Hello Rodinhoods,
I run an on-demand service for home tutoring – LearnMor.com
We are currently using a payment gateway in a traditional sense, where once a student makes a payment through our payment gateway it comes to our account. We then take a cut and bank transfer the fee to the tutor immediately.
There are two issues with this:
1) It is not clear for the student when to make the payment – at the start of the classes or at the end.
2) It is prone to students disappearing, without paying after a few classes or tutor disappearing after the payment is received.
We would like to avoid these risks by setting-up an escrow based payment. The student makes the payment as soon as the tutor is hired, we will keep the payment and will release the payment once the student finishes the classes. That way both student and the tutor is protected. This is similar to how Odesk.com or Elance.com does it.
Here’s what I need help with:
1) I would like to know if there are any regulations AGAINST setting up escrow payments in India?
2) If we can, should I change my payment gateway to something like Paytm or PayU?
Thanks,
Tarun
Twitter: @tarunmor
