[Shizka]

Great question! I recently launched a startup where we ended up using Paypal because we simply couldn't find any good alternatives. It is a huge drawback from our point of view and we really want an alternative. There just doesn't seem to be one.

We wanted to set up a payment flow where a consumer would transfer the money to us, and after the delivery of the product we would transfer it to the seller. Strripe offers something that can accomodate this flow, but not internationally. It is only available in the US.

There seems to be a huge gap in the market here. Is there something missing from my exploration of alternatives?

[steven2012]

At least in the US, what you are attempting to do would probably run into a bunch of regulations. Not only are you probably aggregating funds, which smacks into money laundering regulations, but VISA/MC rules say you can't charge a card before the product ships. If what you are trying to do is some sort of escrow service, again at least in the US, that requires a license.

[Shizka]

Thanks for the answer. Ouch, that makes sense and it is probably something similar in Europe.

Do you have any idea for how to ensure that the person has the funds when we need to charge the card?

And do you know how vendors like Airbnb handles this?

[scoot]

Do you have any idea for how to ensure that the person has the funds when we need to charge the card?

You preauthorise the card for the amount at purchase, then complete the transaction on shipment.

[toomuchtodo]

Would you not preauthorize the card again right before shipment? What if their card is no longer valid, closed, or is past their credit limit?

[Shizka]

But that would still leave you with a risk that the card is closed or that the payment will get rejected, right?