I'm mulling over using Paypal express as an option for a new ecommerce site. I've searched for an answer to this question but can't seem to find an answer. My question has to do with exactly how you would checkout using Paypal on Etsy, for example. Let's say the total sale price is $20, when the buyer is being redirected back to Etsy after logging on to Paypal so their information can be collected, at what point would Etsy collect their commission? Would Etsy just collect their commission and the remaining payment goes directly to the seller, without Etsy touching the seller's portion? For my site the $20 (for example), needs to go directly to the seller while at the same time my company collects our commission without any part of the sellers portion of the sale being in my Paypal Express account for any amount of time.
It depends on how they are processing payments. They could be using Express Checkout with Parallel payments. Basically when the DoExpressCheckoutPayment API call is executed the transaction would be split up into the different accounts.
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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.
A proposed scenario is, assume the shopping cart site, where buyer has to pay for a product. The sold product costs will be transferred to the respective merchant. Here, the website owner has to be paid(commission) for the purchased product.
Is it possible in Paypal? Right now, I am using Paypal checkout. Your ideas/suggestions would be helpful. Please do it.
There are a number of ways you could set this up.
You could use the Adaptive Payments platform, specifically the Pay API, to create parallel or chained payments so that multiple receivers can receive money within the same transaction.
You can also do a parallel payment with Express Checkout, but you can't do a chained payment.
The main difference is that with parallel payments the buyer will see the split during checkout. With a chained payment you can hide that so they only see the primary receiver. Also, chained payments can be delayed so you can trigger the commission to be paid at a later time if necessary (for example, waiting for services to be completed.)
Another way you could do this is to use Payments Standard, Express Checkout, or Payments Pro, and let the payment go entirely to a single account. Then setup a Pay API request to submit payment to the secondary receiver, or use the MassPay API. This could be setup within an IPN solution so the entire thing is automated. In this case you'd basically be building what the adaptive payments platform does for you, but it would give you a little bit more freedom over everything in the application.
Capture Card as I understand it allows a seller to securely accept an online order with credit card name, number and code via a shopping cart. We can subsequently ship the order, add the freight to the invoice and submit the total amount to the credit card for payment. After the payment has been posted the credit card information is wiped from the order.
I was led to believe that I could do this with a PayPal Payments Pro account, so I created one and sent a test invoice through with my own credit card. The amount of the invoice with tax was immediately posted to my PayPal account without the opportunity to add freight.
Can anyone on this forum provide a solution or workaround?
Thanks!!
Are you processing this initially as a sale or an authorization. If you are wanting to use the DoDirectPayment API with Website Payments Pro, you could process a 1.00 authorization to validate the card. Then perform all of the calculations that you are needing to, and then process the payment using the DoReferenceTransaction API call where you send across the full amount you want to charge to the buyers card. You only have to reference the transaction id for the last successful 1.00 auth you did, and PayPal will use the same credit card information. Otherwise you could also process the DoDirectPayment API call with the full amount at the time of checkout, and just use the DoReferenceTransactions API call to charge any additional charges to where not initially charged such as tax and shipping.
Another option would be to use Express Checkout, and process the transaction as an order. This will allow you to make more then one authorization/capture against the order. You can also set a max amount in the Express Checkout API calls.
We are a UK-based marketplace site that wants to never force buyers to sign up for paypal. We allow users to set up customized stores through our site, and our second requirement is that these users be able to become sellers with only a basic paypal account. When a buyer makes a purchase, we are the primary receiver, taking 15% and passing on the entire paypal fees to the secondary receiver (user), as well as all the remainder of the transaction. My question is: What's the best solution paypal offers for this? It seems that chained payments would be, but if I understand correctly the Website Payments Pro system is the only one that guarantees that buyers outside the UK wouldn't need a paypal account. Is there a way to take the money in ourselves with Website Payments Pro and use the API so it transfers the 85% (minus the fees) to the user's paypal account?
It depends on what approach you want to take.
I would prefer Chained Payments as it allows guest checkout (credit card payments outside a PayPal account) with certain restrictions and will easily allow the user to receive the funds and automatically forwards the 15% cut to your account. This removes the need to collect funds outside of the payment flow. This means no invoicing or no lost dues!
Website Payments Pro only offers credit card payments however you would also need to offer Express Checkout for PayPal payments as well. You also have the flexibility of hosting the order form so you control what the users see. The downside is you'd have to collect funds from the user outside the payments. Such as monthly invoicing, billing agreements or manual processing.
Here is the criteria we use to allow guest checkout. Please keep in mind these are due to rules and regulations, not PayPal's choosing.
The credit card has a lifetime limit of 10 purchases outside a PayPal account
The user's email address must not be attached to an existing PayPal account
I don't have a direct answer for you but hopefully this helps make your decision.
I'm curious if there is a way to process/connect buyers and sellers on my site without the site having to charge the buyer and credit the seller. In other words, I don't want to touch the money, but I do want to integrate the process as much as possible on my site.
I guess what I'm asking is how do auction sites manage the transactions between buyer and seller? I really don't want my site to resort to emailing the buyer with the seller's contact information and saying .... "here's the sellers info. Good luck with that."
Ebay seems to allow a buyer to go to PayPal and pay the seller, but returns back to Ebay with payment confirmation. Even though the transaction is between Buyer and Seller, Ebay is able to retrieve some details about that transaction. Is this simply because Ebay owns PayPal, or can other sites do the same?
-This is an old question but the information is a bit off so I will try to re-answer.
It is all doable. There is no custom code going on like codingspace is suggesting.
Paypal has a number of checkout types, I have some decent experience with express checkout so I will try to answer with an example of those calls.
You set up the payment with a SetExpressCheckout call using your call back uri (so you see if the customer confirms) and the sellers info in the request (you will need appropriate information from the seller).
With that, once they confirm you can bill them with DoExpressCheckoutPayment using the sellers and info and the returned information from SetExpressCheckout.
And that is effectively the process. Pretty simple really.
In terms of taking a commission, you can't do it via that specific transaction. What most mass retailers do is keep a record of all the commissions and bill the seller at the end of the month. The other option is forcing sellers to buy prepay credit which is then used on commisions of each sale, this is what trademe.co.nz does (NZ's ebay.)
Let me know any questions.
I'm guessing you don't want to take a commission off of each sale on your site then. The only thing that comes to mind is to have the seller provide their own paypal "buy now" button after the sale that you can then give to the buyer.