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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.

user2003356
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2 Answers2

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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.

Drew Angell
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    Thanks Andrew. Can you please explain in detail about the multiple receiver in Payment Standard or Express Checkout method? It would be helpful for me. Thanks in advance!!. – user2003356 Aug 27 '13 at 09:54
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    If you go that route you would setup the checkout system so that all of the money gets paid to a single PayPal account. Then you would pay from that account to another account using the Pay or MassPay API. This could be done within IPN, though, so that it happens automatically in real-time when the original transaction occurs. – Drew Angell Aug 27 '13 at 09:59
  • If I integrated the Chained Payments in website, Will I be redirected to PAYPAL site while doing payment process? – user2003356 Aug 27 '13 at 10:01
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    Yes, unless you're using Preapproval profiles. You can use the Preapproval API to create profiles that allow your applications to make payments on behalf of other PayPal users in the future. If you pass a preapproval key into a Pay request (single, parallel, chained, or whatever) then no redirect would be necessary. – Drew Angell Aug 27 '13 at 10:04
  • Andrew, your solutions are more helpful for me. Could you please illustrate that how to use Pay or MassPay API to transfer money to another account and how to do within IPN. Please clear it. – user2003356 Aug 27 '13 at 10:05
  • Important: Adaptive Payments is not available for new integrations. PayPal provides this documentation to support existing integrations. Dear @DrewAngell do you have a solution or any idea to achieve the same results, since Adaptive Payments not supported anymore? Thanks! – Robert Apr 25 '21 at 01:34
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Adaptive Payments are deprecated by the time I am writing this answer. What you can do is letting the owner of the website receive the payment to his PayPal account and then use Paypal Payouts to transfer the merchant's money. For example, if you are getting 5 percent of the payment, you have to transfer 95 percent of the received money to the merchant. The steps are as follows:

  1. Let the user make payment to the website's owner account using Paypal API.
  2. Upon receiving the payment, i.e. receiving a call to your webhook, you have to use Paypal Payouts to transfer whatever you own to the merchant.

This way, you have to keep the merchants' PayPal accounts in your database, and there is no need for you to access their PayPal merchant keys.

You can check my answer about using webhooks here.

Abdul Razak Zakieh
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