This is sort of not relevant to programming but I think it also is:
MY site is being built around people selling products through the site and customers buying the product through it. I’ll then shave a % off the top of the sale.
As far as skimming a % of the sale off the top, what is the order of events that should take place to do that?
Should the customer pay me then I pay the seller the remaining amount?
or
Should I let the customer pay the seller directly, then I charge the seller?
or…?
I know paypal blows hard, but what other choices are there? I’m NOT setup to store CC info on my server.
The site is built around php if it’s relevant.
Handling the transaction yourself will probably get you all sorts of attention from the tax authorities – usually not a good idea, as it tends to generate tons of paperwork and liabilities (like warranty claims) for little gain.
The usual way is to charge either buyer, seller, or both a fee. Which way is best totally depends on the market you’re serving, and your position in that market.
Credit card merchant accounts are a (often cheaper) alternative to PayPal, but most are very expensive.
Other alternatives:
Micropayment processing using Paypal or other payment processing service?
Which should I implement first, PayPal or Google Checkout, on my eCommerce website
How to pay your users? (alternatives to PayPal)