other company documents I can find, and some seemingly never ending, usually unrelated law. If you are interested, I'd recommend reselling someone else's. That's most companies anyways. I have a high risk merchant account through some agent I found through another company.

I don't understand. Are you talking about buying a payment processing provider?

 

[Jeter07]

Well, first and most important thing is to Research Your Industry and Market. Do market research, which should include an analysis of how many retail businesses are in your area.

Create a Business Plan >> Partner With a Bank >> Contact Equipment Leasing Companies >> Research Wholesale Equipment Sources >> Hire a Sales Team >> Hire a Marketing Team >> Consider American Express.

Important thing to note as well and should not be forgotten : Be prepared to make a capital outlay to become an ISO. If you want to become a registered ISO with Visa/MasterCard, you will need to pay a fee

 

[stbandz]

Why is this kind of information so hard to find? I've spent countless hours trying to learn more about regulations and what exactly prevents me from doing something like Gravity, and still barely understand. For the Gravity Payments example, how did Dan get started? He seemingly came from nowhere with no money. Could I try to get started and hope the government doesn't shut me down?

I think information is hard to find because you’re entering an oligopolistic market. PayPal has 49.71% of the market share. Stripe has the second biggest share with 15.95% according to datanyze. One characteristic of an oligopoly is that there’s a high barrier of entry thus the lack of info surrounding how to get started.