Member Avatar for danielkull

Hi,

I am building a website that will allow users to send money to each other for goods and services, then withdraw money from account (the website) to a bank.

Authorize.net is only for facilitating payments, the same PayPal etc. and I cannot find anything online that will explain me, how to create such functionality and what service I should use that allow me to create a gateway for banking transactions.

Anybody has an experience working with this kind of functionality?

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A concise roadmap that fills the gap between ’s high-level idea and the implementation questions from elkull.

Use a marketplace/payments‑platform instead of trying to act like a bank. Modern “platform” products let a website accept cards or ACH and then pay sellers (or users) without you building a full banking stack. They provide onboarding, KYC/KYB, payout scheduling, tax reporting, and webhooks for failures — so the heavy lifting (PCI, verification, payouts) is handled for you. ()

About merchant accounts: not necessarily. Providers offer models where recipients become connected/sub‑merchant accounts (or claim PayPal/Venmo payouts) via your onboarding flow; that means the recipient usually doesn’t need to get a separate merchant account themselves — the platform/provider manages that relationship and the verification process. Plan to implement the provider’s hosted or API onboarding and to respond to verification events. ()

For bank transfers/withdrawals use ACH‑focused APIs (and expect ACH timing/return windows). Services such as Dwolla (and Stripe’s bank transfer options) are built for push/pull bank transfers; combine them with instant or micro‑deposit verification (Plaid or provider equivalents) to reduce failed payouts and manual steps. Also design for holds, reserve periods, chargebacks and webhook handling for payout.failed/return events. (developers.dwolla.com)

Compliance & next steps: if the platform holds or transmits third‑party funds you may be a money‑transmitter under U.S. rules — federal MSB registration (FinCEN) plus many state money‑transmitter licenses and an AML program can be required. Engage counsel early, pick a marketplace product to reduce scope, test fully in sandbox, and document AML/KYC, dispute and reconciliation flows before going live. (fincen.gov)

Troubleshooting checklist (practical): pick a provider with a robust sandbox, implement account verification + webhook handling, simulate chargebacks/failed ACH, watch for payout delays/holds, and prepare documentation for any licensing/Bank/PR requirements.

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Member Avatar for Dani

I am thinking (because you are not a bank yourself) you will need to first do a credit/debit card/check payment from one person, and then a wire/ACH transfer to the other person.

Member Avatar for danielkull

I am thinking (because you are not a bank yourself) you will need to first do a credit/debit card/check payment from one person, and then a wire/ACH transfer to the other person.

Let's say I will use PayPal, the problem is that if I want to allow people to transfer money from website's owner account to user' account, then this user has to have a Merchant Account set up... is that true?

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