Validate my Idea: Can I Crack PayPal? Print $$$

[Uroperon]

I have had this idea for months and years now, Please advise if I am just wasting my time thinking about it.

PayPal is not available in all the countries. Let's not mention a specific country for this discussion. And freelancers there cannot receive payments from the clients directly who wants to pay quickly by paypal ONLY. Therefore, loosing a lot of deals and facing hardship daily. Unfortunately, the PayPal issue is mostly due to government poor regulations and I do not see this getting fixed in years to come. But demand of PayPal service is huge, Imagine having Millions of Freelancers who need PayPal but not having it.

I want to offer a solution here: no, selling PayPal accounts will not solve their problem. In the future, the accounts verification will be required and the account might get locked and its done. So, instead, How about I create a company which will receive payments from clients on behalf of the freelancers and our company transfer the funds to the recipient?

There will be many difficulties gaining trust from people as it's a financial transaction and we are acting as a third party service. Also some technical difficulties as well. Here is what I mean for technical problems.
Let's say our company PayPal account receives money from someone, how will a freelancer know that we recieved their payment? How can we validate a payment for an individual? I have noticed that, PayPal generates two different transaction ID for a single transfer.

Example: Client pay us, $10. Client will see this TRX ID in their own PayPal account TRX ID: ABCDEF
We will see a different TRX ID for the same transfer in our own PayPal account: TRX ID: XCVBG

This makes it difficult for us to validate who sent the money and hard to notify the freelancer about it. Because when we will receive transactions in volume, we cannot manually check for each transfer. But I have seen that, if I search our PayPal account with the client TRX ID, the transaction shows up!

How will I make money? Probably: monthly account charge.
If I can solve the technical part and get social trust, it can be a great business opportunity. Please advise me, anything is appreciated.

 

[VinceC]

It will work. Now go make this happen.

 

[Uroperon]

It will work. Now go make this happen.

thanks a lot! I hope I can find some techinal advice as well in this forum.

 

[Muhatrima]

This guy did the same and yells every once in a while or quite regularly "Bitcoin is crypto" on twitter.

 

[randomstrings]

And how you plan to secure the middle account? How you will handle chargeback claims, PayPal is hated for a reason and its not only govt restrictions.

 

[Carlvensky]

What if PayPal holds your funds for 6 months, or restricts your account?

 

[Uroperon]

And how you plan to secure the middle account? How you will handle chargeback claims, PayPal is hated for a reason and its not only govt restrictions.

I was thinking to only receive as "Send money to friends and family", there is no charge back as its not a sale, am I wrong?

 

[Uroperon]

What if PayPal holds your funds for 6 months, or restricts your account?

hmm that's a thing, then we do not transfer that money, again, if we receive money as "Send to friends and family" can it trigger restrictions too? I have both business and personal accounts, receiving a lot of money might trigger a problem, then I need to explain why am I receiving a lot of transactions or money, I must be prepared to give a nice answer to this or they might lock the account, for business transactions: there can be charge back so it is a risk, if I receive as family, there might be no charge back but the account can be flagged in case i receive volume transactions in the future.

 

[NirvanaWolf]

There's already a company doing that. 2checkout. And it's available in almost every country except sanctioned countries.
Even you as a middleman won't be allowed by paypal to process payments for sanctioned countries.
So what different are you planning to do that will make people trust you and not 2checkout?

 

[Uroperon]

There's already a company doing that. 2checkout. And it's available in almost every country except sanctioned countries.
Even you as a middleman won't be allowed by paypal to process payments for sanctioned countries.
So what different are you planning to do that will make people trust you and not 2checkout?

2checkout does that? Just quickly looked at them. Still not sure if they do it. And won't be serving sanctioned countries.

 

[NirvanaWolf]

2checkout does that? Just quickly looked at them. Still not sure if they do it. And won't be serving sanctioned countries.

2checkout processes paypal payments without you owning a paypal account. They use their own paypal to do that. And you get an option to process card payments as well with them.

 

[Uroperon]

2checkout processes paypal payments without you owning a paypal account. They use their own paypal to do that. And you get an option to process card payments as well with them.

Is it like selling a service thing? They probably don't directly accept payment. But you mentioned a good website for me to look into. Appreciate it.

 

[rajiced]

This is what payment processor, payment aggregator or payment gateway companies doing but it requires different license with huge capital to operate based on the country they incorporated

You can't build a business just for paypal alone

 

[Dopious]

This would work very well, it is just like "Invoicery" and other freelance companies that let people send invoices without a company and still make sure taxes and stuff gets paid, with the only difference that you use PayPal as payments of invoices. Proven business model where you can charge 4-8% of the payment on top of PayPal´s fees. There is a lot of money to be made in this niche.

 

[Project Limitless]

Is it like selling a service thing? They probably don't directly accept payment.

How hard is it to understand that they process paypal payments on your behalf using their own paypal account?
When you sign up with 2checkout and your business is approved, you can process paypal and card payments using their gateway and you don't need to have a paypal account. They'll wire you the money.

 

[mrgodknaows]

I have had this idea for months and years now, Please advise if I am just wasting my time thinking about it.

PayPal is not available in all the countries. Let's not mention a specific country for this discussion. And freelancers there cannot receive payments from the clients directly who wants to pay quickly by paypal ONLY. Therefore, loosing a lot of deals and facing hardship daily. Unfortunately, the PayPal issue is mostly due to government poor regulations and I do not see this getting fixed in years to come. But demand of PayPal service is huge, Imagine having Millions of Freelancers who need PayPal but not having it.

I want to offer a solution here: no, selling PayPal accounts will not solve their problem. In the future, the accounts verification will be required and the account might get locked and its done. So, instead, How about I create a company which will receive payments from clients on behalf of the freelancers and our company transfer the funds to the recipient?

There will be many difficulties gaining trust from people as it's a financial transaction and we are acting as a third party service. Also some technical difficulties as well. Here is what I mean for technical problems.
Let's say our company PayPal account receives money from someone, how will a freelancer know that we recieved their payment? How can we validate a payment for an individual? I have noticed that, PayPal generates two different transaction ID for a single transfer.

Example: Client pay us, $10. Client will see this TRX ID in their own PayPal account TRX ID: ABCDEF
We will see a different TRX ID for the same transfer in our own PayPal account: TRX ID: XCVBG

This makes it difficult for us to validate who sent the money and hard to notify the freelancer about it. Because when we will receive transactions in volume, we cannot manually check for each transfer. But I have seen that, if I search our PayPal account with the client TRX ID, the transaction shows up!

How will I make money? Probably: monthly account charge.
If I can solve the technical part and get social trust, it can be a great business opportunity. Please advise me, anything is appreciated.

this idea is working and I know some companies doing the same right now for years ! and fees are unbelievable !
some companies get 20-30% fee to do this and it works because people have no other choice !
You just need to advertise locally in countries that paypal is not working there.
good luck and hope You can earn money in this way !

 

[Uroperon]

This would work very well, it is just like "Invoicery" and other freelance companies that let people send invoices without a company and still make sure taxes and stuff gets paid, with the only difference that you use PayPal as payments of invoices. Proven business model where you can charge 4-8% of the payment on top of PayPal´s fees. There is a lot of money to be made in this niche.

I'm concerned about the chargeback stuff if an invoice is issued. If I could only receive payment as Friends and Family, then it would be more realistic. What if I get the payment, then send it to freelancer. Later buyer charges back. Then I'll have to cover them. What do you think?

 

[Dopious]

I'm concerned about the chargeback stuff if an invoice is issued.

Have a period of 2-3 month before they get paid.

If I could only receive payment as Friends and Family, then it would be more realistic.

You do not want to get payments as friends and family in a legit business, PayPal will close you down faster than shit if you mix in that. You are starting a real business, not some weird grey stuff.

 

[Uroperon]

Have a period of 2-3 month before they get paid.

You do not want to get payments as friends and family in a legit business, PayPal will close you down faster than shit if you mix in that. You are starting a real business, not some weird grey stuff.

Yes this makes sense. So basically, I'll have to create a platform where people can sign-up and generate invoice, then they send it to their buyer. Buyers payment deposit in to our business PayPal. We hold it for 60-90 days for chargeback. Then cut a small % , the rest sent to seller.
I'm not a technical expert or developer. Could you please point out how this system Should actually be built?

 

[Dopious]

Yes this makes sense. So basically, I'll have to create a platform where people can sign-up and generate invoice, then they send it to their buyer. Buyers payment deposit in to our business PayPal. We hold it for 60-90 days for chargeback. Then cut a small % , the rest sent to seller.

Yes.

I'm not a technical expert or developer. Could you please point out how this system Should actually be built?

You need to talk to a developer about that and make sure you write a really good spec sheet so that he can grasp exactly what you need and quote you a cost for it.