Payment System

[gvanto]

I was wondering if someone could provide some advice about payment acceptance systems. (particularly using php, so it's secure and practical).

Like scriptlance.com or moneybookers.com / all the sites that let you upload money to your 'account', either using paypal or straight Credit Card.

Like, how does this upload process typically work and where is the 'online money' kept - just a database? Also if a user wishes to withdraw his account balance - what is the easiest way to do this, direct to bank transfer / perhaps paypal?

Help much appreciated,
Gerry

[mykg4orce]

Sure, everything is in a database somewhere...
Like paypal, when you add your bank account to your paypal account and pay for something through paypal using your bank account as the method of payment. paypal actually has to call your bank, verify the details and then transact the money. Its not automated, and it cannot be for security and fraud reasons. Thats why there is a 3-4 day period for any amount going through your bank account via paypal.

When you withdraw funds form your bank account or CC to add to paypal...etc. They money is transfered to a Paypal account and a bank. From your bank to paypal's bank. Paypal doesn't actually hold physical money in an office somewhere.

And the online money is really like an account statement that you can access for any interac/debit card. Thats all it is, a balance. Actual money transactions take place via banks and financial institutions.

Because you can imagine what could happen if anyone could just write a script to connect to a bank account...

[gvanto]

"Because you can imagine what could happen if anyone could just write a script to connect to a bank account..."

• He he yeah, total mayhem!

Thanks for your explanation mykg4orce (ps: like ur signature lol) ...

So if I want to have a similar setup for my 'company' (which is a mere website right now, say MyCompany), do I have to setup a business bank account and then users' online account balances simply reflect the sum of transactions between MyCompany and UserX?

What if, for example, I would like to take a credit-card / paypal payment for $50 from user A, then give UserB $40 of that payment - will I simply keep it all in MyCompany's bank/paypal account but keep track of users' balances in the DB? (which they can withdraw at a later stage). Is this correct?

Many thanks,
Gerry

[gvanto]

oh yes, what if I want to create a pay-out system whereby, automatically at the end of each month, each user receives their respective balance in their bank/paypal account? Do you know how this works?

help appreciated!
Gerry, pondering payment systems