I'd like to create a service similar to Patreon, I know how to do the technical side but not so sure about financial side: how do I charge users to send the funds to other type of users (creators), while subtracting a small percent? How does it need to be set up from the POV of financial compliance? Can it be reported as "payment to support Creator xyz" without a specific product? Does the company need to register as a bank or something similar to a bank? Financial services company? Where can I find some relevant resources, and how can I narrow down my research so that I don't have to read everything about all types of financial services but only more or less relevant info? (located in the US).
Ask HN: How to create a service similar to Patreon?
1–10 of 97 posts
Re: Ask HN: How to create a service similar to Patreon?
#2Take a look at Stripe Connect
Re: Ask HN: How to create a service similar to Patreon?
#3There was an alternative named Hatron that used Visa until Visa pulled services because they funded conservatives. Libertarians, and white nationals.
So contact the credit card companies and watch who you fund.
Re: Ask HN: How to create a service similar to Patreon?
#4This is a really hard problem. You do not want to have to register as a bank or hire an expensive compliance team. Use Stripe.
Re: Ask HN: How to create a service similar to Patreon?
#5There is absolutely no shortcut in this things. As soon as you are paying users there will be all sort of legal requirements/side effects which you need to be aware of. Starting with money laundering, taxes (yours and from your users even!), pleasing your payout provider that your content is not illegal, beeing able to payout in US&Europe or even global and ending with costs (you will probably never be able to compete with 5% from patreon).
The thing is that all this risks apply mostly to your payout provider (this is why it is a hard problem, it's not only your risk alone). Good luck in finding a good partner.
I'm betting that sites like Patreon have developed this things from scratch and in-house.
Re: Ask HN: How to create a service similar to Patreon?
#6there is an uncensored version using Bitcoin at bitpatreon
Re: Ask HN: How to create a service similar to Patreon?
#7There is absolutely no shortcut in this things. As soon as you are paying users there will be all sort of legal requirements/side effects which you need to be aware of. Starting with money laundering, taxes (yours and from your users even!), pleasing your payout provider that your content is not illegal, beeing able to payout in US&Europe or even global and ending with costs (you will probably never be able to compet…
One question (since I do like shortcuts) -- what about if you have uses pay each other (through whatever means is available to them), and only act as the sort of negotiation point? Here's what I'm thinking:
- user signs up
- user registers x supported payment accounts (Paypal, Venmo, etc)
- when a user wants to pay another user on their site, you send them to the appropriate payment provider with the details of the other user
- take confirmation from user that received payment and use it to update "trustworthiness" scores for both users.
This seems like it could work as a way to sidestep some of the legal requirements?
Though the amount of value the OP's company offers is a little lower (since you're not handling payments), I think the other benefits (discoverability, concentration of information, etc) that patreon offers are still seemingly on the table. Fraud of course is still an issue, but the upside is you can punt that to whatever payment provider they specify.
Re: Ask HN: How to create a service similar to Patreon?
#8There is absolutely no shortcut in this things. As soon as you are paying users there will be all sort of legal requirements/side effects which you need to be aware of. Starting with money laundering, taxes (yours and from your users even!), pleasing your payout provider that your content is not illegal, beeing able to payout in US&Europe or even global and ending with costs (you will probably never be able to compet…
One question (since I do like shortcuts) -- what about if you have uses pay each other (through whatever means is available to them), and only act as the sort of negotiation point? Here's what I'm thinking: - user signs up - user registers x supported payment accounts (Paypal, Venmo, etc) - when a user wants to pay another user on their site, you send them to the appropriate payment provider with the details of the o…
Patreon does this automatically. I, as a patreon, do not want to be sent somewhere each month to confirm my payment.
Re: Ask HN: How to create a service similar to Patreon?
#9[deleted]
Re: Ask HN: How to create a service similar to Patreon?
#10There is absolutely no shortcut in this things. As soon as you are paying users there will be all sort of legal requirements/side effects which you need to be aware of. Starting with money laundering, taxes (yours and from your users even!), pleasing your payout provider that your content is not illegal, beeing able to payout in US&Europe or even global and ending with costs (you will probably never be able to compet…
One question (since I do like shortcuts) -- what about if you have uses pay each other (through whatever means is available to them), and only act as the sort of negotiation point? Here's what I'm thinking: - user signs up - user registers x supported payment accounts (Paypal, Venmo, etc) - when a user wants to pay another user on their site, you send them to the appropriate payment provider with the details of the o…
How would you get paid in that scenario?