We require to understand the pay in and pay out process for a freelance service marketplace. we have read that the funds must not be transferred to our marketplace bank account and if we do so it requires a money transmitter licence. We need help to understand if this is true and the options we might have to pay our global freelancers.
There are a many ways to setup payment in online marketplace. Here are a few examples:
1. Use a credit card processing service - This is the most common way to handle payments, and it's easy to set up. You just need to sign up with a reputable company and enter your billing and shipping information.
2. Set up a gateway account - A gateway account is a type of payment account that allows you to take credit or debit card payments online. This is a good option if you want to accept payments from a large number of customers simultaneously.
3. Use PayPal - PayPal is one of the most popular payment methods online, and it's easy to set up. Just sign up for an account, add your business information, and start accepting payments.
Whatever payment method you choose, make sure to keep your billing and shipping information accurate so that customers have an easy time paying for your services. And last but not least, remember to keep your business running smoothly by keeping an eye on expenses and making necessary adjustments as needed!
Legislation varies across different countries. When you hold other people's money you become a custodian, in the early days of a startup you can do it without a license, but at some point you would probably have to become compliant. That's why for early stage startups I recommend using payment gateway providers like:
- PayPal Commerce Platform for platforms and marketplaces: https://www.paypal.com/en/business/platforms-and-marketplaces
- Stripe for marketplaces: https://stripe.com/en-es/use-cases/marketplaces
- MANGOPAY (only in Europe): https://www.mangopay.com/pricing/
All these providers count with licenses and compliance teams to ease you the task of having to deal with it on your own.
I'll be happy to share with you some examples of what I've done with my startups and with the companies I consult.