Member Avatar for dkny101

Hi. I looking for someone who can give me advice and someone who knows the legalities of integrating "escrow" into a website.

I want to have my website allow clients to be able to deposit money in their account within the website, have a $ figure balance, pay another registered user in the website via an escrow solution within the website or through a 3rd party payment processing company, and withdraw the remaining funds in their balance within the website. The payer would only know the unique ID (for the website) of the receiver.

I would like to know the rules regarding USA and the other major European countries. So far I have been informed that this is not legal in Canada as the website would not be able to accept a payment on behalf of another merchant (meaning the end receiver) unless the receiver of the funds had a merchant account with the payment processing company and the money was sent directly to them.

If this is possible, please advise how I could set it up (if I could do it through an existing solution or by making my own solution I developed). Any help would be appreciated.

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  • Latest Post Latest Post by MktgRob
Member Avatar for MktgRob

Hi. I looking for someone who can give me advice and someone who knows the legalities of integrating "escrow" into a website.

I want to have my website allow clients to be able to deposit money in their account within the website, have a $ figure balance, pay another registered user in the website via an escrow solution within the website or through a 3rd party payment processing company, and withdraw the remaining funds in their balance within the website. The payer would only know the unique ID (for the website) of the receiver.

I would like to know the rules regarding USA and the other major European countries. So far I have been informed that this is not legal in Canada as the website would not be able to accept a payment on behalf of another merchant (meaning the end receiver) unless the receiver of the funds had a merchant account with the payment processing company and the money was sent directly to them.

If this is possible, please advise how I could set it up (if I could do it through an existing solution or by making my own solution I developed). Any help would be appreciated.

While I am sure you will might find someone to talk to the technical side of what you are looking to accomplish I would suggest that you find out all of the legalities involved before fleshing out the tech side as it is easier to engineer a solution to a software hurdle than a legal hurdle.

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