Exploring a Payment Facilitation Model – Potential Issues?

[Zyncol]

Our business operates in a digital products space that falls into a light grey area,‌ where many companies struggle to secure reliable credit card payment processing. We’ve managed to establish‍ long-term solid partnerships with payment processors and are now considering offering our processing capabilities to⁠ competitors,essentially acting as a payment facilitator with a markup.

Since we all sell similar products⁤ and have a very low chargeback ratio, we’re wondering what potential challenges this model might⁣ bring. Do payment processors typically allow this kind of arrangement? Has anyone tried something similar,⁢ and if so, what were the main issues?

 

[daniels27]

No they︀ normally require one acquiring relationship with visa and master per shop, which is per domain︁ normally. You would have to get another relationship per domain. And then you would be︂ still more than gray as your t then become a financial service provider without licence.︃

There are two things you can do.

• You become a marketplace and sell you competitors︄ on your website. For this to be legal you actually have to buy the goods︅ from your competitors and sell it yourself. It technically is drop shipping and not a︆ marketplace.
  
• You apply for payment relationships for each of your competitors shop in your company︇ name and become the merchant of record.
  

 

[uplana]

what you try to do OP is 3rd party processing and requires a master agreement‌ with an acquiring bank which is very hard to get if not almost impossible in‍ 2025.

Companies like CCBILL and Verotel in the adult industry are doing it with such⁠ a license.