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.
Related
We want to enable customers to get discounts through our website. I'm curious whether we can support a discount flow when a customer pays with venmo, specifically.
The situation: a customer comes with a $10 discount to our marketplace website. The $10 discount is paid for by the site, and not the merchant. The customer finds a merchant that they like, and the two agree upon a sticker price of $100. The customer should therefore pay $90, and the merchant should earn $100.
Is it possible to ensure that the customer pays $90, and the merchant earns $100?
No details on the venmo / paypal integration page whether it would be possible to send the merchant $10 separately
https://developer.paypal.com/docs/checkout/pay-with-venmo/
To send money to the merchant separately you would need to use a solution like Payouts or Hyperwallet.
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're planning a web app that allows users to pay our clients directly through Paypal so there will be many different users and each will be paying a specific client through the website and there will be multiple clients.
These payments may be one-off payments but a few may be recurring.
We won't be charging a transaction fee for this so we basically want the whole payment amount to be deposited in the client's Paypal account (so they pay their own Paypal fees). I've looked at chained payments to be able to take a payment for a client but I'm just wondering what the actual flow of money is in a chained payment.
When a chained payment is made does Paypal deposit the payment go into our Paypal account first and then be paid into the client's account or does the client portion (in this case 100%) go directly into the client's account?
I'm asking as we're not sure how it would affect us in terms of accounting in our business if all the payment money was actually passing through our Paypal account (even if only briefly).
Or is a chained payment not the ideal solution for this?
Thanks,
Steve
If you are not taking a cut of the money, then I believe either Simple or Parallel payments would be a better solution. If you are going to be processing payments for a single buyer to a single merchant, then you can just use Simple Payments. If you are going to be processing payments for a single buyer to multiple merchants then you'd want to use Parallel Payments. More information on each of those APIs can be found here.
Let us assume that some money is deposited to the admins account when a user signups . Now the same user when goes to buy a item he gets some kind of discount for ex:- the item he wants to buy costs $500 but he gets $100 discount so he has to pay only $400 . Now the remaining $100 will be diposited from admins account to the sellers account . so the seller gets $400 from buyer and $100 from admin in a single transaction .
Is it possible in Paypal ? Your ideas/suggestions would be helpful. Please do it.
Currently there is no single API call that would do what you are looking for. You could code it where you accept the payment and then make a 2nd payment out to the seller. You could even look into Chained Payment Adaptive Payments for part of it (You are the primary receiver and accept the payment and then chain most of that payment over to the secondary receiver).
You should be able to do this with PayPal adaptive payments, using parallel payment. It is the same as chained, except there is no primary leg. All the payment legs would have the same receiver, 6 is total number of receivers in the parallel case.
To reverse if either fails: reverseAllParallelPaymentsOnError to true
How do you intend to authorize the payment? If you are using the admins credentials to make API call this might work. Buyer explicitly approves payment, admin (since his credentials) implicitly approves payment.
I'm working on a software project in a group of developers and we plan to sell the product via an electronic payment system such as PayPal. In this connection, we wonder if it would be possible to set up a business account with PayPal (or any other payment system) in a way that makes any received payment split according to a certain ratio and the shares automatically transferred to other accounts?
If it's possible with PayPal, how we do it or where do we find any help docs on this subject?
If you are wanting to split payments, you can use PayPal's Express Checkout or Adaptive Payments to split up the funds into different accounts. Using Express Checkout with parallel payments, you can split up the transaction up and the receivers of the payment will pay the fees according to the amount they received. The buyer will see the different receivers that were involved in the transaction. If you use Adaptive Payments you can set who pays the fees, and it can be set up so the buyer does not see the other parties involved.