I am sorry to be long winded. I have been testing sandbox payments with PayPal adaptive payments (parallel payments) on the marketplace I'm building. I am trying to understand how all the money breaks down so I can begin creating my Fee Schedule for the website. I have been running simple transactions of $100 through my site to understand the process and be sure its all correct. As I am understanding my math on my sandbox test transactions, I am being charged 2.9% on only my website's cut of the sale (15%). There are no transaction fees applied to the 85% the vendor will take.
Question 1: Why is the transaction fee not being applied to the entire sale, and is this normal?
Question 2: Why is it taking 2.9% and not 3.4% of the sale price as adaptive payments is supposed to?
Follows is a test transaction:
In this test transaction, the marketplace gets a 15% of the $100 dollar sale plus a .30 cent processing fee from the vendor to cover PayPal's .30 cent fee. A $4 shipping fee is added to the website's 15% commission. So the website gets 19.30 ($4 shipping + .30 + 15%) and the vendor got 84.70 (85% - .30)
Marketplace Commission math: $19.30 (gross) - $4 Shipping= $15.30.
$15.30 - .86 (transaction fee) = $14.44 Net commission
Transaction fee as I understand it: .86 - .30 Paypal Fee = .56 cents.
.56 Cents / $19.3 (gross commission) = 2.9% transaction fee.
If this is correct, the $84.70 the vendor gets that is not having a processing fee applied to it. The vendor has no fees taken out of their $84.70.
Question 1: Why is the transaction fee not being applied to the entire sale, and is this normal?
Question 2: Why is it taking 2.9% and not 3.4% of the sale price as adaptive payments is supposed to?
