Intermediary payments services (IPs) are a popular way for online retailers to make payments for their customers.
The services are available for small businesses and small- to medium-sized businesses, and the fees can range from 5 to 40 per cent depending on the type of business.
The main drawback is that they’re very difficult to understand and track.
How to make an intermediary payment in Ireland How to use an intermediary online payment service: Find out if you qualify for a small business credit.
You can’t charge the business an amount higher than the tax rate (30 per cent of the value of the goods or services) on your own website, but you can pay by email, through PayPal or direct debit to your bank account.
You may also be able to use another service like credit card, which charges you an additional 20 per cent on top of the transaction.
You must also check that the service you’re using doesn’t have a high commission (typically between 25 and 50 per cent) and that you’re not receiving any fees from the intermediary, which could mean they’re a scam.
How you can make an intermediate payment on a site you’re on: Pay to make a transaction on a third-party website.
You should check with the company you’re purchasing the goods from to ensure that they meet the requirements for intermediary payments.
Find out the fees associated with the service and check the service is reputable.
You’ll need to contact the intermediary directly to make your payment, and make sure the company can provide a bank statement.