I saw new group buying websites like Groupon, Socialbuy or Livingsocial popping up all over the place.
I'm thinking of starting a Groupon like service in my area - the problem I have is I've not figured out how the backend online payment is handled- as visitors credit card are only charged if X number of prescribed people buy a product by a certain time.
Does anyone know how the backend of the credit card processing is done - does Groupon keep all our credit card details and then bill us when the deal tipped or is this handled by the e-payment company? How can we ensure that the credit card details are not stored in an intemediary like Groupon - as it may end up being taken away by a disgruntled employee and sold to the highest bidder?
Can Paypal or Escrow handle the back end processing for Groupon type of business?