So you’ve started you’re journey. You selected your name, created your logo, and you’ve signed a contract with Near Me to power your marketplace.

Awesome! And these questions arise…

How are you going to process payments from your customers? How are you going to pay your marketplace vendors?

Here’s the problem: you cannot use a typical processor like Authorize.net or Paymentech because a marketplace has different payment flows than a traditional ecommerce business. You need to find a payment processor that can split payments between your providers and you.

Payment Processors We Integrate With at Near Me

The primary payment processors we work with are Braintree, Stripe, and Paypal. Each of these processors have strengths and weaknesses, as well as certain countries that they operate in.

According to Hackerpreneurialsm, here are some factors to consider when selecting a merchant processor:

1. Cost: How much does it cost you to collect & pay out?

2. Funds Flow: i.e. does the money go through you or straight to your providers? This will impact how the original sale is taxed and can also shift liability from you to your providers. Balanced & Stripe take two very different approaches!

3. Geographical coverage: Can you collect and payout in the USA vs other countries?

4. Invoicing: Do you need to invoice your customers? Does your provider (e.g. PayPal) provide the feature for free, or can you integrate your provider with a 3rd party invoicing solution?

5. SSL: If you collect payment details on your site, you need to purchase a certificate.

6. Taxation: Under what arrangement do you engage your providers? Do you need to generate tax forms (W9)

7. API / Documentation / Support: Are the api & docs good, easy to integrate & can you reach out to support?

8. Credibility: Do people trust & recognize your provider?

So get to work; it’s time to do your research and select a merchant processor for your marketplace. Find a service that is cost effective, compliant, and easy to use, and get this task put to bed. You’ve got your heavy lifting ahead building supply and demand for your marketplace.