PayPal Adaptive Payments Add-on for Dokan

What is Paypal Adaptive Payments:

Paypal Adaptive payments handle 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 rises – 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.


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:


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:


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


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:


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.
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:


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:


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:


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:


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 the seller and site owner at the same time.
    • Chained you are primary receiver – When you receive all amount, keep the commission and send rest to the 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, it's 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.

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