What are the Available Payment solutions in Dokan Multi-vendor Plugin?

One common pre-sales question we often get is about the available payment solutions in Dokan Multi-vendor plugin. So here is a detailed idea about the available payment options and how to work with them in this post.

You can use 3 types of payment system in your Dokan powered marketplace –

  1. Offline – Cash on Delivery, Local Pickup, Bank and Cheque Payment.
  2. Online (Regular)PayPal, Stripe and every other WooCommerce compatible payment gateway that exists in the world till date.
  3. Online (Instant)PayPal Adaptive and Stripe Connect.

I have discussed some important points at the bottom of this post about choosing the right payment gateway and what depends on whom. Be sure to read that!

Offline Payments

If you enable offline payment options like – local pickup, cash on delivery, bank payments and cheque payments, then the order status will always be pending for payment. If you use this for a marketplace, then the admin will have to take quite a hassle to get commissions from the vendors. If you are interested in these methods, then the best option for you would be using the subscription add-on. It will allow you to charge the vendors before creating a product and keeping them online.

Though this one is more favoured by the customers, it requires an extensive amount of communication between the 3 parties- site owner, vendor and customer to keep track of order and payments. So This is the last option you should go for.

Regular Online Payments

As Dokan is based on WooCommerce, you can use any WooCommerce compatible payment gateway with Dokan. Here is a list of 114 available gateways from WooThemes. You can also use the ones available and CodeCanyon and other places that say WooCommerce compatible payment gateway.

When a product is sold from a vendor, the admin receives the money and vendor get notified about the sale. When the order is complete, the vendor can see the amount on his dashboard. After a predefined amount of time, the vendor can send an withdraw request.

There is no limit of vendors or products in this system. As there is a single recipient, the customer has all the freedom to purchase from your marketplace. The main advantage of using this semi-automatic system is that you  can offer your customers protection from fraud vendors and maintain an escrow system. This will help you to maintain the marketplace quality and your vendors will be forced to serve the customers better. The this is the best system according to me.

Instant Online Payments

This option is quite favorite among our Dokan users. Because the instant payment system saves the admin from making hundreds of manual payments to each vendor each month and keeping up their accounts and logs. Currently, we are offering PayPal Adaptive and Stripe Connect. These two are the most popular payment gateway right now in the eCommerce industry. You can use them without any hesitation and I would like to mention that they both accept all major credit cards.

These payment gateways can handle up to 5 vendors without any complication. There is no limit on how many products the customer can buy at a time. The only limit is the recipients. You can read more about PayPal Adaptive and Stripe Connects payments working procedure in these documentations:

  1. https://developer.paypal.com/docs/classic/products/adaptive-payments/
  2. https://stripe.com/connect

Good to know

Only admin will be controlling the payment options. So it does not matter if a vendor wants to enable a certain payment gateway or not. Because if you are not using an instant system, the choice does not matter on the vendor's end. The admin will receive all the money from the customers in a convenient way and distribute manually to the vendors whatever method they like.

But, as an admin if you are going to use an instant payment gateway, you must talk to your sellers first and take their opinion if they are willing to use that as well. So you can make sure that before you activate a payment gateway on the checkout page, your vendors activate that too.

Let's say, you activated Stripe Connect on the checkout page. But a vendor was away and his product is online. Whenever a customer tries to buy that product, he will get an error message like this:

Stripe Error Message

So it is always better to ask the vendors first and assign a specific time frame to activate and configure the gateway.

I hope my presentation of the details for the payment options help you to decide which one to use and which one works in which way. Feel free to comment below if you have a question for me or I need to add more details for you 🙂

19 Comments

  • Tesla

    Tesla

    Hi there!
    You mentioned that PP Adaptive can handle up to 5 vendors. My question:
    – Did you mean 5 vendors per checkout (customer bought products from 5 vendors) or it handles only 5 vendors in marketplace (total number of stores on marketplace website)?
    Thanks a lot!

  • Sekander Badsha

    Sekander Badsha

    Hello Tesla,

    Yes, 5 vendors per checkout if you use parallel payment method.
    If you use regular PayPal payments, which delivers all the money to the admin, then there is no limit.

    There is no limit on stores and customers. You can have as many stores, customers and products you want.

  • tesla

    tesla

    Thank you so much for clarifying that.
    I have one more quaestion if you don’t mind. Is there an option for customer to pay what they ordered through cart but instead of regular shipping to pick up that at store?
    That way I am anabling customers and vendors the pick up option but also I have a track of transaction and can charge commission.
    Thank you in advance!

  • Sekander Badsha

    Sekander Badsha

    That is definitely possible through Local Pickups.
    Local pickups is a built in feature of WooCommerce and compatible with Dokan.
    Please read the doc here to know about how local pickup works and how to configure it. https://docs.woothemes.com/document/local-pickup/

  • Alan Nicolas

    Alan Nicolas

    Hey how can i pay my vendors with other method, not paypal? Im from Argentina and i want to pay manually every month my vendors with MercadoPago, can i?

  • Sekander Badsha

    Sekander Badsha

    Hello Alan,
    If you do not use any instant payment gateway, then you can use anything to pay the vendors. If MarcadoPago has a WooCommerce compatible gateway, then you can use that to take payments from the customers and later you can pay the vendors manually.

  • FerVaira

    FerVaira

    Hi. Are you sure Mercadopago WooCommerce gateway will work? It seems contradictory to me that I’ve read this about Dokan on its page: “You can use any WooCommerce plugin in the backend as you normally used to do. But in Dokan system, sellers operate everything from frontend, and most of the plugin is not compatible for that. Till now we have found three plugin which is compatible with Dokan. – WooCommerce PDF invoice and packing slips. – Woocommerce points and rewards – WooCommerce wishlist. ”
    A MercadoPago payment solution could be decisive for choosing Dokan for most Latin-American projects.

  • Sekander Badsha

    Sekander Badsha

    Any WooCommerce gateway that is not compatible with Dokan, will deliver the payment to the admin. Because all the settings will be in the backend and that will be configured by the admin. Only the product prices will be going from the products. So in the checkout process, the customers have nothing to do with the vendors.

    The admin will receive all the payments via Mercadopago from the customers. The accounting will be done by Dokan and will be shown on both admins reports and vendors reports. The admin will have to pay the vendors manually after a certain time.

    You can give it a try. If it does not work like I have described above, we will be happy to issue you a full refund. So you have nothing to lose 🙂

  • FerVira

    FerVira

    Thanks, Sekander, for clarifying it!
    MercadoPago truly simplifies payments to latin american customers (i.e. it instrumented easy ways to pay anywhere for those who doesn’t own a credit card). But it charges a 7.1% total commission to the receiver of each transaction (made outside MercadoLibre.com), so it would be fairly great for we the admins if Dokan could develop the way to make the payments be credited to vendors, otherwise the admins have to increase commissions (selectively? kinda headache!) to afford this 7.1% for vendors who opt for this payment method. I guess it’s just two fields (ID and token) that the system should pick up from vendors dashboard instead of admins, but well, I may be wrong, I’m a designer, not a system developer, and this is just one of the 114 payments gateways for woocommerce.
    Sorry for this extended comment, and again, thanks for answering my doubt. You gave me one more reason to choose Dokan. Cheers!

  • Sekander Badsha

    Sekander Badsha

    We always welcome criticism from you. And believe it or not, all of our new features came from the ideas of people like you!

    Till now we have only got 2 more requests to integrate MercadoPago with Dokan. But we have a lot in our hand to work on. So we are unable to work on this right away.

    You may post on a freelance marketplace asking for a developer. We will definitely help you with the necessary information to get started.

    You can even sell the integration from your site if you want and we can help you promote the solution. For more information about this, please use our contact form.

  • liam read

    liam read

    using wordpress with an eCommerce website
    i want my store owners to use paypal to get paid
    but as im the admin of the site i want to get paid Via Stripe.
    just the commisson.

    so the vendors gets the money straight away in there paypal account. but before that the commission comes off to my stripe account ? is this possible to do ?

    • Sekander Badsha

      Sekander Badsha

      Hello Liam,

      Stripe and PayPal does not have any feature to work together as a single gateway. The customer can not pay using two different gateway for the same cart.

      So you have to use either Stripe or PayPal. If you do not want to pay the vendors right away, you can use any gateway you want.

      • expert

        expert

        Hello

        I have connected strip account in my website and i have collect all payment into my account and after 7 day i will pay to my vendors so my question is can I pay to vendor automatically. means vendor requested to release payment and after my approval from admin panel then vendor received payment auto or I need to go my stripe account and then after to pay my vendor

  • Felipe

    Felipe

    Hi, i installed MERCADOPAGO PAYMENT GATEWAT but it does not appear in Dokan PAYMENT settings, only appears paypal, bank transfer. How can I enable or add more payments methods so the vendor can get withdraw with mercadopago?

    • Mainul Kabir Aion

      Mainul Kabir Aion

      Hi Felipe,

      Thank you for your query. You will need to do some customization. It would be better if you create a support ticket or contact the support team at support@wedevs.com

      Cheers 🙂

      • expert

        expert

        Hello

        I have connected strip account in my website and i have collect all payment into my account and after 7 day i will pay to my vendors so my question is can I pay to vendor automatically. means vendor requested to release payment and after my approval from admin panel then vendor received payment auto or I need to go my stripe account and then after to pay my vendor

        • Nayem

          Nayem

          Hello @expert,

          If you are using Dokan stripe connect then your vendor will get their payment directly to their own stripe account. Manual withdraw request is not needed for this system. Now if you are using standard stripe like as WooCommerce Stripe then yes, your vendor will have to send withdraw a request to you then you (Admin) will approve the request. After approving the request, you have to send the vendor payment to their own stripe account from your stripe dashboard 🙂

          If you need more information then feel free to contact us- https://wedevs.com/contact 🙂

  • natascha

    natascha

    Hi! i wanted to know if Dokan is compatible with mercadopago?
    Mercadopago has a woocommerce integration. But will it work with dokan?

  • Anup

    Anup

    Pre Sales Question. What if a vendor has its own shipping and the customer chooses COD option. In that case, the vendor will receive the money and he will still be able to withdraw because it will be updated in his account balance, we will not get commission either because money would go directly to vendor, is there any option to disable the COD if Vendor shipping is on.

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