I'm building a 2-sided marketplace wherein users can buy + sell advice, and pay for with micro-payments (Fiverr + Clarity = Wisewords.co) here in Canada. I'm pretty sure I need to hold the funds and let people build their balances before withdrawing, as most of their payments will be less than $10. Assuming I do hold funds, how big of an undertaking is it to hold funds for users? Are there many regulatory requirements? Any third-party services that do this in Canada?
Seems like an interesting venture.
When it comes to platforms and holding money there are strict regulatory & compliance requirements. As a platform operator you had rather focus on the core user experience and providing value to your users.
There are several payment platforms that will manage your transaction-holds experience ( for a fee) - PayPal, Stripe, wePay are a few I can recommend. These platforms take responsibility to manage the KYC, Risk, Regulatory/Compliance requirements for the transaction and associated holds experience.
Especially with online fraud continuing to be on an uptick it makes to rely on the experts. Happy to provide further advice if needed
Cheers
Answered 9 years ago
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