The Silicon Cape Initiative

How long can a payment gateway/ bank reserve a customers credit card payment?

Hi

Im trying to see if any of the online payment gateway systems allow for holding a payment in reserve for up to 3 months at a time. Similar to how the car rental companies hold your deposit until you return your car.

Does anyone have any advice or companies I can speak to?

Thanks

Rich

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Replies to This Discussion

Permalink Reply by Marco-Hans Van Der Willik on February 22, 2012 at 11:31

In my experience Banks often have very archaic systems and often give bad technical service. I cannot answer this question but I highly recommend avoiding any complex interaction with banks.

Permalink Reply by Jess Green on February 27, 2012 at 11:24

For this you'll have to have a merchant account, which is not so easy to get. Next, you'd need to have some sort of special arrangement - I've never heard of this been done before. I looked into holding payments when I started UbuntuDeal.co.za, because the deal shouldn't tip until a minimum number of buyers is reached, regardless of when they pay.

So, I would say that unless it's critical, try to think of doing it another way.

Permalink Reply by Richard Rubenstein on February 28, 2012 at 9:13

Thanks Jess, will look into it

Permalink Reply by Quinton Carroll on February 28, 2012 at 7:43

Hi Rich

I think that what you may be looking for is an Escrow service

escrow.com is one, but I don't know how long they will hold your funds for.

Basically, the transaction is something like this...

1. Buyer offers to buy something

2. Buyer deposits money in escrow

3. Escrow service notifies seller that money is waiting and is legit

4. Seller sends goods with tracking info

5. Escrow service verifies that buyer has received goods

6. Buyer accepts that transaction can close

7. Escrow service pays seller

I don't know if this can be customized, but you can ask.

Good luck

Permalink Reply by Richard Rubenstein on February 28, 2012 at 9:12

Thanks!

Will have a chat with the guys

Permalink Reply by Aidan Classe on February 29, 2012 at 15:17

Hey Rich, good to see you on here.

Give Owen or Barry a call at PayGate, if I remember correctly they have auto-settle enabled by defafult but it can be turned off.  They'll be able to tell you how long they can hold reservered payments for.

Cheers,
Aidan

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