I'm in the same boat as you - about to launch a subscription service.

>From my research, every merchant account I looked into required a personal
guarantee. So it seem standard. Regarding PayPal - there are lots of scary
stories out there about people getting burned. Particularly, PayPal will
freeze your assets without warning. So user beware.

I finally settled on http://www.braintreepaymentsolutions.com/ They're
wonderful so far. The best part is they "get" developers.

Tyler

On Thu, Aug 5, 2010 at 3:08 PM, Scott Morrison <[email protected]> wrote:

>
>
> Hi Gautam
>
> Why not use a payment processor such as esellerate or fastspring -- I know
> that Esellerate does subscription payments. I have just heard of too many
> people get burned by paypal.
>
> Scott
>
> ________________________________
> Scott Morrison <[email protected] <smorr%40indev.ca>>
> Revolutionary plug-ins for OS X Mail.app
> http://www.indev.ca/
>
>
> On 2010-08-05, at 4:01 PM, Gautam Godse wrote:
>
> > Oh no. They asked for all our personal bank account info as well. In
> fact, they will also do a site survey - that is, they will send a
> underwriter to your office or house to verify this is a real business and
> real people..
> >
> > Seems to me, it might be easier to use Paypal to accept credit card
> payments..
> > Will be definitely checking with our lawyer..
> > thanks for the feedback..
> > --
> > gautam
> >
> > On Aug 5, 2010, at 12:30 PM, Tom M. Blenko wrote:
> >
> >>
> >> Yeah, check with the lawyer. Because some of what is said below is
> >> wrong in the US, a corporation (much less a business registration) by
> >> no means provides iron-clad protection of your personal assets.
> >>
> >> You've got a small business. Merchant accounts are very good
> >> candidates for abuse. The issuer is usually just a marketeer acting
> >> as a front end for the processor. They're at risk for your behavior
> >> and that's why you'll find lots of different policies for fees,
> >> crediting you with proceeds of transactions, and checking your bona
> >> fide's. I'm not at all surprised that they want you to guarantee your
> >> small company (which is worth nothing to them), I'm more surprised
> >> that they aren't asking for your bank account numbers and lots of
> >> additional personal data to make it clear (to you) that you won't be
> >> able to process a bunch of fraudulent transactions, collect the
> >> proceeds, and then vanish into the night.
> >>
> >> Tom
> >>
> >> On Aug 5, 2010, at 12:11 PM, Rafael Bugajewski wrote:
> >>
> >>> Hi Gautam,
> >>>
> >>> the best thing to do in your case is to contact a lawyer. Such
> >>> clauses can have different meanings and effects in different
> >>> countries.
> >>>
> >>> In a lot of countries it also depends on the type of business you
> >>> have registered. Even if they have such a clause, but you
> >>> registered a business where you take no personal liability, they
> >>> cannot demand the money / assets.
> >>>
> >>> Once again: the best thing you should do in this situation is to
> >>> contact your lawyer. Even if you have a relatively new company with
> >>> much less income it is worth to have a lawyer who can give you advice.
> >>>
> >>> Best,
> >>>
> >>> Rafael
> >>> *currently free for a dev job*
> >>>
> >>>
> >>> On 05.08.2010, at 20:46, Gautam Godse <[email protected] <gagix%40mac.com>>
> wrote:
> >>>
> >>>> hi all,
> >>>>
> >>>> I am trying to setup a merchant account for online CC transactions
> >>>> for my new startup (www.gingercube.com). The product will be a
> >>>> monthly subscription based service.
> >>>>
> >>>> We are a new company with less than couple of months of existence
> >>>> and financial history.
> >>>>
> >>>> So when we applied for a merchant account with ChasePaymentech
> >>>> (using Spreedly.com as our front end biller) their application
> >>>> form has a Personal Guaranty clause that essential states that if
> >>>> the corp (gingerCube Inc) goes under, then the merchant can come
> >>>> after our personal assets for any outstanding payments that they
> >>>> are owed.
> >>>>
> >>>> Is this a standard clause ? Do most merchants require this ?
> >>>>
> >>>> And is there a better alternative for what we are trying to achieve ?
> >>>>
> >>>> Thanks for your help!
> >>>> ---
> >>>> Gautam Godse
> >>>> MacMessiah.com
> >>>>
> >>>>
> >>>>
> >>>> ------------------------------------
> >>>>
> >>>> MacSB email guidelines: http://tinyurl.com/2g55d6
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> >>>> group/macsb-talk
> >>>> Yahoo! Groups Links
> >>>>
> >>>>
> >>>>
> >>>
> >>>
> >>> ------------------------------------
> >>>
> >>> MacSB email guidelines: http://tinyurl.com/2g55d6
> >>> Use MacSB-Talk for off topic messages: http://groups.google.com/
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> >>> Yahoo! Groups Links
> >>>
> >>>
> >>>
> >>
> >>
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
> >
> >
> > ------------------------------------
> >
> > MacSB email guidelines: http://tinyurl.com/2g55d6
> > Use MacSB-Talk for off topic messages:
> http://groups.google.com/group/macsb-talk
> > Yahoo! Groups Links
> >
> >
> >
>
> [Non-text portions of this message have been removed]
>
>  
>


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