I am working on a new service online, and next week we should go life with the first group of partners.
If everything goes well. yes, we are blocked, blocked by credit card companies.
We are creating a platform, that facilitates the sales of Gift Vouchers Online for Smaller Businesses.
The reason why we created this platform is simple. Small business often don’t have the technical knowledge to offer this. And they shouldn’t have it, they should take care of their clients.
Ofcoure they can ask an IT company to setup the online form, the payments, and then a system to follow-up. All this comes at a price, meaning an investment.
Paypal has a solution for Gift Vouchers, but it takes some knowledge to create the link and afterwards to transfer to you account. It is all do-able but Small Businesses wants something easy and clear and understandable.
The issue with our platform:
We need to accept Credit Card payments for others and now Visa and MasterCard on0t like this, they don’t want to work like this. The risk is to high for charge backs.
Charge back can be issued up to 1 year after buying online. (even most off our partner have a max. validity of 6 months). So the risk is high?
Also I could sell the vouchers and then run away with the money they told me, this is the base of criminal activity and I would end up in a prison instead of growing the business worldwide and end up at a white beach.
This bocks a lot off e-commerce platforms where the turn-over for 1 partner is low (spa or restaurants don’t sell 1 voucher a day). But with the platform, we sell several vouchers a day (from different partners).
The small business can sell vouchers as well and then stop the business after taking all the money
I have a small business and we sold for > 20.000 CHF / year on Gift Vouchers, never we had 1 Charge back.
Our solution is simple, we will use the good old PayPal, yes, they allow it.
Meanwhile we will look for a good direct partner met Visa and MasterCard and if needed we will move the company out off Switzerland to a country that is e-commerce friendly. But first the launch
PS I asked them how BuyClub or Groupon or Hotel Booking Websites could be accepted, as they also sell air, sell vouchers, sell things not belonging to them.
Did you have any issues in your country to accept Credit Cards Payments for third parties or do you use PayPal as well?