Question

I'm currently building a web-app where users can create a product and sell it. Payments shall go directly into the sellers PayPal, but our companies PayPal should get a commision of x%.

I have looked into https://developer.paypal.com/docs/classic/adaptive-payments/integration-guide/APIntro/ and was wondering if it's possible to have the seller as the primary receiver without going through PayPal validation procedures, and the company PayPal as a secondary receiver which the commision will be sent to?

I want the user to be the primary receiver because it's not our job to respond to disputes, and because we don't want to be involved in the payment process, except for the commission's.

Was it helpful?

Solution

Contacted PayPal directly by mail and got the following response:

To answer your original question, the PayPal validation procedures apply to the application owner or API caller. That account holder must get approval from PayPal to use and execute Adaptive Payment API calls based on the payment model and business model you hope to build. The configuration of the actual recipients of the payment does not require PayPal approval. So assuming that your application has been approved by our review team then you can configure the seller as the primary receiver and your company's PayPal account as the secondary receiver. In fact the payment model you suggest is how we recommend app's to use these API's to avoid disputes etc.

Clarified things a lot.

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