A website that allows persons to deposit money in advance of purchases.

[ashtonG]

Hello,
I have an internet retail business and I would like to know whether I can allow users to deposit money to their account ( with the internet company) in advance of making a purchase so that future purchases can simply be deducted from their account balance.

Thanks in advance for your response.

 

[Zigner]

Hello,
I have an internet retail business and I would like to know whether I can allow users to deposit money to their account ( with the internet company) in advance of making a purchase so that future purchases can simply be deducted from their account balance.

Thanks in advance for your response.

Sorry, this forum is for US law questions only.

 

[ashtonG]

I was wondering if there is any US law that exists the prohibits me from implementing such a feature.
thanks again.

 

[Zigner]

I was wondering if there is any US law that exists the prohibits me from implementing such a feature.
thanks again.

What state are you in?

 

[ashtonG]

The state is Delaware

 

[FlyingRon]

If it is just prepaying purhcases at your site, it is legal. The key thing is not to do anything that would make it appear you are operating a bank.
Paypal walks that tightrope constantly.

 

[ashtonG]

Thanks very much for your response

 

[single317dad]

To expand: look at a system like Facebook uses. All purchases made on Facebook must use Facebook Credits. Credits are purchased for cash on the Facebook site. Facebook is no longer "in possession" of your money, as credits are not cash and are not redeemable for cash. Many online games use a similar system: buy non-refundable credits with cash, and spend them later on game-related items.