by thefandango » Sun Apr 27, 2008 12:41 pm
Hi
I have been thinking this through and think on of the easiest ways to make this program accessible, and cheap to set-up and run is to use paypal against itself.
Paypal would be the payment gateway, negating the need for merchant accounts and eft processors.
A person signs-up and adds funds to their proto account via paypal (or credit card using paypal), just like topping up ysp listings credit. It costs them nothing to do this.
Within the proto site sending payments to another user can be free. Receiving money internally between proto account balances would incur a combination of % and flat fee. This would allow ths site owner to recoup the fee paid for receivng top-ups via paypal.
When a user wishes to withdraw his proto balance to his paypal account he can withdraw the balance (minus withdrawal fee/percentage set by admin) to his paypal account. As it is free to send money in paypal the site owner pays nothing and can obtain the withdrawal fee as well.
The users can basically use paypal to transfer balances in and out of proto, and then benefit from receiving payments from other users balances at a much lower rate than paypal and can then send the cash to their own paypal accounts once they have avoided the internal paypal sending fees, so its a win for them as well.