We are building a web application where a company can buy a license which costs $300 and extra users which cost $10 for one year. Suppose company bought a license and 10 users. They will pay $300+$100 = $400.
After some months if the company wants to buy extra users, they can buy those but they will have to pay remaining days cost at the prorated basis. Like if they buy 1 extra user after 6 months, they will have to pay $5.
So after the license is expired, we want that to be auto-renewed with license cost and users cost for next year which will be $400+$10 = $410. Is there any API for such renewal process?
Also, we are using Paypal API based approach in the application and hence for payment, we need not go to Paypal's gateway. Can I know the maximum limit for such transaction? Is it $10,000?
By default PayPal's limit is $10k but you can call and request they raise that limit.
For what you've outlined it would be best to use Reference Transactions. This way you won't have any limitations on when you process a payment or what amount to process.
For regular PayPal payments you'll need to setup a billing agreement and use the billing agreement ID in future reference transaction requests. For direct credit card you don't need a billing agreement.
Related
Trying to set up a subscription via paypal rest API. I am looking on a solution on how to modify the subscription and charge the specific fee in 1 checkout. I found a way to change the quantity on the subscription, but the problem paypal does not prorate.
So for example, if user subscribes today with 10x of product and then changes the subscription to 20x of product, the paypal will not charge the prorated fee. So how to handle that?
This is an official msg from paypal:
The new price is effective starting on the next billing cycle. Proration and one-time fees aren't automatically supported. If you want to prorate the difference at the time the plan changes or charge one-time fees, you need to do these manually. https://developer.paypal.com/docs/subscriptions/customize/revise-subscriptions/
How do I charge it manually?
How do I charge it manually?
Use setup_fee to simply add an additional fee, or use a 1 cycle trial period to modify the amount of the first payment, which can be lower or higher.
I'd need to get and store users auth to bill them via PayPal in the future, the auth shouldn't expire.
The normal auth & capture lasts 29 days. So I looked into subscription and/or recurring payments but here you need to specify how many times, how often and for how long you want to charge.
What I need is the possibility to charge user's PayPal account when something happen (never, tomorrow, in 3 months, once or twice etc) without asking the user to login/auth it again.
Many sites do this (for example godaddy charges me when one of my domains expire or when I buy a new one) but can't find the documentation.
As said in the comments, this is called billing agreement:
A Billing Agreement allows a seller to charge your PayPal account when you purchase goods from them or use their service.
An example of this would be an agreement to pay eBay seller fees for listing items on eBay
Billing Agreements are different from subscriptions. With subscriptions, a fixed amount is charged for a specified period, but with Billing Agreements, the amount and time period aren't fixed.
This feature probably must be activated in your merchant Paypal account.
Here is a related question: Can I create a Billing Agreement with credit card (without paypal account)
I am having nightmare figuring out which payment sdk to follow to charge my customers on daily basis for the due outstanding to them from my application which varies(metered charging my customer).
the recurring payment only helps to pay the fixed amount for certain billing cycles.but i have variable amount to charge daily.
Is there any best approach to charge my customers on daily basis for the amount due to them from my software for the digital service i provide to them.
Thanks in advance
any suggestions and comments are welcome.
PayPal offers 3 integration types:
1. Express Checkout (the most common)
2. Adaptive Payments
3. PayPal Payments Pro
You're trying option #1, which lacks support for variable pries.
Both Adaptive Payments and PayPal Payments Pro offer recurring charges with dynamic amounts, but require PayPal's approval and quite a bit of paperwork. If you're approved, the APIs are pretty simple in both cases.
May I suggest some easier alternatives?
1. Use Recurly who are already approved for #2 above (adaptive payments). Other good alternatives are BrainTree and Stripe.
2. Change your pricing policy to a monthly charge of $X, granting a set of tokens. The user can upgrade to a higher plan to get more tokens every month.
We are using PayPal subscriptions to automatically make ongoing monthly donations. The user initially creates a subscription with some pre-determined monthly donation amount (e.g., say $50/month). This creates a recurring subscription which we process by way of IPN. All good there. But, our interface allows the user to come in and change their monthly donation amount, say from $50/month to $100/month. I am wondering how I can change the PayPal subscription to reflect this new amount?
There is a method in PayPal's NVP API called "UpdateRecurringPaymentsProfile" which says I can update the subscription amount, but unfortunately it says:
For recurring payments with Express Checkout, the payment amount can be increased by no more than 20% every 180 days (starting when the profile is created).
(reference: https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_api_nvp_r_UpdateRecurringPaymentsProfile)
To be honest, PayPal's API's are quite confusing so I'm not sure if I am using the Express Checkout or not. (We are creating Subscription buttons using the simple Website Payment Standard API).
Will this work? If not, is there an alternative to achieve what we need?
Thanks!
I'm not sure if I am using the Express Checkout or not. (We are creating Subscription buttons using the simple Website Payment Standard API).
I hope rereading the above, you will realize that you answered your own question: You are using Website Payments Standard (WPS) not Express Checkout (EC).
With WPS, you can create a subscription modify button but this is super inflexible and I would not recommend it.
With EC, you can modify subscriptions as well (page 99):
Use the UpdateRecurringPaymentsProfile API to modify a recurring payments profile.
NOTE: You can also modify recurring payments profiles from the PayPal website.
You can only modify the following specific information about an active or suspended profile:
Subscriber name or address
Past due or outstanding amount
Whether to bill the outstanding amount with the next billing cycle
Maximum number of failed payments allowed
Profile description and reference
Number of additional billing cycles
Billing amount, tax amount, or shipping amount
NOTE: You cannot modify the billing frequency or billing period of a profile. You can
modify the number of billing cycles in the profile.
NOTE: For recurring payments with Express Checkout, certain updates, such as billing
amount, are not allowed within 3 days of the scheduled billing date, and an error is
returned.
You can modify the following profile information during the trial period or regular payment
period:
Billing amount (excluding tax and shipping)
Number of billing cycles
With that information out of the way... For the most flexibility:
Look at creating Billing Agreement IDs through Express Checkout. You will need to get Reference Transactions enabled on your PayPal account (talk to merchant support to get this done).
With a BAID, you control when your customers are charged, how much they are charged, and pretty much anything else having to do with the transaction. The drawback is the same as the benefit.. you (see 'have to') control it all.
I am trying to use the Recurring payment API offered by PayPal.
I have a scenario which I am not able to address directly. It goes like this.
We have a website where we sell some services. Now the services are charged per user license. A user can buy/cancel user license in between. We want to offer the customer a recurring billing option. We have to notice here that the amount may vary each billing cycle based on the number of user licenses the customer uses during that cycle.
Is there any way I can achieve this using PayPal recurring Payment API's.
I realize this is a very old post, but it still shows up for Google searches, so I thought I'd add:
Paypal does allow you to do this now, using their new adaptive payments api.
Authorize.net also has a service that might work called Customer Information Manager.
The recurring payment option is a fixed amount that the customer pre-agrees to pay each month (or period). To do what you're trying to do, a customer would have to pre-agree to pay whatever amount you decide to charge at a later time. This means pre-authorizing an unknown payment amount, which will not be allowed by any payment service.
Your only options are:
Bill the variable amount each month (i.e. no subscription).
Set up a subscription where the monthly amount is the maximum that could potentially be billed, and then refund the difference each month.
Good luck with #2 - I would never agree to such a thing as a customer, personally.
What you're looking for is covered in the UK by the Direct Debit system, however given the potential for abuse it's very tightly controlled and there are a lot of restrictions and regulations governing it.
I'd strongly suggest you just set up a monthly invoicing system that just bills the client each month.
I don't know its meaning full or not as it is a very old post.
Instead of creating recurring profile on PayPal Server, You can store the customer's credit card on the PayPal using REST API: https://developer.paypal.com/docs/api/#vault then every month you can fetch it and charge it like recurring Payment Or When client is no longer with the services then just remove its card from PayPal.
I suppose Authorize.net SIM method also does the same.
Hope this make sense.