Paypal Adaptive Payments Fee Calculation - paypal

How does Paypal calculate the fees to apply to each receiver in case of a chained payment done with the Adatprive Payment API?
I'm intrested in the case where the primary receiver is the one who pays all the fees. Is the fee calculated on the total amount payed by the sender or is it a sum of the fees calculated on each aomount in which the transaction is split? The result can be very different because of the fixed .30 paypal charges on each transaction.
And how does this apply to microtransactions?

There are some worked examples on this site:
https://www.x.com/devzone/articles/adaptive-payment-fee-calculation-analysis
I have no idea about the quality of the examples, I just stumbled across it while googling. However, it looks like the primary receiver can simply pay the sum of the fees that each party would otherwise be liable for.

Related

Delayed chained payment PayPal fee documentation issue

I'm using Delayed Chained Payment in this project: https://github.com/paypal/adaptivepayments-sdk-dotnet in sandbox environment.
When I use default fee settings (feesPayer.field = null) fees work according to documentation https://developer.paypal.com/docs/classic/adaptive-payments/integration-guide/APIntro/ scenario "Each Receiver Pays the Fee in a Chained Payment". This works all right. However, when I set feesPayer.field = "PRIMARYRECEIVER" it should work accoring to scenario "Primary Receiver Pays the Fee in a Chained Payment" from the same documentation, but it does not match.
My use case: normal user sends the payment and 1st fee is paid by primary receiver like in documentation. However, when I call ExecutePayment request to send payment to a secondary receiver, 2nd fee does not occur like in documentation.
I should be paying both fees, but the 2nd fee does not exist - where is the issue? Is the documentation correct?
There is no "second fee" if you have the primary receiver paying the whole fee. When the primary receivers the initial payment they pay the entire fee right then, so when you release secondary funds, that fee has already been paid. You won't see it again (in that case PayPal would be double dipping, which they don't do).

PayPal adaptive Payments chained payments won't let the primary receiver take less than the secondary receiver. Want this for refunds

I am using Paypal adaptive payments chained payments for online digital goods purchases.
I have used this api before with a primary and a secondary receiver where the secondary receiver is my company and receives a smaller share of the payment than the primary receiver.
For a separate Paypal application I want to use delayed chained payments with the money resting in my account for a couple of hours until I know no refunds are requested. (The nature of the digital goods places a limited time on refund requests.) I keep getting an error: 579017 The amount for the primary receiver must be greater than or equal to the total of other chained receiver amounts
My Question is Is there any way to allow the primary to receive less money than the secondaries? In the Paypal documentation they have this diagram in Chained payments which shows the primary getting less than the secondaries, but I cannot make this work in practice in the sandbox.
There is an image here showing the primary getting less than the secondaries PayPal documentation
Thanks in advance for your help!!
Sounds like you just have the amounts wrong. When working with chained payments the primary receiver amount should be the total amount of all payments. Then the secondary amounts would just be what they are supposed to get.
For example, say $100 was getting split between 3 people. You might set that up like this...
Primary Receiver Amount = $100.00
Secondary Receiver Amount = $50.00
Secondary Receiver Amount = $30.00
What would happen here is the primary receiver would get the full $100, but when the secondary payments were triggered it would send those payments accordingly, which leaves the primary receiver with $20 while the secondary receivers got $50 and $30.
Make sense?

Paypal Mass payment Fee Charge

It is unclear how much paypal charges when we do mass payment from our application.Would anybody let me know the details.
currently i found "For Mass Payments to recipients within the U.S., the fee is 2% of total up to $1 per payment. For Mass Payments to recipients outside the U.S.,the fee is 2% of total up to a maximum of $20.00 USD per payment, or the foreign currency equivalent of $20.00 USD."
information in paypal site.
what if i send 6000 $ to one/two user?Any answers and suggestions would be highly appreciated.
Paypal is very poor in documentation and do not have intuitive guide.
Thanks.
For example in the case of your 6000 dollar transaction. If it is a Domestic transaction you would be charged $1 fee for that transaction and if it was international it would be $20.
The breakdown is basically as the information you provide. Each transaction is charge to either the percentage or the fixed amount, whichever is lower. This fee is charged for each payment in your request. So if domestic a 50 transaction request would be a maximium of $50 or $1 per transaction. While internationally this would be $1000 for the same 50 transactions.

Paypal - Adaptive Payments

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.

paypal fee calculation

I am using PayPal Adaptive Payment and I want to know how PayPal calculates it's fee
I check the following link https://www.x.com/message/60352;jsessionid=54722E9CCAC2DE9E28CAA411F16AB457.node0#60352
It says
PayPal charges 2.9% + .30 cents per transactions (unless your montly volume qualifies you for a lower rate).
Where as, following calculation doesn't work in my case
I have $24.49 product, and PayPal fees is 0.39 (which doesn't match with above thing)
anyone have idea how it gets calculated?
Edited:
These are IPN values for $100 transaction :: [mc_fee]=>0.42 [mc_gross]=>100.00
Thanks
0.39 seems too low. Check this http://www.rolbe.com/paypal.htm out.
You can use a PayPal fee calculator that take into account all the parameters of the transaction like your country and currency and whether it is a domestic transaction.
Here is a link to the calculator that I use: http://www.convertforfree.com/paypal-fee-calculator/