HONK KONG LLC PAYMENT PROCESSORS

[shizui04421]

Hi, has anyone worked recently with Honk Kong LLCS? i have a service that works as a "broker" between sellers and buyers, my goal is to being able to accept as many payment options possible and to send money with as many payment options possible.
NOTE: we have high chargebacks % because our website is mainly used to young people who take cards from their parents.

 

[Sols]

What you're describing is a money service business of some sort, which probably requires a license in Hong Kong (MSO license). Combined with high chargebacks, this would be a nightmare for a payment processor.

I'd start by lowering the chargebacks, see if crypto would work, and see if a license is necessary.

Where are your customers located?

 

[shizui04421]

What you're describing is a money service business of some sort, which probably requires a license in Hong Kong (MSO license). Combined with high chargebacks, this would be a nightmare for a payment processor.

I'd start by lowering the chargebacks, see if crypto would work, and see if a license is necessary.

Where are your customers located?

Nono, no license, i see a lot of people offering this service and dont require a license, mostly is buying and selling products and we only help sellers find their customers and buyers find their products by taking a fee, so this is important to have many payment options

 

[avalanche]

What you're describing is a money service business of some sort, which probably requires a license in Hong Kong (MSO license). Combined with high chargebacks, this would be a nightmare for a payment processor.

I'd start by lowering the chargebacks, see if crypto would work, and see if a license is necessary.

Where are your customers located?

It looks like shizui04421 is running a marketplace

 

[Sols]

A marketplace that holds the money (takes money from buyer and gives it to the seller) rather than facilitate direct P2P payment between buyer and seller is offering a financial service and holding a balance. It might be that Hong Kong doesn't regulate it at the moment, though. However, some payment methods and payment processors based in locations where it is a regulated activity (such as EU), may require a license in order to offer processing services.

Speak with Nuvei, Zen, Adyen, and Paymentwall and see what they say.

Even if a license (or something similar) isn't required, the high chargebacks are going to be a much bigger problem anyway.

 

[clemens]

Why this is posted under offshore company ?

 

[avalanche]

A marketplace that holds the money (takes money from buyer and gives it to the seller) rather than facilitate direct P2P payment between buyer and seller is offering a financial service and holding a balance. It might be that Hong Kong doesn't regulate it at the moment, though. However, some payment methods and payment processors based in locations where it is a regulated activity (such as EU), may require a license in order to offer processing services.

Speak with Nuvei, Zen, Adyen, and Paymentwall and see what they say.

Even if a license (or something similar) isn't required, the high chargebacks are going to be a much bigger problem anyway.

It may be classified as escrow services. Interesting by the way, I'm also planning to launch my own marketplace and I'm curious if license is needed;

I've seen though some marketplaces of digital products and haven't noticed them publishing any license on their website.

 

[Sols]

It may be classified as escrow services. Interesting by the way, I'm also planning to launch my own marketplace and I'm curious if license is needed;

I've seen though some marketplaces of digital products and haven't noticed them publishing any license on their website.

Aside from simply facilitating P2P payments where you don't insert yourself as a middle layer, an easy way to avoid licensing is to work with a payment processor that has a digital marketplace platform solution. Stripe and Adyen have the best that I've seen.

Platforms | Payment solution for marketplaces and platforms

Manage your global marketplace or platform in one place. Easily sell, get paid, and pay out as fast as you need.

www.adyen.com

Die Zahlungslösung für Ihren Marktplatz | Stripe Connect

Stripe Connect ist die schnellste und einfachste Möglichkeit, Zahlungen und Finanzdienstleistungen in Ihre Plattform oder Ihren Marktplatz zu integrieren.

stripe.com

They hold the money owed to the sellers by the buyers. The marketplace itself doesn't hold that money. It only withdraws its commission.

Licensing is probably not necessary in many parts of the world, for now. I believe EU was the first big mover in regulating marketplaces as financial service providers (PSD2). Their reasoning is that holding money is a financial service and there is a money laundering risk in marketplaces. E..g, you could collude with someone on a marketplace to launder money by buying something from them with stolen money. The seller gets clean money from the marketplace.

 

[clemens]

E..g, you could collude with someone on a marketplace to launder money by buying something from them with stolen money. The seller gets clean money from the marketplace.

very common way to clean money in small sizes. I agree it would be better to use a platform from the big players in the market to avoid all the trouble with KYZ and Moneylaundering regulations.

 

[avalanche]

Aside from simply facilitating P2P payments where you don't insert yourself as a middle layer, an easy way to avoid licensing is to work with a payment processor that has a digital marketplace platform solution. Stripe and Adyen have the best that I've seen.

Platforms | Payment solution for marketplaces and platforms

Manage your global marketplace or platform in one place. Easily sell, get paid, and pay out as fast as you need.

www.adyen.com

Die Zahlungslösung für Ihren Marktplatz | Stripe Connect

Stripe Connect ist die schnellste und einfachste Möglichkeit, Zahlungen und Finanzdienstleistungen in Ihre Plattform oder Ihren Marktplatz zu integrieren.

stripe.com

They hold the money owed to the sellers by the buyers. The marketplace itself doesn't hold that money. It only withdraws its commission.

Licensing is probably not necessary in many parts of the world, for now. I believe EU was the first big mover in regulating marketplaces as financial service providers (PSD2). Their reasoning is that holding money is a financial service and there is a money laundering risk in marketplaces. E..g, you could collude with someone on a marketplace to launder money by buying something from them with stolen money. The seller gets clean money from the marketplace.

Problem of Stripe Connect it will probably limit the number of countries where your sellers may be from

 

[Sols]

Problem of Stripe Connect it will probably limit the number of countries where your sellers may be from

It's the same with Adyen. They are limited in what markets they can offer their services based on what licenses they hold.

 

[shizui04421]

It looks like shizui04421 is running a marketplace

correct

 

[shizui04421]

It's the same with Adyen. They are limited in what markets they can offer their services based on what licenses they hold.

i tried to apply for airwallex but my request has been denied, while i see a competitor of mine doing the same business with airwallex, why ? how does it even make sense

 

[cryptounions]

i tried to apply for airwallex but my request has been denied, while i see a competitor of mine doing the same business with airwallex, why ? how does it even make sense

maybe your monthly volumes are too small?

 

[Sols]

i tried to apply for airwallex but my request has been denied, while i see a competitor of mine doing the same business with airwallex, why ? how does it even make sense

As @cryptounions wrote, it might be that your business is too small.

But there are many, many other possible reasons why you were declined. Only Airwallex knows for sure.

 

[shizui04421]

maybe your monthly volumes are too small?

the monthly transactions are around 700/800k monthly, also my competitor has this payment option.

 

[tinasa]

It depends mainly on what business you are, I may have the payment you need

 

[JohnLocke]

I've seen though some marketplaces of digital products and haven't noticed them publishing any license on their website.

Depends on how big they are going to be. If the business is growing into the millions a license will be required. Everything else will ask for trouble.