Alternative Venmo/Paypal MS Idea - Thoughts?

Old Oct 28, 18, 9:31 pm
  #1  
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Join Date: Oct 2018
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Alternative Venmo/Paypal MS Idea - Thoughts?

Was wondering if the following strategy would work as an alternative to Venmo/Paypal'ing a friend:
  1. Create fake eCommerce website under a sole proprietorship with it's own EIN and DBA name (not your first and last name).
  2. Register the business address via a local UPS business mailbox so that it isn't the same address as your home address.
  3. Open a business checking account and order physical checks.
  4. Purchase one or several products/services on this created website with the card you are trying to hit the MSR on.
  5. The sale amount less 3% Stripe processing fee is deposited from Stripe and into your business checking account.
  6. Mark the order as "refunded" on the backend of the website for record keeping and send a refund to yourself via alternative payment method (physical check) and not via Stripe. This would effectively wash the tax obligation of the "sale" and give you the funds (97% of it) to pay off the charge on the card you are MS'ing.
Thought this could be a way to be Uncle Sam compliant but not be as an obvious MS attempt as Venmo and Paypal to major card issuers.

Last edited by Keyser.Soze; Oct 28, 18 at 9:47 pm Reason: grammar
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Old Oct 29, 18, 12:49 am
  #2  
 
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If you're willing to pay 3% in fees, there's a lot easier ways to do this.
TalkingPoint is offline  
Old Oct 29, 18, 7:07 am
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Join Date: Sep 2016
Posts: 127
Originally Posted by Keyser.Soze View Post
Was wondering if the following strategy would work as an alternative to Venmo/Paypal'ing a friend:
  1. Create fake eCommerce website under a sole proprietorship with it's own EIN and DBA name (not your first and last name).
  2. Register the business address via a local UPS business mailbox so that it isn't the same address as your home address.
  3. Open a business checking account and order physical checks.
  4. Purchase one or several products/services on this created website with the card you are trying to hit the MSR on.
  5. The sale amount less 3% Stripe processing fee is deposited from Stripe and into your business checking account.
  6. Mark the order as "refunded" on the backend of the website for record keeping and send a refund to yourself via alternative payment method (physical check) and not via Stripe. This would effectively wash the tax obligation of the "sale" and give you the funds (97% of it) to pay off the charge on the card you are MS'ing.
Thought this could be a way to be Uncle Sam compliant but not be as an obvious MS attempt as Venmo and Paypal to major card issuers.
Let me guess - you like to overthink things?
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Old Oct 29, 18, 9:22 am
  #4  
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Originally Posted by TalkingPoint View Post
If you're willing to pay 3% in fees, there's a lot easier ways to do this.
Was trying to be creative and fly under the radar. What other options would you suggest?
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Old Nov 12, 18, 12:40 am
  #5  
 
Join Date: Sep 2014
Posts: 597
Originally Posted by Keyser.Soze View Post
Was wondering if the following strategy would work as an alternative to Venmo/Paypal'ing a friend:
  1. Create fake eCommerce website under a sole proprietorship with it's own EIN and DBA name (not your first and last name).
  2. Register the business address via a local UPS business mailbox so that it isn't the same address as your home address.
  3. Open a business checking account and order physical checks.
  4. Purchase one or several products/services on this created website with the card you are trying to hit the MSR on.
  5. The sale amount less 3% Stripe processing fee is deposited from Stripe and into your business checking account.
  6. Mark the order as "refunded" on the backend of the website for record keeping and send a refund to yourself via alternative payment method (physical check) and not via Stripe. This would effectively wash the tax obligation of the "sale" and give you the funds (97% of it) to pay off the charge on the card you are MS'ing.
Thought this could be a way to be Uncle Sam compliant but not be as an obvious MS attempt as Venmo and Paypal to major card issuers.
Opening a business bank account is not always easy.

Unlike personal where you walk in (or even go online), complete the process in < 30mins and leave with a free gift or something, banks often take a much harder look at business accounts.

You may be asked all sorts of questions as to type of business, all sorts of supporting documents requested, and so forth. This only to be told "no" we don't want your business.

Another thing business bank accounts often require relatively high minimum daily balances. This and or can be rather heavy on fees.

You might be able to find a "free" business checking account online or locally, but read the fine print.
https://www.fundera.com/blog/free-business-checking
BugsyPal is offline  
Old Nov 12, 18, 3:16 pm
  #6  
 
Join Date: Feb 2009
Posts: 7
As a business owner that uses Square for cc processing. When I really need to meet a ms, I will have the business swipe my personal card for the amount I need. In the books, it is recorded as a loan from the owner. The next day I write a check back to myself to pay back the loan. It works but you have the fees to consider. Verified by my CPA that I could legitimately do this type of transaction.
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