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.
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:
PayPal adaptive payment supports 3 payment types. Simple, Parallel 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.
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.
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.
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.
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: