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Thiking about starting a 3rd party merchant account, is it legal?

Discussion in 'Business & Tax Advice' started by ineed$, Nov 5, 2009.

  1. ineed$

    ineed$ Junior Member

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    I want to start a 3rd party merchant account service from the USA. Will accept everybody (high risk, porn, drugs, replicas) and charge a regular fee.

    Will put money in an account and send it to the customer to any bank in the world.

    Is there any legality issues I should be worried about (money laundering or legal problems from customers)

    Is this legal in the USA. I do not want to hassle my customers with ID and license verification BS.

    If anyone knows of any good companies they use or heard of let me know. I am looking for one
     
  2. ineed$

    ineed$ Junior Member

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    Someone post and discuss this with me
     
  3. AdisLCS

    AdisLCS Power Member

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    oh man, I have been trying to think of something like this for long time.
    I let over 150K on the table for a niche because of payment processing issues. There are many ppl in this niche that would jump on this like crazy.
    niche is PayPerView - to give u an idea in 07 I made over 17K in less than 7 hours, my partner did over 350K in few days but lost PayPal accounts,google checkout all that crap and got threatened with legal action because payment processors released his info. Niche is extremely lucrative but it has copyright infr. issues.
    If you come with a workable solution we could bang the heads together and start something, but hard part is to stay legal and especially if payments are collected from USA.

    If larger amounts are being sent / received IRS and other authorities will catch the wind, so it should be very carefully planned.
    It would be great if we could just set up a merchant account , collect and send payments from sub merchants but I don't see how u would not be legal participant if something goes wrong.

    One way would be get offshore cooperation with merchant account,bank account,debit card etc. Those are around $5K-$7K just to register and open. From my research back in the days Panama seemed most suitable.
    Might need a consultation with a specialized lawyer.
     
    Last edited: Nov 9, 2009
  4. ineed$

    ineed$ Junior Member

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    Thanks for input, check PM
     
  5. SpamHat

    SpamHat Junior Member Premium Member

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    That's a long, tough (and expensive) road you've got ahead of you.
     
  6. catapult copy

    catapult copy Registered Member

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    Check out the securities commission as I think you will need to register and cayman islands is best. No Income tax, no tax for foriegn nationals. You will need at least 8-12 llcs as well, and a far bit of research. Is doable. Alertpay is one that started with the exact same concept when stormpay crashed...
     
  7. BenQs

    BenQs Regular Member

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    If you're going to accept drugs, you'd better be offshore.
     
  8. ArthurDent42

    ArthurDent42 Newbie

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    Even with offshore companies they will come and get you eventually if it's drugs or kiddie pr0n. Even if you are offshore, too. FOr copyright infringement if you can find anywhere you want to live that hasn't signed the Berne Convention you might be OK.
     
  9. TonyDavis202

    TonyDavis202 Junior Member

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    Ahhh... I remember those days....

    Well a lot of 3rd parties in the US don't work if you are doing something high risk. They can/will change there payouts, hold funds for any reasons, etc. I assure you, I have tried nearly all the good ones in the last 7 years. If you are pumping something illegal, best bet is to register somewhere in the Islands, get 2 corporations which both are ran by a Trust. Get a Bank accounts in that country and DO NOT wire money back to the states. Use all ATM transfers for small amounts. Call Companies Inc. There a pretty fast setup (1-2 months for everything)

    There is a few banks in the US that will take high risk merchant. Usually very small banks ran and manage by a merchant provider that talked them into risk accounts for higher rates. US Merchant accounts are always better due to the pays our 24-72 hours. 3rd Parties are at the average 1 week to 1 month for payouts with a 5-10% rolling reserve.

    If you are doing pharmarcy or anything similar, give it up. Unless you do 200k + monthly, no bank will touch you outside the US. No bank will deal with you inside the US. Plus the time you can get outweighs the money. Same for poker, etc. If its replica, there is a bank I know that would take it but you need to show proof you do 40k+ in volume monthly and have 6 month of processing statement showing you are under a 1% chargeback rate

    To make a long story short, this will cost you some real money and at the end of the day, the US can reach over to that account and have that country freeze your account. Be careful man and I wish you the best of luck!
     
    Last edited: Nov 10, 2009
  10. ineed$

    ineed$ Junior Member

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    This seems much harder then I thought. Let me think how to respond:(

    So if I open a 3rd party merchant account, I can not do gambling and pharmacy. Regular porn and replicas are ok?

    How the hell does Gspay.com and other crappy merchants do it?
     
  11. ronsteve

    ronsteve Newbie

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    You need a high risk merchant service provider. If you need one account that does it all, you will probably not find it. If you want to market different products or services consider high risk "higher than normal industry standards for charge backs". Then you will probably need to build a few relationships with several processors. The processing fees are higher than normal and some will request a reserve for future charge backs. I know merchant services inside and out because I been doing it for 10+ yrs.

    PM if you need help or have questions.
    Posted via Mobile Device
     
  12. TonyDavis202

    TonyDavis202 Junior Member

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    Well dont go with GSPay. I know a guy on it now. He is dealing with it cause he does not know where to find a good high risk account. The pay him once every month, which sucks!!

    PM me and I will point u in the right direction. A reserve of 5-10% is what you WILL receive depending on your business. But I have never dealt with phamarcy and never plan too. Porn and replica is ok but if you have no history and you come in doing big #'s, get ready to put some heavy money down or collateral.
     
  13. Cookiehunter

    Cookiehunter Registered Member

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    How is the investigation going?
    It's interesting for a lot of fields, not only "illegal" stuff, considered that paypal and others are taking over bigtime.
     
  14. lordmenace

    lordmenace Newbie

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    Let me know if you get this service off the ground.
     
  15. thebizwiz

    thebizwiz BANNED BANNED

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    If you need high risk Merchant processing then I am the person to talk about this with. I have had over two dozen merchant accounts, I have personal relationships with the BANK reps ( NOT merchant reps, banks are higher in the pecking order ). I have had accounts open for adult sites, sweep stakes, and much more high risk accounts than gambling, or others.

    AGG accounts are a great work around for that, however there is a work around for this it just needs to be planned out. There is not one straight answer for this, however I do believe it is very possible.
     
    • Thanks Thanks x 1
  16. thebannedone

    thebannedone BANNED BANNED

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    I need processing help for my biz. Please contact me. PM me your email or skype or gtalk.

    Thank You
     
  17. thebizwiz

    thebizwiz BANNED BANNED

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    Only hugh challenge is that if they find out you are using your account for 3rd party processing they will shut it down and give you a TMF. If this something you are serious about then PM me and we can work something out, find a solution fort his together.
     
  18. intelmerchantservice

    intelmerchantservice Newbie

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    This is a great idea but the powers that be these days, they will find you once you have sizable income.
     
  19. vivekkumarverma001

    vivekkumarverma001 Newbie

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    can you give me your contact number
     
  20. vivekkumarverma001

    vivekkumarverma001 Newbie

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    i need your contact information