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.
Related
I have been building a marketplace application with an iOS app as front-end that drives the business. The app can accept payment either through a paypal account or a credit card. I have integrated Braintree iOS SDK into my app and linked the paypal business account in Braintree controlpanel. The funds processed using PayPal are being routed to the paypal and those processed using cards end up in the bank account linked with Braintree merchant.
Now, the core of the application is to take a certain commission and payout the rest to the sellers involved in transaction. I have taken the seller's PayPal ID at the time of registration to pay them.I have explored the PayPal docs and found that Payouts REST API does exactly what I need provided I maintain the required balance in the merchant account.This is where things came to a standstill. Specifically, I need to get confirmation on the below points
1.As there are two different places(paypal merchant and bank account
linked to braintree) where my funds are parked, Is there any
possibility that the transaction could directly be funded from the
bank account if the same is linked to both merchant accounts?
2.Will PayPal withdraw the entire amount at once or in partial
transactions.
Can anyone who have been in a similar situation suggest how to go about paying out the sellers. I am open to any alternative that satisfies all the requirements of the app.
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.
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.
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
our website works very well in Sandbox. We are using Adaptive Payments to implement Personal Payments (directly from one person to other), and now we want to test our functions in Live mode.
But when we read the Application Policies to go Live (https://www.x.com/developers/paypal/documentation-tools/paypal-application-policies-and-guidelines) we surprised to find next:
PayPal - Application Policies
The Merchant/Seller of Record must be the primary recipient for every PayPal transaction made between a payment Sender (Buyer) and the associated payment Recipient (Seller).
(we use like a sender a person and like primary recipient, a friend of that person)
Do not use PayPal API operation calls to provide Personal Payments in India, Mexico, Malaysia, Singapore, and Taiwan.
(we are in Spain)
Do not expand Personal payments or provide remittance services for any transactions provided via PayPal services.
So, is there any problem to use Adaptive Payments (Personal Payments) in Live mode ?
Thanks in advance.