PayPal - What does "each receiver" in guest payment mean? - paypal

I'm using Adaptive Payments - Delayed Chained Payment. For the payment solution without PayPal account the buyer uses Guest Payment and in documentation they say:
Each receiver of a guest payment must be a verified PayPal business
or premier account holder.
https://developer.paypal.com/docs/classic/api/adaptive-payments/Pay_API_Operation/
What does the "each receiver" actually means? Does it mean that even the secondary receiver in Delayed Chained Payment must be veryfied business or premier account holder? There is no way to test this in sandbox environment, because it works even if the primary receiver is personal account.
I understand it in a way that my application is business account holder so that the Guest Payment should work. For the 2nd transaction to send the money to the secondary receiver I'm not using Guest Payment, I simply call ExecutePayment method from Adaptive Payments API. Will it work if the secondary receiver in this case is normal personal account?

PayPal MTS answer:
Does it mean that even the secondary receiver in Delayed Chained Payment must be verified business or premier account holder?
The answer is YES, in all cases.

Related

Is it possible to create a market place style app with paypal?

I am working on a web application for a client and he wants the payflow to work sorta like this:
Seller makes an offer for an item
Customer purchases the item
The seller sees the item is paid for but won't get the payment
When the item has been marked shipped the payment minus app fee and paypal fees will be sent to seller
App Fee is deposited into the application's paypal account
I have implemented it using paypal's express payment api and do the payouts manually. But this has caused double paypal fee's which are incorrect. My client wants to use adaptive payments but that isn't going to work since they require the seller to be the primary receiver and the merchant service be the secondary but for out desired flow that won't work. What other option do I have?
From the description you provide, the best approach is to use Adaptive Payment Delayed Chained Payment. The buyer will make a payment for the item and the seller will directly receive the amount. You can specify the merchant services to be the secondary receiver but when using the Delayed Chained Payment, primary receiver (seller) will always get the payment first and using the Pay API, secondary receiver (merchant services) will get their portion. If you required the seller to be the last person to receive the money then they (seller) should be the secondary receiver.

No paypal account for a secondary receiver in a Paypal Adaptive Transaction

What happens in the case the secondary receiver in my transaction doesn't have a Paypal account.
Will he receive a notification asking him to create a Paypal account, or will the API call not succeed?
I have little way to know if the user selling services has got a Paypal account when he registers to my platform.
Also, does it have to be a Business account in order to receive money, or can it be a personal account?
Freelancer mostly will be using this on a one-time basis.
Thanks a lot.
The application owner must have a PayPal Business account. Senders and (secondary) receivers are not
required to have PayPal accounts initially. PayPal prompts a sender to create
an account before a payment can be completed. A receiver must create an
account to receive the funds after the payment completes.
Also, GetVerifiedStatus API will help you determine what type of account the user has and if it is verified or not.

Chained paypal payment

I was wondering, under PayPal chained payments if I could be a secondary receiver and not receive paypal disputes?
Let me explain more:
Say I have a buyer and a seller and me.
I want the buyer to buy directly from the seller who will have a paypal account and automatically I will receive some commission from that payment. However, I do not want to be the one the payment is made to as I do not want to be involved in disputes so I was wondering if there is a way to do this?
Sure. Have them authorize your API user ID to run calls on their behalf. Then you pass their primary email address as an argument in your calls and do your chained payment. You still get paid but they would "own" the payment. The downside is that if they lose the dispute, I bet they deduct form your account too...

Payment Adaptive payments, implicit payment fee

I want to know if there is any fee to make Implicit payment using adaptive payments to other paypal accounts in the same country.
User can buy product from my app using Credit Card through a third party gateway or paypal.
2nd part of my application will distribute commission to multiple merchants who also have paypal account of the same country.
From what I understand its free to send money from senders paypal account in this case the api owner to another registered paypal account of the same country.
Is my assumption correct ?
Hussain
There is a parameter in the Pay request called feespayer that you can set to specify who pays the fee on a payment. Possible values are SENDER, PRIMARYRECEIVER, EACHRECEIVER, and SECONDARY ONLY.
See the Pay API reference for more details.

Paypal API Chained Payment - Secondary Receiver does not have paypal account

I have a website that lets retailers sell goods on-line and the website takes a percentage.
This uses a paypal chained payment.
- the user of the website is the sender.
- the website is the primary receiver.
- the retailer is the secondary receiver.
The problem is if the retailer has not set up a paypal account then the payment fails.
In the paypal documentation is says a receiver is not required to have an account but this doesn't seem to be the case.
Is it possible to set up a chained payment to a secondary receiver without a paypal account?
All recipients must have a valid Paypal account.
For this specific purpose, I've created an open-source library for Rails/ActiveMerchant that will help you with checking the Verified Status of a paypal account:
https://github.com/jonaphin/active_paypal_adaptive_accounts
There are other libraries out there for different languages and frameworks that can help you achieve this.