I'm considering building a system that allows our users to purchase points, trade them between themselves, then cash them in for real currency.
The system will work like this:
- User A buys points - say 100 for £10
- User A buys something from User B for 50 points
- When UserB accumulates >= 100 points, they can sell them back at a rate of £9 / 100
For now, I'm thinking of using PayPal to facilitate the process, but I'm unsure as to the accounting and legal issues I need to take care of. Does anyone have any specific advice or pointers to the areas I need to cover?
We're based in the UK.