PayPal Adaptive Payments Add-on for Dokan

What is Paypal Adaptive Payments:

Paypal Adaptive payments handles payments between a sender of a payment and one or more receivers of the payment. By simple words adaptive payment will allow you in your multiple vendor shop or Application to get % off each sale on your site or application platform.

Dokan Payment gateways:

Dokan theme based on WordPress Woocommerce. So, Simply you can say what gateway(s) you will use for Woocommerce will support Dokan as well. But, as Dokan is a multi-vendor theme where you can allow other sellers to sell their products on your site. Now, the question rise – How do i pay those sellers as admin?

Well, Dokan has a very simple built-in manually option for that – Paypal Mass Payment. Please check Dokan's Documentation here for more details.

Why Paypal Adaptive payments?:

So as Admin user you may find it difficult to track each and every sales and payout you vendors manually. So, here it comes Paypal Adaptive Payments solution.

Adaptive Payments has operations that enable the sending and receiving of payments involving two or more parties. Each Adaptive Payments API transaction includes a sender and one or more receivers of the payment. Each transaction also includes the application owner, called the “API Caller,” who is an invisible third party that provides the transaction flow and is the entity that makes the API calls. In most scenarios, payment transactions are initiated by the buyer (in a send type of payment arrangement) or by the seller (in a pay type of payment arrangement).

So,You are the owner, such as a merchant that owns a multi-vendor website based on Dokan. Your website is the caller of Adaptive Payments API operations.

AP_overview

More Details:

You may be both the owner and a receiver (seller). For example, as the owner of a website, you are the receiver of payments from the senders who are your customers. The following diagram shows the relationship between a sender, you as a receiver, and PayPal:

AdapPymntRolesApp_A

You are not required to be a receiver(seller). For example, if you just the owner, you are not required to receive payments directly. You can facilitate payments between the sender and receivers that provide the actual goods. The following diagram shows the relationship between a sender, you as owner that directs payments to receivers, and PayPal:

AdapPymntRolesApp_B

And last diagram shows the relationship between a sender, you as owner that directs payments to receivers, and PayPal in a chained payment:

AdapPymntRolesApp_C

Payment Types:

PayPal adaptive payment supports 3 payment types. SimpleParallel and Chained. Dokan uses only Parallel and Chained types. In a Chained type you may chose who will be primary receiver you or your seller.

Parallel Payment:

A parallel payment is a payment from a sender that is split directly among 2 receivers (Paypal supports up to 6).

The following example shows a sender paying 3 receivers in a single parallel payment:

KindsAdapPymnt_B

In Dokan parallel payment is made to Seller for product and commission to shop owner.

Chained Payment:

In a chained payment, the sender pays the primary receiver an amount, from which the primary receiver pays secondary receivers. It is an extension of a typical payment from a sender to a receiver, in which a receiver, known as the primary receiver, passes part of the payment to other receivers, who are called secondary receivers.

The sender only knows about the primary receiver, not the secondary receivers. The secondary receivers only know about the primary receiver, not the sender.
You must get permission from PayPal to use chained payments. See how to get started.
KindsAdapPymnt_C
There is most one primary receiver (application owner/you) and 1* secondary receivers (someone who sells on your site).

International availability and fees

You can use Adaptive Payments in any country where PayPal is accepted.

You can hold multiple currency balances in your PayPal account or convert a currency balance at competitive rates. There are fees for currency conversion and to receive payments from another country.

For details, see Transaction fees for cross-border payments.

Fees schemes

Receiver Pays the Fee in a Parallel Payment

If the receivers pay the fee in a parallel payment, each receiver pays a portion of the fee, based on their assessment. The following example shows the receivers paying the fees:

FeePymntConfig_B

Each Receiver Pays the Fee in a Chained Payment

If the receivers pay the fee in a chained payment, each receiver pays a portion of the fee, based on their assessment. The following example shows the receivers paying the fees:

FeePymntConfig_C

Primary Receiver Pays the Fee in a Chained Payment

If only the primary receiver pays the fee in a chained payment, other receivers pay no fees. The fees paid by the primary receiver, however, are based upon the total fees assigned to all receivers. The following example shows only the primary receiver, identified as the merchant, paying all fees:

FeePymntConfig_D

How to get started

Configure PayPal

  • Check your account status. Login to PayPal. Go to your PayPal Profile and click My settings. Confirm that your “Account type” is eitherPremier or Business, or upgrade your account.
  • Check your API settings. Click My selling tools. Expand “Selling online” if needed and check “API access.” Click Update and Add or edit API permission or View API signature.
  • To get your application live, follow the submission steps outlined in Going Live with Your Application. When you submit your application to PayPal for review, the application is quickly scanned for the requests to PayPal operations. If no “advanced” operations are found, PayPal issues an App ID for the production servers at the time you submit the application. If your application uses “advanced” PayPal operations, or if your application implements a complex business model, you can expect the review to take approximately 10 – 15 days.

Configure Dokan

Install your Dokan Paypal Adaptive Payments add-on plugin as regular WordPress plugin. After activate it bellow options should be visible under Woocommerce -> Settings -> Checkout.

Now, lets see how it looks like at backend:

paypal_settings_dokan

Let me describe what those parameters are.

  • Enable/Disable – Enable or disable adaptive payments.
  • Title – Gateway title or label which will be shown at front-end checkout page to customers.
  • PayPal Email: Your paypal email address
  • Payment system: Choose your payment system –
    • Parallel – When payment is made parallel to seller and site owner at the same time.
    • Chained you are primary receiver – When you receive all amount, keep commission and send rest to seller.
  • API – all API settings including API UsernameAPI PasswordAPI Signature and API Application Id you get when approve your application with PayPal.

Seller Percentage:

From Dokan v1.0.3 you can set your seller's percentage from their Profile. Now, its a great option to offer your different sellers different percentage offer based on their sales volume.

Buy Paypal Adaptive Payments Add-on:

Buy this add-on from here.

Hope we have covered everything you need to know about Paypal Adaptive Payments to work with Dokan. Still need help? Ask us on our dedicated forum .

Thank you.

23 Comments

  • Joe Bloggs

    Joe Bloggs

    Hi Guys,

    I have a question. If i use the Paypal Adaptive payments, chained payments in this case, upon the buyers payment for the product, is the money transferred to the seller immediately or is the money held somewhere until the order is marked as completed and then the payment is released to the seller ? Could it be done this way ?

    Many Thanks

    • Mahi

      Mahi

      It depends how you applied to get approval from Paypal and configured your paypal settings. In Chained Payment as admin or Parent seller you can hold the money for certain time (i think up to 45days).

  • Simon

    Simon

    Can you please setup a demo site where we can do a sandbox transaction to see if this is implemented correctly as i’ve heard mixed reviews on the implementation of adaptive payments and would like to see how it works before we buy it.

    thanks!

  • Simon

    Simon

    Hi Guys,

    You appear to be missing some very important features in this plugin:
    1) who pays the fees
    2) Payment type (as per the PayPal API) :
    – The type of the payment. Note that person-to-person works only with Parallel transaction types.

    GOODS – This is a payment for non-digital goods
    SERVICE – This is a payment for services (default)
    PERSONAL – This is a person-to-person payment
    CASHADVANCE – This is a person-to-person payment for a cash advance
    DIGITALGOODS – This is a payment for digital goods

    Plus some super features that will help with small transactions where there is no point to take 3 cents :
    a) “Minimum purchase amount” : Sometimes it is senseless to take commission on orders lower than 1 USD or may be used as part of promotion. For example you do not take commissions on orders lower than 2 USD.

    b) “You interest per transaction” : This is addition to % or only interest. This will be commissioned as fixed amount per transaction.

    The lot are listed here in this plugin for joomla : http://docs.mintjoomla.com/en/cobalt/adaptive-payments/

    add them and i’ll purchase.

    thanks!@

    • Mahi

      Mahi

      Hello Simon,

      – Who pay the fees already state on “Fees schemes” section.

      – Minimum purchase amount can be controlled by Woocommerce nothing with paypal adaptive plugin.

      – Dokan been build for commission based. so, no plan to make it as fixed amount.

      I guess, you mixed up with that joomla plugin. Woocommerce offers itself maximum features you listed above.

      Thanks

  • Joel

    Joel

    Hello,

    I’m interested in this plugin

    This plugin only works with WooCommerce? Or I can use it on any wordpress

    This plugin only works with WooCommerce? Now I can use it on wordpress template Any or website

    • Mahi

      Mahi

      This plugin only Works with Woocommerce and Dokan theme.

      Thank you.

  • Ben Glancy

    Ben Glancy

    Hi,

    I notice that PayPal Adaptive payments only allows up to 5 receivers in one Adaptive Pay request. How does Dokan deal with the case whereby a buyer has products in their basket from more than 5 buyers?
    Ben

    • Mahi

      Mahi

      Hello Ben, From newer version of Paypal Adaptive payment add-on, user can’t buy from more than 1 seller if you set that from admin area. Because, in Paypal Adaptive payment model only 1 person is responsible for refund which is dangerous for a Marketplace. So, we restricted this.
      Still you can use it for up to 5 sellers if you want to, but then admin will be the primary receiver and buyers can’t add products from more than 5 different sellers. It will show error notice.

  • Hakama

    Hakama

    Now I am looking for the solution to set put chained payment into my website powered by WordPress, I think this solution looks good.
    Is Dokan released for only for theme? Can I set up this solution into my own theme to use Dokan plugin?

  • Akaash Garg

    Akaash Garg

    Hi, We are launching a marketplace in India where paypal do not work. We have payumoney as our payment gateway which do not support adaptive or parallel payment option. Can we use Paymoney as a gateway to take all the amount at our side than release the payment accordingly with your marketplace plugin.

  • Clifford Hill

    Clifford Hill

    I don’t see anything about how shipping is handled with Paypal Adaptive Payments (PAP). There are two shipping fee routes using Parallel Payment method I’m exploring and I have no idea how PAP handles either: Shipping fees using a percentage of the subtotal or flat rate per product shipping fees.

    Since I’m using a multi-seller situation in Dokan, I would like to know whether PAP takes the percentage shipping fee and then distributes a percentage of the shipping fee to each seller based on the amount attributed to each seller. For example, if I’m charging 10% shipping and seller A’s subtotal in the order comes to $200 while seller B’s subtotal comes to $100, does the PAP plugin then divert $220 to seller A and $110 to Seller B? Moreover this doesn’t take into account the percentage subtracted for the primary receiver (the multi-shop owner who’s running the online collective). If PAP does subtract a percentage, can it be set to only subtract from the subtotal and NOT also the shipping fees since that rightfully belongs to the seller for shipping.

    Finally, if I use a per product flat rate for shipping, how does shipping get diverted to multiple sellers minus the percentage to the primary receiver?

    Sorry this is so long and complex, but, like I said, I don’t see any info concerning the important subject of shipping fee distribution. Thanks for any help!

  • Muabs

    Muabs

    Hello,

    Is it possible to change the commission percentage is a coupon is entered?

    Thank you!

  • Gladys Myrrh Requina

    Gladys Myrrh Requina

    Hi, I am encountering SSL connection error upon checkout using this paypal adaptive payment . Can you help?

    Thanks

  • Prinze

    Prinze

    I’m trying to set up Paypal Adaptive payments but I’m confused about:
    API Username
    API Pasword
    API Signature
    APP ID

    I don’t see any of those provided by Paypal. However, they have API keys (public/private), Tokenization Keys, Merchant ID and CSE Keys. Please help.

    • Sekander Badsha

      Sekander Badsha

      Hello Prinze,

      Here is the detailed documentation for PayPal Adaptive Payments Extension- https://docs.wedevs.com/docs/dokan-add-ons/paypal-adaptive/

      I have been informed that PayPal has limited access to their adaptive payment system. You may consult them before purchasing this extension.
      If you have any confusion about our system or having difficulties configuring it, please use the contact form to get help from our support team.

  • Hasan

    Hasan

    Hi What is the difference between, Woocommerce Paypal adaptive payments vs Dokan Paypal adaptive payments? would either of them work with Dokan Marketplace plugin?

  • Nayem

    Nayem

    Hello Hasan,

    WooCommerce PayPal Adaptive plugin works with WooCommerce only and you will have to insert the receiver e-mail manually for the specific product- https://docs.woocommerce.com/wp-content/uploads/2014/07/wc-paypal-adaptive-payments-product-tab.jpg . Admin will insert the receiver manually 🙂

    As Dokan has multiple vendors functionality for that reason, we had to implement our own PayPal adaptive add-on to split the payment directly to the vendor and admin and receiver will be found automatically (Vendor settings required). So, you can use Dokan PayPal Adaptive Payment with Dokan Multivendor Marketplace plugin.

    If you have more questions then please fill up the contact form- https://wedevs.com/contact. Our support team will help you.

  • Jen Shannon

    Jen Shannon

    How does the vendor specify their information in order to get paid automatically? I created a seller account for myself to see the backend and how it works and I don’t see any options on where to enter my payment or stripe info in order to allow the seller to get paid automatically.

    • Mainul Kabir Aion

      Mainul Kabir Aion

      Hi Jen,

      You have to navigate to wp-admin →Dokan →Settings→ Withdraw options → select withdraw method as PayPal/Stripe. Afer that, on vendor dashboard → settings → payments your vendor will get PayPal and stripe gateways. Your vendor has to add their PayPal and Stripe information.

      Cheers 🙂

  • rumo

    rumo

    Is there a way to make Vendor as primary receiver and Marketplace as secondary in chained payment option?

    • Mainul Kabir Aion

      Mainul Kabir Aion

      Hi Rumo,

      If you are using PayPal Adaptive Gateway with chained payment method, then it is possible to set the primary receiver ((fees payer) as vendor from PayPal adaptive settings. For more information, please create a support ticket or send an email to support@wedevs.com

      Cheers 🙂

  • Hamish

    Hamish

    Is paypal freely giving out access? Is it reasonable to pursue this option?

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