Mr. Flibble
Registered User
- Messages
- 41
There are a number of small businesses that I know who do not have the technical expertise to set up a system to accept online payments. There is an opportunity for me create a website which will allow their customers to send payments to, and I will then pass on the funds to the business.
The payments would be made using credit card directly into my (my company's) merchant account via my website. Let's presume that my bank / merchant account provider are happy with the arrangement. I would charge a % fee on each payment.
My question is, is this legal? If so, would I be required to charge VAT on only the fees part of the payments and be able to pass on the rest of the funds without VAT.
I understand that there are already solutions out there for this - PayPal etc, but the viability of the business model is not my question.
The payments would be made using credit card directly into my (my company's) merchant account via my website. Let's presume that my bank / merchant account provider are happy with the arrangement. I would charge a % fee on each payment.
My question is, is this legal? If so, would I be required to charge VAT on only the fees part of the payments and be able to pass on the rest of the funds without VAT.
I understand that there are already solutions out there for this - PayPal etc, but the viability of the business model is not my question.