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What are the legal requirements to manage online payments of third parties through my company's account?

I'm planning a project where e-commerce can sell and payments via Paypal/Stripe are managed by my company's accounts; which later will transfer the money to their bank account. Beyond not violating the gateway's terms and conditions (which we wouldn't be), what would be legal requirements required to do this? i.e. special financial licenses, I need to know about.

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5

You effectively will be sitting in the same transactional chain / sphere as the likes of Paypal - so you would be bounded by similar laws, operating standards and security requirements as they do in the territory you wish operate in. If you will be holding peoples money, you become a bank with the obvious risks and vulnerabilities, so it is best you seek professional advice.

Great!
So, we should guess that Paypal/Stripe/etc has some kind of bank license to do what they do.
But, what If in my particular case I just manage the account on behalf of my users? It would be, I can create the users account in every platform, legally bounded to the user, and I my platform would just access the financial information to do reports and stuffs like that.
It seems a valid workaround to address this problem, don't you think?

Anonymous User
4

If you are receiving the funds, you are acting as the merchant; therefore your legal entity must be present on all websites. This also means you are responsible for all disputes linked to your "partners".
If your target is instead to act as a financial institution which holds the money (but the merchants need their own account), you need a banking license.

An hybrid model is not possible.

Ok, I think that initially I have thought it like the second model you say, where my platform has accounts on any platform integrated and my users can use that account to get paid. Would it be the model where I need a bank license right?
And since I'm not intersted in the fund handling itself, but I just want to ease the use of any platform to my users, would you say that there is a legal entity which allow me to do it, avoiding to be a bank and also to be legally bounded to disputes and other stuffs?
Thanks matteo

4

1st - many U.S. states have laws against this type of non-bank money transactions.
2nd - you could be creating liability for yourself for 'laundering" money.

I suggest that you should discuss your business model with an attorney before going into this business.

You are completely right Andrew, I think that will modify the business model to avoid that kind of problems.
Thanks

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