We are building a platform for a client, developed in Yii, where users can top up their account on the platform with money from PayPal. Users can upload files and buy access to each other's files. Users can also gift other users with money. I was thinking that when users top up their account, the money goes from their PayPal to the merchant account of the website. So all users' money goes to one merchant account. Then, any transactions on the platform are simply recorded on the platform and each user's balance is the maximum amount they can withdraw from the merchant account. Is this the right approach? Legally, are there any problems?
Handling the holding of money on a platform
php;ecommerce;paypal