Payment agent: Audit and buying crypto to send it to main company?

[Boxer]

I'm looking to establish payment agent in Cyprus or Estonia to accept payments through Stripe and PayPal from my European customers.


But wasn't able to find answers to a few questions yet:
1) If the company received payments from Stripe / PayPal and then withdraw money to EMI, then can pass audit only on EMI transactions?
Because for each small transaction from customer (5-10-15 EUR) need to pay 0.20$ in audit looks not favourable.
But why then big companies make payment agents if audit costs is like same as accepting those payments from UK entity for example with same +0.20$ Visa/MC fee? Because the difference between UK and EU processing cost for EU customers is no more than 1%. 1% from let's say 15 EUR = 0.15$.

2) Can the payment agent company withdraw to EMI, buy crypto and then send to parent company? EMI allows to buy crypto.
I see no problems with that, but if any pitfalls in such scheme?

 

[daniels27]

1) The cost of the audit is not per transaction. If you have 1M transactions and all are about the same in nature, the audit cost will most likely not be more than if you just have 50 of those. You are free to find any auditor that can do the work for you at reasonable cost. Also big companies, do not process in Cyprus or Estonia. They use Ireland or Switzerland traditionally. Also, most often, they process well above 100 USD per sale, hence the savings on interchange fees are substantial at 1% in the EU vs. 3% in the US.

2) The payment agent will use a payment processor. They normally disburse in FIAT and you are then free to convert it to crypto or gold and send it further to your company in the Cormoros Island. Just don't expect your auditor to be very happy. Also, the government may at some point investigate your money laundering scheme if you do not pay taxes properly in the Cormoros.

You have been warned.

 

[Boxer]

1) The cost of the audit is not per transaction. If you have 1M transactions and all are about the same in nature, the audit cost will most likely not be more than if you just have 50 of those. You are free to find any auditor that can do the work for you at reasonable cost. Also big companies, do not process in Cyprus or Estonia. They use Ireland or Switzerland traditionally. Also, most often, they process well above 100 USD per sale, hence the savings on interchange fees are substantial at 1% in the EU vs. 3% in the US.

2) The payment agent will use a payment processor. They normally disburse in FIAT and you are then free to convert it to crypto or gold and send it further to your company in the Cormoros Island. Just don't expect your auditor to be very happy. Also, the government may at some point investigate your money laundering scheme if you do not pay taxes properly in the Cormoros.

You have been warned.

Thanks for the answer.

1) For the audit I heard that they need to check each transaction despite it's the same nature so the price is still high.

2) Why you call it "money laundering scheme"? Just don't want to pay interchange fee, that's why want to make payment agent in EU. And crypto is better because anyway some costs can be paid in crypto, then it's better to convert receive money in crypto.

 

[daniels27]

Thanks for the answer.

1) For the audit I heard that they need to check each transaction despite it's the same nature so the price is still high.

Yes. But if you have two list of 100000 transactions and the corresponding invoice, any accounting software can match it pretty fast.

2) Why you call it "money laundering scheme"? Just don't want to pay interchange fee, that's why want to make payment agent in EU. And crypto is better because anyway some costs can be paid in crypto, then it's better to convert receive money in crypto.

Then just pay FIAT and do your rest elsewhere if you want to save on accounting and auditing.