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Let's assume that there are 4 people.

1.Supplier ( or shopkeeper)
4.Third Party Org (like, PayPal or other third party)

Let's assume that those 4 people are at a region which can get online banking system. So, As for supplier what he need to do to sell his product? If you will say he will need to make merchant account at bank, then, at the same time, does he need to make PayPal account? Then why does he need it?

How about for customer? Does he also need to make both PayPal and Bank Account? If so, how two of these PayPal and bank accounts work together?

As for bank, does it also need to create PayPal account? If bank don't need to create PayPal account , how bank will inter-operate with its clients who has PayPal account?

As for third party business flow, I will understand if you give me answer for above questions.


Let me make more clarify about that.

  1. As for customer, he need both Paypal and Bank Account(or Credit Card No) to make payment.
  2. Paypal will take money from customer's bank Account and put it to Paypal account to give product supplier.
  3. Then, product supplier only need to have Merchant Account at Bank. (Don't need any Paypal Account).

So How could I make sure that Paypal transfer these money to Product Supplier Account(Merchant Account)?

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1 Answer 1

up vote 1 down vote accepted

Your end customers want to send you money over the internet. They can't send cash, so they either need paypal account, bank account details or (typically) payment card issued by their bank (such as Visa or Mastercard)

You want to receive money. You need a bank account. You would also need a 'merchant account' with the same bank. This defines you as being a retailer, and gives you a 'merchant account number' amongst other details, which you will need when you speak to the person between you and the customer:

The payment gateway. They take money from the customer and put it into your bank account. How they take money will vary depending on what they offer. Some will accept Paypal, most will accept Visa/Mastercard. Some will work with Bank A, B and C, but not with banks Y or Z. Choose your gateway depending on what YOU need it to do, and ensure it hooks up to a bank that you're happy to use.

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Thank for you answer @PaulG, It is useful. But I would like to make more clarify. –  Frank Myat Thu Nov 25 '11 at 3:29
As for money receiver, you say that he need merchant account at bank.So Doesn't he also need to create PayPal Account? –  Frank Myat Thu Nov 25 '11 at 5:41

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