Hi guys I am just wondering , how can we start our own payment gateway like paypal.com , say if we install the script on hosting , Got LLC registered and trademarked , it is fine to start ?We can make our payment gateway for public use right after these 3 steps ?or any other things we need to do. or any other legal procedure involved ? P.S.if you are really wise in this question , continue the discussion...Thank you
Your first major issue will be PCI DSS compliance. This is the security practices dictated by the major credit card companies (Visa, MasterCard, Amex, Discover Card, JCB). It dictates how you will secure your data in terms of hardware, software, and practice. It is expensive to do and maintain. You will need to hire a company to certify your compliance on a regularly scheduled basis. Failing your certification can mean you get shut down. Your second major issue will be getting certified by the processing networks. To be a successful payment gateway you must be certified on every processing platform and there are at least 16 of them that I can think of off of the top of my head. Being certified takes about two months for each. You can do them simultaneously but you would be looking at at least a year to be certified on all of them. And each one has a different API so you will need to code your payment gateway to work with all of them. Your third major issue will be the data you store. Not only do you have the PCI DSS issues to deal with, but you will need to capture and store every transaction that runs through your system for years. That kind of data will require tons of storage space (that will also need to be secured). Your fourth major issue will be processing volume. A gateway must be able to perform transactions in a second or less. This means your hardware solutions must be able to scale for heavy traffic especially over the holiday season. It will need to be able to handle hundreds of transactions per second (thousands if you become successful). That is a big reason why you'll need to use a higher level language over PHP. Your fifth major issue is that you will need to create a powerful yet easy to use API for web developers to use to connect to your payment gateway. They need to be able to do everything a credit card terminal can do through code. Documenting that should be fun!
I would look at options of reselling another payment gateway's services... starting from scratch would be a huge headache.
When I turn to a big coder one day i will make this stuff xD Just thinking about it gives me nausea ROFL
Better to be away from that , it was a good business when nothing at that niche was actually available , but now , there are plenty available in their niche , ie payment processor and needs tons of investment , and after you make tons of investment , why do you think people will join your gateway when there are plenty available ? So , and legal issues are plenty , if you dont know about them , its going to be harder
And another thing is it will be tough to start, because millions of online shops will have to start using ur payment system. Oh wait, you're already banned. lol