Paypal Adaptive Payments Sales Tax - paypal

Using Paypal's Adaptive Payments API, I am selling physical items that require a ship to address - on the Paypal purchase page I inform Paypal to have the customer select an address. If I have sales tax rules set up on my merchant account, how do I get Adaptive Payments to add sales tax to the order - I hand it the subtotal, and based on the state in the address the user selects, it calculates and adds the sales tax to that subtotal for a grand total?
Isn't this the entire point of Paypal - customer provides this information to Paypal, and then provides me only the information I need for the transaction?

You're right but AFAIK, since PayPal does not want to keep tax rates which differ for countries and type of goods you ship. So, you can either try using
GetShippingAddresses
api call before executing the payment, and add
totalTax
information during
SetPaymentsOptions
call..

Doesn't seem to be able to compute this on its own - I ended up keeping a hack of a solution in place. Prompt the user to provide the state to which the goods will be shipped to, and then calculate the tax on my own before sending the order total (subtotal + tax) to the Paypal workflow. Disappointing, IMO.

Related

PayPal micropayment

I m planning to integrate micropayment in my ASP.NET website. I need to use PayPal to achieve this.
The cost of the service I deliver is low, about $1 per month. I'd like to know more about PayPal service for this kind of cheap transactions.
How much does PayPal hold for each $1 payment ? I found this explaining the PayPal conditions for micropayment. Any feedback on this ?
Plus, how does PayPal handle currency conversion ? My service is worldwide, so I want my users to be able to buy my product not only using dollars, but euros or another currency.
Thanks
In the link you quoted the fees section is expandable and you can see the Micropayments pricing:
5% + $0.05
Signing up for it doesn't require any vetting or contract changes. Contact Customer Service and they file a request to a team that enables Micropayments. Should be done within a few days.
Currency conversion and cross-border transacitons are also in this page:
International Sales: The pricing table above applies to domestic payments in US dollars. There's an additional 2.5% charge for any currency conversion and a 1% charge to receive payments from another country.
If you decide to charge your buyers in USD only, they will be able to choose if they wish he card issuer or PayPal to convert the money. Most won't even notice the conversion took place and it will make your reconciliation much easier.

PP REST API charge tax and shipping without sending address?

Using the REST API, how can I charge tax or shipping if I send the user to PayPal to collect shipping information (and pay, of course)?
Doing some research it almost seems like that isn't possible, but I can't imagine that being the case. If I have to collect shipping information myself, the value prop for using PP is greatly reduced.
With the REST API, just like the Classic API, a PayPal payment is executed in three steps:
1) Send initial information to PayPal to get a token. Redirect customer to PayPal. Customer authorizes payment.
2) Get payment details (like the shipping address)
3) Confirm payment.
So, in this case, after getting the shipping address, you display an order review page to the customer where it will generate the shipping options and tax amount to the customer. They then have to select a "Confirm Order" button which will then finalize the charge to PayPal with the new tax/shipping and final amount.
In API terms, the final step is done with the /execute command. This accepts the payer_id you received in step 2, and a transactions array that supports a new amount object.
The amount object includes a details object that includes shipping, tax, handling fee, insurance, etc.
Include the details the customer decides on your review page and PayPal will charge the updated amount to the customer's funding source of choice.

Capture Card capabilities in PayPal Payments Pro

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.

Changing the Amount of a PayPal Subscription

We are using PayPal subscriptions to automatically make ongoing monthly donations. The user initially creates a subscription with some pre-determined monthly donation amount (e.g., say $50/month). This creates a recurring subscription which we process by way of IPN. All good there. But, our interface allows the user to come in and change their monthly donation amount, say from $50/month to $100/month. I am wondering how I can change the PayPal subscription to reflect this new amount?
There is a method in PayPal's NVP API called "UpdateRecurringPaymentsProfile" which says I can update the subscription amount, but unfortunately it says:
For recurring payments with Express Checkout, the payment amount can be increased by no more than 20% every 180 days (starting when the profile is created).
(reference: https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_api_nvp_r_UpdateRecurringPaymentsProfile)
To be honest, PayPal's API's are quite confusing so I'm not sure if I am using the Express Checkout or not. (We are creating Subscription buttons using the simple Website Payment Standard API).
Will this work? If not, is there an alternative to achieve what we need?
Thanks!
I'm not sure if I am using the Express Checkout or not. (We are creating Subscription buttons using the simple Website Payment Standard API).
I hope rereading the above, you will realize that you answered your own question: You are using Website Payments Standard (WPS) not Express Checkout (EC).
With WPS, you can create a subscription modify button but this is super inflexible and I would not recommend it.
With EC, you can modify subscriptions as well (page 99):
Use the UpdateRecurringPaymentsProfile API to modify a recurring payments profile.
NOTE: You can also modify recurring payments profiles from the PayPal website.
You can only modify the following specific information about an active or suspended profile:
Subscriber name or address
Past due or outstanding amount
Whether to bill the outstanding amount with the next billing cycle
Maximum number of failed payments allowed
Profile description and reference
Number of additional billing cycles
Billing amount, tax amount, or shipping amount
NOTE: You cannot modify the billing frequency or billing period of a profile. You can
modify the number of billing cycles in the profile.
NOTE: For recurring payments with Express Checkout, certain updates, such as billing
amount, are not allowed within 3 days of the scheduled billing date, and an error is
returned.
You can modify the following profile information during the trial period or regular payment
period:
Billing amount (excluding tax and shipping)
Number of billing cycles
With that information out of the way... For the most flexibility:
Look at creating Billing Agreement IDs through Express Checkout. You will need to get Reference Transactions enabled on your PayPal account (talk to merchant support to get this done).
With a BAID, you control when your customers are charged, how much they are charged, and pretty much anything else having to do with the transaction. The drawback is the same as the benefit.. you (see 'have to') control it all.

Recurring Payments in PayPal

I am trying to use the Recurring payment API offered by PayPal.
I have a scenario which I am not able to address directly. It goes like this.
We have a website where we sell some services. Now the services are charged per user license. A user can buy/cancel user license in between. We want to offer the customer a recurring billing option. We have to notice here that the amount may vary each billing cycle based on the number of user licenses the customer uses during that cycle.
Is there any way I can achieve this using PayPal recurring Payment API's.
I realize this is a very old post, but it still shows up for Google searches, so I thought I'd add:
Paypal does allow you to do this now, using their new adaptive payments api.
Authorize.net also has a service that might work called Customer Information Manager.
The recurring payment option is a fixed amount that the customer pre-agrees to pay each month (or period). To do what you're trying to do, a customer would have to pre-agree to pay whatever amount you decide to charge at a later time. This means pre-authorizing an unknown payment amount, which will not be allowed by any payment service.
Your only options are:
Bill the variable amount each month (i.e. no subscription).
Set up a subscription where the monthly amount is the maximum that could potentially be billed, and then refund the difference each month.
Good luck with #2 - I would never agree to such a thing as a customer, personally.
What you're looking for is covered in the UK by the Direct Debit system, however given the potential for abuse it's very tightly controlled and there are a lot of restrictions and regulations governing it.
I'd strongly suggest you just set up a monthly invoicing system that just bills the client each month.
I don't know its meaning full or not as it is a very old post.
Instead of creating recurring profile on PayPal Server, You can store the customer's credit card on the PayPal using REST API: https://developer.paypal.com/docs/api/#vault then every month you can fetch it and charge it like recurring Payment Or When client is no longer with the services then just remove its card from PayPal.
I suppose Authorize.net SIM method also does the same.
Hope this make sense.