Hi everyone, I am considering a payment system for a website I am working on and don't know if the payment system I want to implement is allowed. This is a US based website. I am hoping that some of you with more experience might be able to provide some advice So the website will connect 2 groups of people. Type A will pay Type B to complete a service. But I need to make sure that when Type A offer, let's say $5 for the service, that Type B can be sure they get paid after they complete the service. The plan is to charge Type A the $5 right as they find someone to do the service. But I don't want Type B to receive it right away, because of course they first have to complete the service. So Type A pays that $5 to my website. I hold that money (let's say, in my PayPal account). And then when Type A confirms that Type B finished the task, then I will send a PayPal payment to Type B. Type B also has the option to collect money on the website, so for example they request to be paid once they have $50 or $100, etc - whatever they choose. So my question is: am I OK (allowed to) hold this money basically in my PayPal account this whole time until Type B requests to be paid? Is there no legal issues or other problems since I am essentially an "escrow" service in some way. Any help or suggestions are appreciated Thanks!
For this also you require a financial service license. Contact any attorney for more informations on this matter