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PayPal Payment Scenario

Posted on 2013-06-09
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Last Modified: 2016-03-24
I am creating a site which has products from different users.

A customer comes to the site and adds 10 items to their account. Each item could be from a different "reseller" who gets a certain percentage of the transaction. Then there could be a Sales Person who also gets a certain commission. Then, the website gets the remaining balance of the transaction.

1) User Buys an Item
2) Reseller (person who owns that item) Gets a Percentage (each user is different)
3) Sales Person (if there is one) gets a Percentage

We thought PayPal's Adaptive Payments was the solution, however we found out that we can only have up to 5 receivers (or 6 including the primary receiver) with chained payments. Is there a way to have unlimited receivers?

If not, please help us find another option. If the customer added 10 items to their cat obviously that exceeds the max 5 receivers after paying each reseller and each sales person.

Another thought, we could just go with a normal payment scenario. Send all funds to the site, then track each order detail to the database. Later on, after payment we use our own script and database to make an API Payment Call to each Reseller and Sales person that needs to be paid. Is this a possibility? Does paypal have a service for just sending funds directly from our account to another User without needing input from either user?
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Question by:tonyhhisc
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Expert Comment

by:Randy Downs
ID: 39233083
You could just limit your cart to 5 items.
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Author Comment

by:tonyhhisc
ID: 39233102
That is not an option. We don't want to possibly miss a sale because they couldn't purchase everything they wanted. Thanks though.
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Accepted Solution

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Andrew Angell earned 500 total points
ID: 39233958
When you submit your application for approval you can request that they expand your account so you can send to more receivers in a single payment.  There's no guarantee they will, but they could, so it won't hurt asking.

If they won't do that for you, then you could indeed do it like you said where you send everything to a single PayPal account and then pay out from that.  The thing is, PayPal would prefer you not do this, which is one of the reasons they opened up the Adaptive Payments platform, so that point may be what gets them to go ahead and allow you to send to more receivers.

If it comes to that, though, you can use the MassPay API to push payments to 3rd party users.  With this method, the sender would be paying the fee, but it's only 2% of each payment with a max of $1.00 per payment.  

Alternatively, you could use the Pay API to send to a single receiver as oppose to setting up a split payment.  You could just loop through all the receivers on your order and submit a Pay call with that single receiver on each.
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Author Closing Comment

by:tonyhhisc
ID: 39245388
Thanks for your help.
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