As per the developer's guide, the payment to the secondary receivers must occur within 90 days, after which you cannot complete the payment as part of original chained payment.
MY question is how to transfer funds to secondary receivers if 90 days period to fund transfer lapsed?
DO I have to refund the funds back to the sender(buyer) and set the Adaptive payment process again?
You don't need to refund the money and start process again. Primary receiver can manually send the money to the secondary receiver , refer to https://www.paypal.com/us/webapps/helpcenter/helphub/article/?solutionId=FAQ1684&m=HTQ , but PayPal will charge transaction fee on this.
Related
I'm developing a PayPal chained payment app where
Primary receiver = the service provider, gets 90% of payment
Secondary receiver = marketplace, gets 10% of payment
It's all working in the Sandbox environment, but there's a snag - when the primary receiver logs into their PayPal account, and manually refunds a payment they received, the secondary receiver doesn't appear to return their 10% automatically.
E.g.:
Primary receiver was paid $100, passed $10 automatically to
secondary receiver.
Primary receiver decides to refund using PayPal
account interface.
Refund for $100 issued; but secondary receiver
keeps their $10. Primary receiver now out of pocket by $10.
I would like it so that the secondary receiver automatically refunds their portion of a payment if the primary receiver issues a refund.
From reading the documentation from the Refund API (https://developer.paypal.com/docs/classic/api/adaptive-payments/Refund_API_Operation/), I thought this was the default behaviour, no matter if the refund was initiated through an API call or manually through the PayPal account interface.
Do I have this wrong, or is it just a bug with the Sandbox environment?
Would be useful to have this cleared up, as couldn't find any existing threads on the matter.
Update
PayPal Technical Support have told me the following:
Thank you for contacting Merchant Technical Services.
From my understanding you would like to have when a primary receiver perform a refund, the secondary receiver will automatically issued a refund.
If you would like all the receiver to refund the amount, you have to pass the paykey. May I know how the payment was made? If it is using Pay API operation, you have to use Refund API in order to refund the transaction. The refund can't be done by using PayPal account.
Use the payKey of the original transaction in the refund API, it will solve your problem.
And in case if you wish to partially refund the amount, specify the amount to be deducted from primary and secondary receivers in the "receiverList" field.
For more, refer: https://developer.paypal.com/docs/classic/api/adaptive-payments/Refund_API_Operation/#table-3-additional-fields-for-refunds-of-specific-amounts-to-specific-receivers
I'm setting up a delayed chained payment in PHP
I'm setting the feesPayer to SECONDARYONLY
$payRequest->feesPayer = 'SECONDARYONLY';
the transaction is made to the primary receiver
but the second leg of the chained payment (from primary to secondary receiver) is still pending.
then 90 days passed (payKey expired) and I did not complete the payment.
who pays the fees when the payKey expires?
Based on my messages with PayPal's support, I tell you that no one will pay the fees because the payment will be reverted back to the buyer !
So if you didn't complete the payment, it will go back and you will not be able to change the receivers during 90 days.
Given a market place that has buyers and sellers exchanging goods. What is the best way to allow a buyer to make a purchase and with hold the money from the seller until the shipment has been received?
Chain payments force the primary recipient to be receive the majority payout. But if that is the case, we end up being force to pay the seller at point of sale instead of what the shipment is complete.
Buyer - pays the total amount
MarketPlace - receives percentage
Seller - receives majority of sale (after delivery confirmed)
Any thoughts on how to accomplish our goal with Paypal?
Thanks!
There are lots of things you can do and any of them could be the best solution. It seems like you are already on the right track with is adaptive payments. The type of adaptive payment I would go for would be a delayed chained payment. A delayed chained payment as described by paypal is
Delayed Chained Payments
By default, payments to all receivers in a chained payment are
immediate. However, you can choose to delay a payment to a secondary
receiver. For example, as primary receiver, you may require secondary
receivers to perform some action, such as shipping goods or waiting
for expiration of a return period, before making payment. To complete
the payment, you must explicitly execute a payment to secondary
receivers after the sender pays you. The payment must occur within 90
days, after which you cannot complete the payment as part of the
original chained payment.
You can find more info about this about a quarter of the way down the page here.
Hope this helps!
p.s. checkout their samples included with their sdk for the classic api here.
I am currently developing a web application which is a booking system for events.
Basically i want to use PayPal's Delayed Chained Payments system to do this:
BUYER makes a purchase through web app
ADMIN is the primary receiver of the funds
SELLER receives the funds 7 days after the event has occurred (less commission for ADMIN)
The reason i am leaving a 7 day period until the SELLER receives the funds is to allow for refunds and cancellations.
My question is:
Does the API allow me to interveen the delayed payment before the 7 days has elapsed, thus cancelling the payment to the SELLER and allow me to directly refund the BUYER the full amount. This is my ideal situation as it means their will not be the problem of the SELLERS account not having sufficient funds for the refund.
If anyone could help it would be great!
With Delayed Chained Payments you'll have the ability to cancel or execute the payment whenever you need to (within 90 days). So if the seller isn't able to supply the product to the buyer (or whatever reason) you can cancel the transaction.
Submitting a refund after a payment has been executed is a little tricky.
So to do a refund for a Chained Payment transaction you'll need to use the Permission Services API calls for the receivers to allow you to process refunds on their behalf. If they don't, you cannot refund the payment sent to another recipient.
After make delayed chained payment if you are not execute payment to secondary receiver then you can refund full amount of payment using refund api Call but you need to grand third party access .using grant api access
we are in Europe and actually, the guest payments (using credit/debit cards) to a friend aren't allowed.
We are searching an alternative to avoid the paypal registration (we known the limitations of this payment type https://www.x.com/developers/paypal/guest-payments).
We are thinking the next workaround: (using chained payment):
[fee 1] [fee 2]
Guest ------------> Primary receiver -------------> Secondary receiver
(credit card) (business account) (personal account)
So the Primary receiver don't get any money, transfers all the receiver money to Secondary receiver.
The problem is that, when you create the receivers list, you must specify the amount of Primary and Secondary receiver, if we set feesPayer to SECONDARYONLY, we don't know which is the exact amount, because we unknow the amount of fees (fee 1 + fee 2).
We have saw the "Payments Details API Operation", to try to get the fees from PayKey and then complete the payrequest message, but this information doesn't return in the message.
Any ideas ?
Thanks in advance.
In Chained Payments the primary receiver receives the total amount of the payment. Once the primary receives the payments then up to that total amount can be split amongst the other recipients.
For this example a consumer makes a $100.00 payment:
Primary receiver receives $100.00
Primary receiver then automatically forwards the funds to:
Secondary receiver 1 $50.00
Secondary receiver 2 $30.00
Secondary receiver 3 $20.00
This is fine as long as the secondary receiver's collective amount doesn't exceed the primary receivers amount. This should also take care of the fee issue as the secondary receiver who has all the funds are responsible for the fees for both transactions.
You are correct in not knowing the fee amount prior to the transaction. This is calculated by PayPal while payment is being made and there is no option for seeing the possible fee prior to payment. If you are the owner of the receiving accounts you may perform the calculations as you are already aware of the rates being charged.
Let me know if you have any questions.