I've been research on this topic without relevant information. The question is, if you split a payment using Adaptive Payment API (Parallel payment) to Seller A and Seller B, would each of them need to pay the 30cents one time fee, in addition to the 1.9-2.9% commission? Put it mathematically:
Buyer pays $10.00 to MyGig.com -
MyGig will split into 2 payments, $5.00 to itself for hosting, and $5.00 to the actual contractor.
Does MyGig pay 30cents + 2.9% (of the $5.00) as a total fee? Does the contractor also pay 30cents + 2.9% (of the $5.00) as a total fee? If this is the case, how do you avoid the 30cents to be applied twice? Does chained payment circumvent that problem?
Related
What are the fees when using authorize and capture?
For regular payment I think the fee is 3.4% + 0.30$
Is that works the same way for authorize and capture?
Is there also fee for re-authorize?
Is there also fee for void?
Is there additional fee for multiple captures?
What happens if I did authorization for 500$ but eventually captured only 100$? the 3.9% are deducted from 500$ or 100$?
I know it's a lot of questions but hopefully I can get some answers.
Thanks!
For PayPal account payments all fees are the same whether using auth/capture or not. Feed apply to captures, no auth fees, so in your example you would pay fees on $100, not $500.
But this type of info should be easily (and more reliably) obtained from PayPal's website or sales staff.
PayPay charge fee only on the money they take - so no fee for authorize and fee only for the amount that was captured.
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.
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.
Use-case
A Trading-platform for selling goods where each subscriber can purchase and sell ( eg. eBay )
Trading-platform takes commission for each transaction
Flow of actions
Buyer execute a purchase
Funds are transferred from the buyer account to the Trading-platform account
PayPal takes it's transaction commission
Trading-platform takes it's commission
Trading-platform transfer the reminding funds from it's account to the Seller account
PayPal takes it's transaction commission
Problem at hand
As can be seen in the above 'Flow of actions' PayPal will charge for commission twice
this composite transaction model considerably complicates implementation/cost.
Feedback required
Is there any payment model with which this can be avoided?
Is there any payment model where for each transaction a subset of the total sum is sent to the trading platform account ?
Any help will be appreciated
You could use Adaptive Payments for this. With Adaptive Payments, you can split payments up and set who pays what fees.
I'm struggling to understand PayPals documentation, but is Parallel Payments intended to pay multiple merchants from a single buyer?
A previous question asks for the difference between Parallel and Chained payments, but no mention of this fact is in the answer.
What I need to do is pay money into multiple PayPal accounts which may not be merchant accounts. In this case is Chained Payments my only option?
Any advice here would be much appreciated.
Yes. PayPal Adaptive Parallel Payments sends money from one buyer to multiple merchants.
PayPal Adaptive Chained Payments sends monety from one buyer, to 1 merchant (who can take his cut and will be the merchant of record) and the remainder is automatically forwarded to the second recipient.
Also take a look at Introducing Adaptive Payments
Parallel payments
Chained payments
In addition to a slightly different flow, chained payments also allows you to designate another recipient as the one to pay the fees.
For example, if receiver 1 is going to be merchant of record, but you want receiver 2 to pay all the fees, you could set that up with Adaptive Payments as well.