clarification on the transaction fees and API development

kanhu2
Contributor
Contributor

Hello Team, Hope you are doing well and keeping safe. My start-up has selected PayPal as its dedicated payment portal. We just wanted to get a clear picture about the transactional fees in each of the scenario. Scenario 1. “Person A” (using PayPal) pays to the business’s PayPal account. Business PayPal account keeps a commission and transfer the remaining amount to the service provider’s PayPal Account Note- The person A and the services provider are not constant. They changes from transaction to transaction Q1. Can this be transactional model be developed Q2. What are the transactional fees that will be borne by the business PayPal Account? Scenario 2. “Person A” (using PayPal) Pays for the services. The amount then split into 2 parts from the sender (Person A) to Business PayPal account (commission) and the rest all amount goes directly to the services provider’s PayPal Account Note- The person A and the services provider are not constant. They changes from transaction to transaction Q1. Does PayPal allow the developer to build an API as such? Q2. What are the transactional fees that will be borne by the business PayPal Account?

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MTS-Aaron
PayPal Employee
PayPal Employee

Hi @kanhu2 

 

I don't believe Scenario 2 is really an option from my experience. However, Scenario 1 certainly seems to be the best route and there is a set rate for that, but it depends on country/currency. You can look at these fees in the standard transaction fees section of this page under Online Transactions.

 

So, the PayPal Commerce Platform for Marketplaces allows a merchant to accept a payment on behalf of a seller, then take a small fee as commission while sending the rest of the payment to the seller. This is all done with just one standard transaction fee which you can refer to the fees page I linked for that detail.

 

Hope that helps!

-Aaron

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MTS-Aaron
PayPal Employee
PayPal Employee

Hi @kanhu2 

 

I don't believe Scenario 2 is really an option from my experience. However, Scenario 1 certainly seems to be the best route and there is a set rate for that, but it depends on country/currency. You can look at these fees in the standard transaction fees section of this page under Online Transactions.

 

So, the PayPal Commerce Platform for Marketplaces allows a merchant to accept a payment on behalf of a seller, then take a small fee as commission while sending the rest of the payment to the seller. This is all done with just one standard transaction fee which you can refer to the fees page I linked for that detail.

 

Hope that helps!

-Aaron

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