Definition of the proper PayPal-method on our marketplace.
It is a dental marketplace where customers can buy several products from multiple sellers (merchants) at the same time. What we need to do is a Payment that only show the different sellers on the PayPal Payment interface (incl. tax, shipping etc. on each seller/merchant) when the customer submit the order. It is important that Dentlet (our marketplace) does not figure on the customer Payment page (due to legal considerations).
Furthermore we only need to Autorize the payment during customer checkout. This is important as we don’t want the customer to transfer the payment to seller/merchant before the actual item is shipped/invoiced (or part of the items are shipped/invoiced).Capture should be on Invoice generated by our marketplace based on shipment. Instantly when/after the Payment has been captured, then we need to do a commission from the seller/merchant PayPal account to Dentlet PayPal account.
Earlier on we have been suggested to go with Express Checkout in this scenario, but due to some challenges implementing we have now been advised to go with: pre-approval with adaptive chained payment. Somehow it seems like we need some functionality from both Parallel and Adaptive - we dont know how to make this happen.
All architectural advises will be appreciated and a freelance consultancy job is available as well.
Best Regards,
Mikael
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I am setting up the Paypal integration for a Clients website. He has a page where users can buy stuff that others users sell and he wants the buyers to pay using Paypal, he also wants the payment to be charged a fee, so that a percentage of the payment goes to the website owner and the remainder goes to the seller. For example:
Tom sells shirts at $20 each and i want to buy two, so i would pay $40 plus the 3% of the transaction, that would sum up to $41.2, $40 would go to Tom and $1.2 to the page owner.
How can i do this using Paypal? I have been reading a lot Smart Payments Button describes how to set a payment but the funds go to a single person, i need to set a chained payment, split payment or something alike and their docs seem very fuzzy.
Any help is appreciated.
Thanks!
platform_fees , documented here , is the analogue to chained payments. However, it is only available to PayPal partners -- i.e., probably not your client.
For separate transaction payments to more than one receiver account, there is multi-seller payments.
After completing the Paypal Integration and after tears and pain i can tell that i couldn't use platform_fees.
The implementation is complete and working but i wrote to customer support and to dev support and they just don't want you to use platform_fees so nothing will work along that path.
The solution they provide and the one they want you to use is getting all the money on your account and then splitting it using Payouts to all the clients.
Really bad solution imo but its convenient for them because they charge more transactions instead of allowing you to do everything on a single transaction.
I need someone to point me in the right direction of what is the best Paypal product to use and the associated functions I need to accomplish my project.
I have a site where a user can signup for a internet phone service with a set monthly fee, lets say $200 for 1000 minutes.
The problem I have is that:
1. The first month is pro-rated so the amount may change.
2. If a user of my site goes over their allotted minutes I will charge them an overage fee in their next billing cycle, so the recurring payment may be different also.
From what I read I need to use adaptive payments is this correct, what functions should I use for creating, capturing and receiving payments.
Please help, I'm really in a bind.
There are many products that will do this. Avoid searching for "Recurring Payments" as that is generally used to refer to specific, relatively fixed payment schedules (like subscriptions) that you set up once with the payment partner (PayPal) and they execute the payments on that schedule for you. These schedules can be configured somewhat flexibly (e.g. free or reduced initial payment) but require that you can state the schedule & amounts in advance.
If you have more variable needs to collect payments from your users then you generally manage the timing and amount of the payments yourself; then you just need a mechanism for billing the user, ie a billing agreement.
PayPal products that support some form of billing agreements include PayPal Reference Transactions, PayPal Adaptive Payments, and the PayPal RESTful Payments suite.
Getting into opinion territory here, but of these three I would recommend either Reference Transaction (as the longest-standing, most mature and widely used solution) or the RESTful payments suite (as the latest and greatest solution) over Adaptive.
I have an educational website that uses 'Stripe Connect' to accept payments from students, and split the payments between myself (the platform provider) and the teachers (content-creators).
Payments to teachers are currently handled through Stripe. Whenever a student purchases content, the teacher automatically receives the payment directly into their Stripe account. I retain a portion of the transaction directly into my Stripe account. It's an easy system and works nicely.
The problem is that students want to pay with PayPal.
So, I would like to add PayPal as a payment option for students, without forcing content-creators to connect two separate accounts--one for when viewers pay with PayPal, and another for when viewers pay with Stripe. The only idea I have so far, is to deposit all PayPal payments to one PayPal account, then manually "payout" teachers into their Stripe accounts every week.
But is there an automated way to do this? Stripe says they don't accept payments from PayPal.
Any ideas/help would be appreciated. Thanks!
Adaptive payments does support chained payments, as Andrew says in his answer; it would work very much like what you describe having set up with Stripe.
However, this will not meet your requirements of having both PayPal and Stripe payments arrive in a single teacher account. Unfortunately, Stripe & PayPal see each other as competitors and to my knowledge neither one has built a tidy product to consolidate "their" payments into the other company's account.
If you are willing to move away from Stripe, PayPal does provide many solutions that consolidate "raw" credit card payments and PayPal account payments into a single receiver account, including through Adaptive Payments as cited by Andrew.
I would add that Braintree, having been purchased by PayPal, provides perhaps the most Stripe-like integration for a product that would accomplish this goal. However, I do not believe that the Braintree SDK will do the chained payments for you; you might have to do some work to make that happen on your end (take the first payment, then calculate and make payouts either weekly as you mentioned or per-incoming-transaction).
A couple other things to think about: if you split some payments into delayed fulfillment but others are chained inside one payments provider you will need to support two very different flows; you may find it easier (for both you and your content providers) to select one model and run everything through that model.
Also, instead of payments going to you & then chained to the content providers you could have payments to go directly to the content providers and then trigger billing (either invoicing or automatically collected via recurring payments) from the content providers to you for your cut.
The best pattern depends largely upon how you want the legal & financial responsibilities to lie: are you providing the good or service and people are paying you for it, making you like a retail store or distributor for producers? Or are content providers providing the good or service being paid for to the students, and you are like a marketplace/facilitator/advertising venue? This question becomes significant as soon as someone is unsatisfied with something they have bought :).
You can use the Adaptive Payments platform with PayPal to split payments just like you're doing with Stripe. Specifically, you'd use the Pay API setup as a chained payment with a secondary receiver.
If you happen to be working with PHP my class library for PayPal will make all of the API calls very simple for you.
I have a hard time finding clear answers to what's involved in implementing following case of chained payments using PayPal...
We are based in New Zealand, offering following types of accounts:
https://www.paypal.com/nz/webapps/mpp/compare-business-products
Currently, we have a Business Express Checkout account.
Our browser app allows users to set up product configurators. The configurators are then used by other users (consumers), to purchase configured products.
A. Simple payment case:
When consumers pay for the configured product, we are the primary recipient, and pass on the payment to the owner of the configurator, minus our revenue share %.
B. Complex Payment case:
Same as A, but multiple secondary recipients. We can't use parallel payments, because the multiple recipients need to be obfuscated.
For each case:
If not chained payments, what is the best fit PayPal option? Which API, if applicable?
Does the Express Checkout account support the required API? If not, which account type, available in New Zealand, does?
Which of the parties requires approval from PayPal? What type of approval? How long does the approval process take, and what affects its success?
Any other considerations when moving from the sandbox to the live setup?
What's the cost of the solution?
We'd obviously favour solutions that require minimal approval hassle, as we will be dealing with many configurators.
It seems like Adaptive Chained Payment is your best option.
Express Checkout support parallel payment but Express Checkout does not support chained payment.
You need a apply for an APP id if you're using Adaptive Payment. I could not answer how long it will took for them to approve.
Everything is the same when you're moving in Live. Just make sure your App has been approved, and the endpoint is change to Live.
The only cost is the PayPal fee's that PayPal collect for each transaction you made.
A proposed scenario is, assume the shopping cart site, where buyer has to pay for a product. The sold product costs will be transferred to the respective merchant. Here, the website owner has to be paid(commission) for the purchased product.
Is it possible in Paypal? Right now, I am using Paypal checkout. Your ideas/suggestions would be helpful. Please do it.
There are a number of ways you could set this up.
You could use the Adaptive Payments platform, specifically the Pay API, to create parallel or chained payments so that multiple receivers can receive money within the same transaction.
You can also do a parallel payment with Express Checkout, but you can't do a chained payment.
The main difference is that with parallel payments the buyer will see the split during checkout. With a chained payment you can hide that so they only see the primary receiver. Also, chained payments can be delayed so you can trigger the commission to be paid at a later time if necessary (for example, waiting for services to be completed.)
Another way you could do this is to use Payments Standard, Express Checkout, or Payments Pro, and let the payment go entirely to a single account. Then setup a Pay API request to submit payment to the secondary receiver, or use the MassPay API. This could be setup within an IPN solution so the entire thing is automated. In this case you'd basically be building what the adaptive payments platform does for you, but it would give you a little bit more freedom over everything in the application.