1. Home
  2. Docs
  3. Knowledge Base
  4. Dokan Multivendor
  5. Why Paypal Adaptive payments?

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 ChainedDokan 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

Was this article helpful to you?

How can we help?