HONK KONG LLC PAYMENT PROCESSORS

[shizui04421]

Hi, has anyone worked recently with Honk Kong LLCS? i have a service that works as a "broker" between sellers and buyers, my goal is to being able to accept as many payment options possible and to send money with as many payment options possible.
NOTE: we have high chargebacks % because our website is mainly used to young people who take cards from their parents.

 

[Sols]

What you're describing is a money service business of some sort, which probably requires a license in Hong Kong (MSO license). Combined with high chargebacks, this would be a nightmare for a payment processor.

I'd start by lowering the chargebacks, see if crypto would work, and see if a license is necessary.

Where are your customers located?

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This is the probably the answer to your question.

 

[shizui04421]

Sols said:
What you're describing is a money service business of some sort, which probably requires a license in Hong Kong (MSO license). Combined with high chargebacks, this would be a nightmare for a payment processor.

I'd start by lowering the chargebacks, see if crypto would work, and see if a license is necessary.

Where are your customers located?
Click to expand...

Nono, no license, i see a lot of people offering this service and dont require a license, mostly is buying and selling products and we only help sellers find their customers and buyers find their products by taking a fee, so this is important to have many payment options

 

[avalanche]

Sols said:
What you're describing is a money service business of some sort, which probably requires a license in Hong Kong (MSO license). Combined with high chargebacks, this would be a nightmare for a payment processor.

I'd start by lowering the chargebacks, see if crypto would work, and see if a license is necessary.

Where are your customers located?
Click to expand...

It looks like shizui04421 is running a marketplace

 

[Sols]

A marketplace that holds the money (takes money from buyer and gives it to the seller) rather than facilitate direct P2P payment between buyer and seller is offering a financial service and holding a balance. It might be that Hong Kong doesn't regulate it at the moment, though. However, some payment methods and payment processors based in locations where it is a regulated activity (such as EU), may require a license in order to offer processing services.

Speak with Nuvei, Zen, Adyen, and Paymentwall and see what they say.

Even if a license (or something similar) isn't required, the high chargebacks are going to be a much bigger problem anyway.

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This is the probably the answer to your question.

 

[clemens]

Why this is posted under offshore company ?

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One of my favorit articles in Mentor Group ~ Sending money anonymously archieve Financial Anonymity

 

[avalanche]

Sols said:
A marketplace that holds the money (takes money from buyer and gives it to the seller) rather than facilitate direct P2P payment between buyer and seller is offering a financial service and holding a balance. It might be that Hong Kong doesn't regulate it at the moment, though. However, some payment methods and payment processors based in locations where it is a regulated activity (such as EU), may require a license in order to offer processing services.

Speak with Nuvei, Zen, Adyen, and Paymentwall and see what they say.

Even if a license (or something similar) isn't required, the high chargebacks are going to be a much bigger problem anyway.
Click to expand...

It may be classified as escrow services. Interesting by the way, I'm also planning to launch my own marketplace and I'm curious if license is needed;

I've seen though some marketplaces of digital products and haven't noticed them publishing any license on their website.

 

[Sols]

avalanche said:
It may be classified as escrow services. Interesting by the way, I'm also planning to launch my own marketplace and I'm curious if license is needed;

I've seen though some marketplaces of digital products and haven't noticed them publishing any license on their website.
Click to expand...

Aside from simply facilitating P2P payments where you don't insert yourself as a middle layer, an easy way to avoid licensing is to work with a payment processor that has a digital marketplace platform solution. Stripe and Adyen have the best that I've seen.

https://www.adyen.com/platform-paymentshttps://stripe.com/connect
They hold the money owed to the sellers by the buyers. The marketplace itself doesn't hold that money. It only withdraws its commission.

Licensing is probably not necessary in many parts of the world, for now. I believe EU was the first big mover in regulating marketplaces as financial service providers (PSD2). Their reasoning is that holding money is a financial service and there is a money laundering risk in marketplaces. E..g, you could collude with someone on a marketplace to launder money by buying something from them with stolen money. The seller gets clean money from the marketplace.

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This is the probably the answer to your question.

 

[clemens]

Sols said:
E..g, you could collude with someone on a marketplace to launder money by buying something from them with stolen money. The seller gets clean money from the marketplace.
Click to expand...

very common way to clean money in small sizes. I agree it would be better to use a platform from the big players in the market to avoid all the trouble with KYZ and Moneylaundering regulations.

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One of my favorit articles in Mentor Group ~ Sending money anonymously archieve Financial Anonymity

 

[avalanche]

Sols said:
Aside from simply facilitating P2P payments where you don't insert yourself as a middle layer, an easy way to avoid licensing is to work with a payment processor that has a digital marketplace platform solution. Stripe and Adyen have the best that I've seen.

https://www.adyen.com/platform-paymentshttps://stripe.com/connect
They hold the money owed to the sellers by the buyers. The marketplace itself doesn't hold that money. It only withdraws its commission.

Licensing is probably not necessary in many parts of the world, for now. I believe EU was the first big mover in regulating marketplaces as financial service providers (PSD2). Their reasoning is that holding money is a financial service and there is a money laundering risk in marketplaces. E..g, you could collude with someone on a marketplace to launder money by buying something from them with stolen money. The seller gets clean money from the marketplace.
Click to expand...

Problem of Stripe Connect it will probably limit the number of countries where your sellers may be from

 

[Sols]

avalanche said:
Problem of Stripe Connect it will probably limit the number of countries where your sellers may be from
Click to expand...

It's the same with Adyen. They are limited in what markets they can offer their services based on what licenses they hold.

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This is the probably the answer to your question.

 

[shizui04421]

avalanche said:
It looks like shizui04421 is running a marketplace
Click to expand...

correct

 

[shizui04421]

Sols said:
It's the same with Adyen. They are limited in what markets they can offer their services based on what licenses they hold.
Click to expand...

i tried to apply for airwallex but my request has been denied, while i see a competitor of mine doing the same business with airwallex, why ? how does it even make sense

 

[cryptounions]

shizui04421 said:
i tried to apply for airwallex but my request has been denied, while i see a competitor of mine doing the same business with airwallex, why ? how does it even make sense
Click to expand...

maybe your monthly volumes are too small?

 

[Sols]

shizui04421 said:
i tried to apply for airwallex but my request has been denied, while i see a competitor of mine doing the same business with airwallex, why ? how does it even make sense
Click to expand...

As @cryptounions wrote, it might be that your business is too small.

But there are many, many other possible reasons why you were declined. Only Airwallex knows for sure.

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This is the probably the answer to your question.

 

[shizui04421]

cryptounions said:
maybe your monthly volumes are too small?
Click to expand...

the monthly transactions are around 700/800k monthly, also my competitor has this payment option.

 

[tinasa]

It depends mainly on what business you are, I may have the payment you need

 

[JohnLocke]

avalanche said:
I've seen though some marketplaces of digital products and haven't noticed them publishing any license on their website.
Click to expand...

Depends on how big they are going to be. If the business is growing into the millions a license will be required. Everything else will ask for trouble.

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