I am starting an online business that allows someone to list a product for sale, which can be bought by another person. My sales come from a percentage of the selling price. I am attempting to build a platform that will take payment from the buyer, and distribute funds to seller, while taking a cut for the business. I have run into the dilemma of fraud issues and I'm looking for any input or recommended resources for how to handle the payments. Here are a few options I am looking into:
A. Setup merchant account to collect credit card payment from buyer to distribute to my account. The website then allows seller to withdraw their sales to their account minus the fee I charge via ACH. I understand this is high risk, and also can screw me with chargebacks in the event a buyer claims the seller did not ship the item or the item was damaged.
Buyer ----credit card---->Website -----ACH----->Seller
B. Buyer pays on my site through paypal. Seller withdraws funds on my site via Paypal transfer minus the commission fee. I'm not sure if it is possible to setup automated paypal withdrawals and I've heard so many paypal horror stories.
Buyer ----Paypal----> Website ----Paypal------>Seller
C. Buyer pays seller directly through paypal for item. Seller then is billed by my site for the commission fees. Seems like seller can get away with not paying me commission fees and this also makes returns complicated.
Buyer ------Paypal----->Seller ------Paypal----->Website
Any advice or direction would be very helpful. Thanks