Ok, I offer certain customers the freedom to sell items on consignment from time to time. One of the items that is being offered has received some attention lately and the buyer wants to pay with credit card.

Since this is on consignment, I dont really want to deal with it, but was wondering if I could help them out by accepting payment from the buyer by credit card. To pay the seller, would I be able to "refund" the payment money to his card?

Is this kinda thing possible? Allowed?

2/5/2008 12:07:47 AM

trying being more vague, that should help

2/5/2008 12:09:01 AM

At our retail location we have a standard credit card machine.

Buyer wants to pay seller but only has credit card.

Can I process a transaction where the buyer basically pays me, using my credit card machine, but then I refund the payment amount to the seller's debit card account?

2/5/2008 12:14:30 AM

do you not have enough liquid cash to accept the payment and pay the seller? you are a broker - isn't that your job?

2/5/2008 12:16:26 AM

cant you get monies out of the atm with a credit card? why dont they do that...sounds like a possible scam

2/5/2008 12:19:18 AM

^x4 seriously.

technically, you can make a Sale Transaction to the buyer, and then a Credit Transaction to the seller. be aware that this will probably cost YOU money in transaction fees, and i have no idea if it is legal.

i've never worked retail, but i have done plenty with paypal's payflow system and you cannot do a credit with an unreferenced transaction. if it's the same way with retail credit card machines you might have to reference some previous transaction where the seller spent at least as much as the item in question.

really this can't be worth the trouble to you unless you owe this guy a favor.

[Edited on February 5, 2008 at 12:20 AM. Reason : ^]

2/5/2008 12:20:06 AM

Normally we dont keep that much cash on hand

I wouldnt think of doing this for anyone other than someone or two people in this case that I trust. The two dont know each other otherwise and havent met. This is also part of the issue. The seller is rarely in town, but has his card on file.

eh...looks like too much of a hassle, thanks anyways

2/5/2008 12:22:25 AM

alternatively you could buy the item from the seller with a check, then sell it to the buyer with his credit card.

or these two guys could get a paypal account.

or they could just write checks to each other.

2/5/2008 12:29:23 AM

this transaction sounds totally legit

2/5/2008 12:37:41 AM

tell them you'll do it, but add a service fee to one or the other to cover the transaction cost.

2/5/2008 4:25:33 AM

All three of you should just setup Paypal accounts - it'll take you 10 minutes apiece (if that) and your'e done!

2/5/2008 6:34:21 AM

This concludes lesson #74 in the series "101 ways to launder money".

2/5/2008 6:39:18 AM

This doesn't involve someone from Nigeria and surplus funds, does it?

Seriously though, it shouldn't be that hard. Easiest way to do it would be: Buyer pays you by credit card. You wait a couple days until the monies appear in your account. Then you pay the seller by check or with cash.

Why won't that work?

2/5/2008 10:52:57 AM

i vote paypal

2/5/2008 11:06:10 AM

I bought a car at a dealer this way, so I'd assume it's legal.

Dealer didn't take checks or debit/credit cards. And I didn't have a loan ready for myself.

So I paid his buddy at the mechanic shop next door on debit, and the mechanic credited the dealer's account with him in that amount.

The buyer will want written confirmation before the deal is done. I made the dealer sign something to the effect of "Buyer's debit card payment to Mechanic will satisfy all payment obligations that the buyer has to the dealer."

[Edited on February 5, 2008 at 11:26 AM. Reason : a]

2/5/2008 11:26:18 AM

Suncom did this for me.

I paid them for a phone with cash, then returned it, unfortunately since I had not read the return policy I found out that cash refunds over $200 had to be mailed from corporate via check.

The guy that had sold me the phone got permission to run it through the credit card machine as a refund and it posted to my account two days later. They did not have to do this, but it sure as fuck helped me out because I needed the money to buy a phone somewhere else.

2/5/2008 1:03:32 PM

yes

if you've got a merchant account, you can do it

process the one dude's card

then refund the $ back onto the other dude's card

it's not too hard

2/5/2008 5:48:21 PM