Starting and Affiliate Business (clickbank type) - Where to get merchant account

Discussion in 'Payment Processing' started by borno, Apr 27, 2009.

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  1. #1
    Hi,

    We have been working with affiliate for a while now and would like to go by ourself. We are looking for a bank, or any entity that will offer our company the ability to process non-present credit card transaction. We only offer digitally deliverable products.

    Basically, our business type is identical to clickbank, with a lower volume.

    We have contacted banks that we know, but got rejected almost all the time. This lead us to believe that we are doing something wrong (wich is not the case as our business type) or we are just looking at the wrong place.

    Anyone knows where we can get started ? We know that sometime, it may required tens of thousands dollars in deposite, wich we don't mind as long as it's a solid banking offer.

    Thanks for your help
     
    borno, Apr 27, 2009 IP
  2. fionix

    fionix Well-Known Member

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    #2
    Well, it will need more than just money, but the figure you are mentioned are nothing compared to the real amount you will need to get into the 3rd party payment processing business. You mission will be almost impossible, to find a bank which will sponsor you and allow you to do similar business to clickbank is something which requires a really good business plan / description, money, PCI Level 1 and rock solid servers (which the PCI cert. will ensure).

    We speak at least about USD 100k here just in startup costs, if someone offers you a cheaper solution go with that one and your business will die sooner or later. Also as mentioned it isn’t just the money but much more, and it looks like you don’t have the right connections already, which leads me to think that maybe this isn’t the right way to go for you.

    I don’t want to take down your idea, and I like the pioneer work but the chance you fail is huge, however, all the best for your business.
     
    fionix, Apr 27, 2009 IP
  3. borno

    borno Peon

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    #3
    Thanks for your reply about our business plan. Having 100k to work with is something possible for us. However, is that 100k mostly used to secure an account like a deposit ? We already have PCI level compliant account and hosting. Do you have an idea of wich "bank" would accept our business idea ?

    Thanks
     
    borno, Apr 27, 2009 IP
  4. fionix

    fionix Well-Known Member

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    #4
    The money isn't only for deposit, but also covers the loss you will do once you get started, and you should be the first one in this business which won't lose a certain amount of money on bad merchants which will fool you into their business. The number I mentioned isn’t static, it is just an indication of what you at least should get together (as a min.) before you start this up!

    Also it is important that YOUR servers are PCI compliant and not only the Hosting Center, also you will need to ask you host if they are willing to sign all the documents required by the PCI regulations to ensure your servers are secure!

    For the bank, sorry I can’t help you with the information I have here, as mentioned, you will need a really good business plan and have all the other things in place, even if this is in place, it will not guarantee you the acceptance by a bank, but of course it will rise the score :)
     
    fionix, Apr 27, 2009 IP