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  1. #1
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    Question 2 way payment system on Website?

    I just had an idea for a new website where people can earn money on my site by offering some kind of service or product (the specifics I've not though through yet )...which got me thinking about how the electronic payment system would work?

    I'm trying to find a payment system that would allow the customers on my site to be able to earn money themselves, whereas I would be able to take a small cut per transaction as well. But so far all of the payment systems that I've looked into only really talk about how I would be able to earn money from my customers, and not how I would be able to host a website where my customers could earn money themselves.

    Surely something like this has to exist right? If so are they expensive to set up?

    Thanks

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  3. #2
    Junior Member codin's Avatar
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    I've created multiple websites in the past that do just this.

    1. I wouldn't recommend using anything pre-made.
    2. Hire a back-end web developer or a full stack developer to build this system for you. This isn't going to be cheap, the last site I created with this functionality I charged 8000 (and I done it cheaper then I normally would because I needed the money at the time).
    3. Any payment processor will work, but this is why you need a web developer to do a custom build for you. You need to set up an automatic payment system to your service/content submitters that pay them out from your account.
    4. Only payout 30 days after the sale, this may sound bad for your submitters, but most websites like this do the exact same thing, you do not want to be chasing after money due to an product/service being refunded within 30 days of the sale.
    5. The reason above is why you do not want to automatically split the money to the provider on payment processing.
    6. Doing this you also get to hold the money for 30 days and claim interest on the money.
    7. You are going to need to learn how to manage the books for a business like this or hire an accountant.

    You are basically looking to set up a marketplace to make commission on other people's products/services by providing them a platform to sell on.
    Market research into possible competitors is going to be very important, if an established market already exists for your niche, you are going to need to either undercut them on comission or provide some extra special features that would attract people to sell on your website instead of theirs.

    For example if you were looking to set up a marketplace for Wordpress themes you would need to have good reasons why people would sell on your website instead of https://themeforest.net/ which is one of the most established Wordpress theme marketplaces.

    It's not cheap or easy to set something like this up, unless you can code the backend yourself. It is very profitable if done correctly.
    Last edited by codin; May 01st, 2017 at 04:54 AM.

  4. #3
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    Cheers for the reply! So yeah, pretty expensive to set up, and not easy too. I knew this kind of thing could be very profitable to do, that's why it got me thinking...

  5. #4
    Junior Member codin's Avatar
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    The cheaper but more time-consuming way would be to learn a backend development language. Then you are also not relying on paying others everytime you need to make changes to the system as you can do it yourself.

    I create systems like this using mostly PHP. I also know Python and Ruby but have always preferred PHP as I have been using it for over 10 years.

    If you have a solid understanding of HTML and CSS, learning a backend language isn't too difficult but will take dedication and a good understanding of security to implement a system like a commision based marketplace.

    Python and Ruby are a lot easier to learn than PHP in my opinion. PHP is very easy to learn, very hard to learn how to code correctly. There are many bad PHP applications out there, Wordpress being a good example of a very poorly written PHP application. It is very easy to write bad PHP code, not so easy to write bad Python and Ruby as they are much stricter languages.

  6. #5
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    I have some experience with PHP & HTML but not a massive amount. Do you know how to set up the payment system as well? Or is that the part where you'd rather pay a professional to do?

  7. #6
    Junior Member codin's Avatar
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    In previous marketplaces I have created they wanted Paypal only as a processor, as it also handles card payments.

    Paypal provide an API you can call with PHP, you create what is called a listener. This is a page that Paypal will load and pass variables to on successful payment. (Most other payment proccessors have similiar systems availible)

    So on a successful payment, you can have Paypal pass the id of the product, the cost, order number etc to your listener. Your listener can then pull up the data for the product and correctly attribute the commission to the seller.

    At this point you are just going to store it is a value in a database, so for example the seller can go to their profile and see they have made 300 of sales that month. What you then do is have an automatic system set up to pay that money out from your account to the seller after 30 days have passed.

    1. Customer pays the full amount to you.
    2. You record the sale and attribute the commission to the seller but only on the website/database (no payments at this point)
    3. Hold the money for 30 days in case of refunds or problems with the product (whilst also collecting 30 days interest).
    4. Automatically pay out the commission from your account to the seller after 30 days from your account to theirs.
    5. When you do your books, you can then declare the full amount of the sale + interest you made, but then also declare the commission as a purchase so you can claim the VAT back on the comission you paid out to the seller.

    This is the general process, I cant really explain how to code or I would be pasting thousands of lines of code here (It is a lot of work to set an automated system like this up).
    Last edited by codin; May 01st, 2017 at 05:58 AM.

  8. #7
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    Ah ok. So i guess it might not be that difficult to set up. A lot of work - yes - but in terms of difficulty, if PayPal (and others) provide an API then I don't see the difficulty in doing this myself tbh

  9. #8
    Senior Member bleau canon's Avatar
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    Quote Originally Posted by garunas View Post
    I just had an idea for a new website where people can earn money on my site by offering some kind of service or product (the specifics I've not though through yet )...which got me thinking about how the electronic payment system would work?

    I'm trying to find a payment system that would allow the customers on my site to be able to earn money themselves, whereas I would be able to take a small cut per transaction as well. But so far all of the payment systems that I've looked into only really talk about how I would be able to earn money from my customers, and not how I would be able to host a website where my customers could earn money themselves.

    Surely something like this has to exist right? If so are they expensive to set up?

    Thanks
    Contact these people, tell them what you want to do, and see if they can give you what you want using Wordpress.

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    Last edited by bleau canon; May 01st, 2017 at 05:38 PM.
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  10. #9
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    Who are these people are you on about? Private web developers?

  11. #10
    Unpaid WDF Intern TheGAME1264's Avatar
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    I'm not sure about the idea itself. Are you talking about something along the lines of Upwork?
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