Hi all, I am looking at starting a service online which would be based on taking a 5% fee for a successful transaction, in a similar way to the way Ebay take selling fee's. My question is what would be the best way of administering this kind of fee? For example someone will post something on the site for free and then if the transaction for them with a buyer is succesful then we will charge them 5% of the sale price. Is there an easy way to take our fee when the sale is completed or would we have to invoice the seller after the transaction has taken place? Thanks Cray
Make them enter there banking details before they can sell items, then at the end of each month just take what they owe you..?
Thanks for the input. Not sure people would go for that on a new service though? It's ok when it's a trusted name your dealing with but I wanted the process of them signing up and posting to be very straight forward and I think trying to get banking details at that point (registration) would kill it a bit.
Invoice the seller. Otherwise, you could potentially use your own merchant account but then you would be factoring. And if a processor thinks you are factoring, your account will be shut down. Plus using your own merchant account, you assume all the risks of the sell