Payment protection

Tezread

I'm planning an e-commerce web site for a small business. The number of transactions will be low (below 50) as I cannot see growth being huge in the first year. But basically the system allows professionals to bid for projects.
The commissioner can award a project to a professional.
Before a project starts you ask the professional to send an online Project Agreement and create an Escrow Request. The commissioner reviews and approves the Project Agreement, deposit funds into the Escrow Account abd the e commerce organisation holds payment in an Escrow Account whilst the commissioner reviews the project work.

If the commissioner is satisifed with the work they release the Escrowed funds to the professional.

If not satisfied, the commissioner can choose not release the Escrowed funds, and ask us to refund the Escrowed money to you.

I was wondering what payment protection sites are out there that are easy to customise & integrate that provide all the functionality above plus more?

There are so many to choose from and making an error of judgement could cost alot!

bpat1434

Look into PayPal.... not sure of their Escrow support, but they may have something. You may also try Escrow.com. If you google for Escrow service I'm sure you'll get a slew of sites.

Tezread

I have read up on escrow.com and paypal. The fees are off putting. I was wondering what is the law concerning payment protection. How feasible is it to use open source payment protection software that has no fees? is it feasible to just build your own system?

bpat1434

It's not feasible to create your own system. You'd have to find a 3rd party (seeing as you are a contractor, you have a conflict of interests) to hold the money (a bank, a lender, a loan shark) and be the intermediary between two parties. It's not as easy as putting money into an account, and then allowing the two parties to agree and transfer the funds. It's more along the lines of party 2 puts into 3rd party, party 2 tells 3rd party product is satisfactory, 3rd party transfers to party 1. what happens then with a dispute? who will determine the more right party? Certainly an objective person needs to do this.

You're better off using a payed system. Then you have someone to fall back upon because you are paying for a service and they are liable with you. It's a cover your butt situation. OSS won't cover you. It's use at your own risk. I'd personally bite the bullet and pay for it. Especially if you make a wrong decision and it can cost a lot. Make a right decision and pay for the service of an Escrow.