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Salty

Member
Jun 6, 2012
642
406
That's fine but if you want to hold money in escrow you need to, sorry should follow correct procedure. The ATO wouldn't want it any other way. I referred to non profit because you stated that's how you wanted to conduct yourself "not profit"
 

The Reefuge

Administrator
Jul 9, 2011
4,152
1,929
That's fine but if you want to hold money in escrow you need to, sorry should follow correct procedure. The ATO wouldn't want it any other way. I referred to non profit because you stated that's how you wanted to conduct yourself "not profit"
Hello @Salty,

It was this instance that is not for profit. Other aspects of the site are for profit (such as business services). However looking at the thread and points made by users, it does seem like a lot of work for no gain on our behalf and the risk of being held responsible for a group buy. The last thing this community would need is to get wound up in legal trouble due to someone doing the wrong thing.

However, if paypal does provide such a feature we can always use it for group buys through their API.

Thanks.
 

rockerpeller

Member
Oct 14, 2011
1,261
436
Hastings, Vic
Hello @rockerpeller,

If paypal provides a service like this it would be even better. I can simply patch into their API and set up a program for The Reefuge members to put group buy orders through. If the business does not provide stock, it is paypals problem. If the users pull out, it is paypals problem. I will look further into this.

Thanks.
This is exactly what paypal does. It gives buyers 45days to recieve stock/services that they have paid for. The buyer pays for the items with their paypal account which is transferred to the sellers account. If the stock does not show up, the buyer can apply for a payment dispute (within the 45days), then Paypal will then reverse the payment.
Well thats what it does in Laymans terms anyway. I haven't had to launch a payment dispute yet, but maybe someone on here may have and can supply the details.
 

MagicJ

Moderator
Jul 11, 2011
9,650
3,761
Hobart, Tasmania
Paypal do not immediately reverse the payment - the seller is given some time (14 days I think) to resolve the matter - if the buyer is still not happy then they can proceed with the dispute.

I lodged a dispute once because the item had not been received from a Chinese based ebay seller - my money was refunded with 24 hours :)

The theory behind the proposal is good, but I think the practicalities may be somewhat more difficult. With Group Buys we are trying to use our collective bargaining power to achieve reduced prices on products, or to share in the, sometimes, high postage costs. The majority of GB's I have been involved in have been with an overseas retailer so the escrow idea would not work. For locally based businesses, I imagine that the profit margin on the GB's would be slim so having the cash in the bank when the order is placed is probably the only benefit they get out of the transaction.
 

Reef6

Member
Jul 29, 2012
118
64
Gladstone
I like the idea, but I don't think the structure will ever allow it to work..
Say you have a group buy for 20 Items/Buys at $500 (to the supplier) that's $10000 that the supplier will have to shell out to the wholesaler, then the supplier would have to wait for the wholesaler to release the items to get paid.. Not sure about everybody but I couldn't do this..
The problem with Paypal is that Businesses get charged 2.7% (I think) for every transaction, so losing out more on the little profits made on a GB..
The only real way for it to work would be for the business to set up a separate business account and to have The Reefuge and another person as a signatories to transfer the funds out of that account to the wholesaler. This way the money is still always in the businesses name not the Reefuge.. But that then has the limitations that you are then trusting the wholesaler with the money and the business will have an open book to those 2 members. Also then the supplier will know who The Reefuge is.. lol.. You also limit the items that can be included in the GB..
sorry just spit balling, but that ends up being a lot of hassle..
 

chimaera

enjoy the little things
May 13, 2012
5,473
2,295
Sandringham
I think using Paypal is the simplest way forward with this. All risk is mitigated, there is no middle man (except perhaps the trusted TR member who takes payment from others and funnels through to the supplier), and there is a clear resolution to a dispute.

I don't know how the GB in question was paid for, but if it was via Paypal I would have already filed a dispute, personally.
 

RobbieMVFC

Member
Feb 25, 2013
1,232
610
Guys , Just a word of advice .If you pay someone by credit card and the do not supply you with the goods or were not as described. You have a few options.
1st thing you should do I contact the seller and try to negotiate with them.
If the seller is not providing you with the goods/items or they were not as described you can do a few things, that is if the seller negotiate with you.
You can
• Contact consumer affairs for your state .
• You can contact your bank and request a charge back (only for credit cards) . in other words get your money back.
Note there is a time frame for this option . I think its 90days but check with your bank.
Credit cards have insurance.