We're building a service that acts as a marketplace, but in which there are several beneficiaries for a single payment (not distributed equally between each part).
Let's take an example:
One of my customer wants to buy 100 bricks (1$/brick).
Many sellers have some bricks to sell, seller A sells 30, seller B sells 60, and seller C sells 10
I want to give back 30$ to seller A, 60$ to seller B and 10$ to seller C directly on their bank account
Which payment service can I use? I contacted both Stripe and Braintree but they're only capable to re-distribute the amount to a single person. PayPal would be a great option but we didn't found any way to push money directly on a bank account via API (or at least on a PayPal account).
PayPal Adaptive Payments will get the model done for you, but you can't pay directly to somebody's bank. It would go to their PayPal, and then they can transfer to their bank account from there.
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)
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.
We have the following requirements for an online payment solution:
There are two types of users: Buyers and sellers.
Only digital stuff is exchanged.
When a buyer buys content, money is sent to the seller immediately as well as a small fraction of the money to the website owners.
A buyer must before he can sell his offerings connect his account (that may be PayPal or any other service) to the platform to be able to receive money.
Now, I'm not an expert in this field but my initial idea was to have a PayPal account with Mass Transactions enabled for this website which will receive all payments and then send money out to the sellers via API calls.
However, it would be very nice if it is possible to make this process completely external, a.k.a. use a service for payment which sends the bulk of the money to the seller but a small fraction to the shareholders (website owners). Of course, a seller must first connect his account to the platform to make sure in case one of his offerings was bought he can receive money.
Any ideas are well appreciated.
PayPal Adaptive Payments/Chained Payments might be the best option for you as it can be setup to automatically send a portion of your payments to other accounts.
Here is the overview of Adaptive Payments:
Adaptive Payments Overview
From the PayPal Documentation here is an exact definition of Chained Payments:
Chained payments allow 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.
Here is the information on Chained Payments:
Chained Payment Developer Guide
Here is information on registering your Application, which will allow you to create the Sandbox API Calls:
PayPal APP Basics
I'm currently looking for a checkout provider for a marketplace app we're designing.
I studied PayPal Adaptive Payments and Stripe and they do the trick but it are too expensive (2,9% of transaction). Who has an idea of making this work with other/cheaper solutions?
Our case:
The users should be able to pay each other. When user A sells a product to user B, user A requests a payment from user B and user B pays user A. In their settings the users can enter their account number (so this may vary from time to time). Payment will made directly to the other user, without our intervention.
If you're selling digital content have a look at Google Wallet for digital goods. Base transaction fee is 1.9%.
https://developers.google.com/commerce/wallet/digital/
I wanna build a web store for selling people's second hand products.
A customer adds the products into a shopping cart.
He/she pays (credit card, bank account) for it and I get the money.
The seller sends the bought products to the customer.
I get send the money to the seller (and have taken a fee for it).
People tend to mention Amazon's, Google's and PayPal's payment service but recently I came across services like Chargify and Recurly.
My questions:
How do these two differ from the other three?
Which one would support the above mentioned transaction process?
How should I set up the above transaction process?
The "big 3" require an account. How do I charge with just a credit card or bank account only?
Thanks!
Thanks for thinking of Chargify.
We're not the right thing for your need... we focus on helping a business manage many things involved in recurring billing of customers.
For what you want to do, I think one of the "Big 3" is the way to go. You've got the extra "wrinkle" of this, however: you're essentially collecting money on behalf of each Seller, and each Seller may be selling very different things and will have different levels of honesty, etc.
All of my experience is with merchants that have a traditional merchant account and payment gateway, which together allow them to charge credit cards. But the banks that issue merchant accounts want to know what each merchant (each Seller) is about. I'm 99% sure the banks dislike a single merchant account being used to sell / collect credit card payments for more than one merchant.
Anyway, to the degree that it's useful, I wrote a blog post last year about merchant accounts and payment gateways. It may be helpful to you as you explore options:
https://lancewalley.wordpress.com/2010/06/22/merchant-accounts-payment-gateways/
See my answer in Online payments for a middleman.
PayPal Adaptive Payments allows you to accept guest payments, without requiring buyers to have a PayPal account.
Another thing to think about is regional availability; Amazon / Google may sound interesting, but are not very useful if you don't live in the US or UK. Whereas PayPal Adaptive Payments is available pretty much globally (with the exception of a few countries where PayPal hasn't launched yet).