I'm trying to develop a flow with PHP t send funds to our community.
When we sell a product, we receive amount from a customer, and after certain days send the amount to seller.
I have used PayPal payouts API for send money to seller, but, when I send funds, PayPal charge fees on my account... the seller receives a full amount.
How I can send the amount to seller without charging fees to my funds?
How to send funds and charge fees to recipient
What you are asking is a simple accounting matter. Calculate the fee that will be charged, and send your amount to the recipient minus that fee amount.
Related
I'd like to find a cheaper (free) service to use to transfer money between my websites customers and Stripe's fees a very high.
I can't seem to get any clear answer from the PayPal website for developers or by talking with a customer service reps on the phone.
In my website, I want to transfer money (via API) from my customers account (PayPal) to my business account (PayPal), then at a later time, transfer money from my business account to another customer account (PayPal).
Can this be done NO transaction fee?
If no, what are the transaction fees for this, I'm a little confused by the fee site.
Is this is the correct page? - https://developer.paypal.com/docs/payouts/reference/fees/
Or do I look under the merchant fees and which link? - https://www.paypal.com/us/webapps/mpp/merchant-fees#paypal-payouts
I also see adaptive payments, but it says on the site that it isn't available for "new integrations". Does this mean I can start using it when I go live with my site?
https://developer.paypal.com/docs/archive/adaptive-payments/
API...without paying a fee
No, the usual processing fees apply to all API transactions.
The only PayPal transfers without a fee are in certain countries that have payments to "friends & family", which are not for business or commercial purposes and can be initiated only in paypal.com and sourced from the PayPal balance or local bank (sending money from a card always has a fee).
Regarding fee types, merchant fees apply to receiving payments to your account and payouts fees apply to sending money from your account (if you have the payouts service)
We would like to send PayPal payments automatically via API with the same functionality like the regular send-money feature on the web-version, meaning:
a) The recipient pays the fee
b) We can send the payment with the credit card attached
I'm aware of the MassPay API, but as far as I know it requires the sender to pay the fee and can only be paid for by PayPal balance.
Is there an API that works like described?
No.
Payouts, the current version of the old MassPay API, requires a PayPal balance or bank funding source (in the countries where it's available). It cannot be used to send money from a card.
Whether the sender or the receiver pays the transfer fee is semantics: if the receiver were to be paying it, they are consequently simply receiving less than the gross amount that was sent to them. This semantic distinction only exists in the web version, not with the Payouts API.
I understand that Paypal's MassPay can be used to, as a business, quickly make payments to multiple people. I also understand that the business sending the mass payment is responsible for the transaction fees, and that the recipients of the payments are not charged any further fees.
I am curious if it's possible to utilize MassPay to account for revenue shares / commissions when a buyer purchases a product through an eCommerce application.
For instance: my application allows users to buy and sell products. My business keeps 20% of every sale, and the seller receives the remaining 80%.
A seller sells a product for $100 to a buyer through my application. My business should receive $20, and the seller should receive $80. The buyer completes the checkout / purchase process by making a $100 payment through Paypal. My application has MassPay configured in a way that will send $20 of that $100 to my business's Paypal account, and the other $80 of that 100$ to the seller's Paypal account.
Is such a thing even possible?
if the answer is yes…
How will this appear in the Paypal accounts (activity / transaction history) of the buyer, the seller, and my business?
What if the buyer has a problem with the product they purchased, and they open a dispute with Paypal? Will they have to open a dispute for one transaction ($100), or two ($80 and $20)?
Because the buyer is the person making this mass payment, will they be charged additional fees in some way? Will those fees need to be factored into their purchase cost during the checkout process?
Thanks in advance.
You can absolutely use masspay to send "contingent" payments like rev shares and commissions; in fact this is the product's most common usage. It was built for that.
You may also be able to use PayPal products like chained or parallel payments to create multi-link payment flows.
In most cases you want payments to flow along with responsibilities/agreements. For example if I buy something (e.g. a t-shirt) I don't want to make multiple payments to supply chain members; I want to buy the shirt from someone and pay them, and it is their responsibility to take it from there; they may then owe a commission to someone (or to 10 different parties, I don't care), or they may owe a supplier (or a bunch of them)... not my problem.
So I strongly urge you to decide what model you want: is someone buying a product from you, and you will pay a supplier? is someone buying a product from a seller, and the seller will owe you a commission for providing the customer through your marketplace? Then set up your payment flows accordingly.
In the former case (ecommerce store) masspay is an excellent fit: the customer pays you and then you masspay (on a per-transaction or aggregated basis) payments to your suppliers. The buyer only sees the payment they are party to, which is their payment to you. Any dispute is between you and your buyer.
In the latter case (marketplace) the customer pays the full (total including commission) price to your sellers. Then you don't need to push a payment to your sellers but rather to collect a payment from them, so you would likely use invoicing or a billing agreement to collect your commissions.
I am implementing the Paypal checkout system onto my site. Basically there is a seller, buyer, and my business. When the seller puts up something to sell and the buyer buys something, I (the business) get 10% of what the buyer pays. Is there a option in the Paypal api, or do I have to do it another way?
You can use Chained Payments in the Adaptive Payments API:
https://developer.paypal.com/webapps/developer/docs/classic/adaptive-payments/gs_AdaptivePayments/
Chained payments enable a sender to send a single payment to a primary receiver. The primary receiver keeps part of the payment and pays secondary receivers the remainder. For example, your application could be an online travel agency that handles bookings for airfare, hotel reservations, and car rentals. The sender sees only you as the primary receiver. You allocate the payment for your commission and the actual cost of services provided by other receivers. PayPal then deducts money from the sender's account and deposits it in both your account and the secondary receivers' accounts.
Use-case
A Trading-platform for selling goods where each subscriber can purchase and sell ( eg. eBay )
Trading-platform takes commission for each transaction
Flow of actions
Buyer execute a purchase
Funds are transferred from the buyer account to the Trading-platform account
PayPal takes it's transaction commission
Trading-platform takes it's commission
Trading-platform transfer the reminding funds from it's account to the Seller account
PayPal takes it's transaction commission
Problem at hand
As can be seen in the above 'Flow of actions' PayPal will charge for commission twice
this composite transaction model considerably complicates implementation/cost.
Feedback required
Is there any payment model with which this can be avoided?
Is there any payment model where for each transaction a subset of the total sum is sent to the trading platform account ?
Any help will be appreciated
You could use Adaptive Payments for this. With Adaptive Payments, you can split payments up and set who pays what fees.