CODEWITHSUNDEEP
paypalpayment-gatewaypaymentpaypal-adaptive-paymentsmarketplace
Chow Yao Fong
Chow Yao Fong

Reputation: 23

Which PayPal setup is best for marketplace?

Let me first explain how our web site works.

  1. Buyer purchase a service on our marketplace via PayPal, and then wait for approval from service provider
  2. If provider doesn't approve or time lapse, then we (the marketplace) refund to buyer
  3. If provider approves, then we (the marketplace) hold the payment until the service is provided by the provider
  4. If there is no dispute between buyer and seller after 3 days, we will pay the fee (deduct marketplace fee) to the service provider.

Initially I was thinking to perform all the above manually, but after researching more about PayPal, I found that adaptive payments could have automate some of our processes.

Adaptive payment version:

  1. Buyer make a preapproved payment to us (the marketplace)
  2. If provider doesn't approve, then we (the marketplace) just cancel the payment
  3. If provider approved,then we (the marketplace) execute the preapproved payment, and then go through delayed chained payment
  4. 3 days after the service is done, and no dispute, execute the delayed chained payment to pay provider

However, there are some limitation in this:

  1. Our buyer may buy the service more than 90 days ahead, but delayed chained payment only hold the payment for 90 days.

While it is possible for us to manually send the fund to provider, but it is possible to write some code to automate the lapsed delayed chained payment?

  1. After googling about preapproved payment, some site owner complained that when they actually execute the payment, many buyer actually don't have sufficient fund or for some other reason that can fail the payment.

Is there any solution to lock in buyer payment first, then proceed it after service provider approves the request. So we (the marketplace) can hands off on the refund part.

Upvotes: 2

Views: 238

Answers (1)

Mangesh
Mangesh

Reputation: 1031

You can use Paypal adaptive payment.

First execute pay call with actionType of PAY_PRIMARY and wait for 3 day to pay to your secondary receiver (Provider).

Here is link to paypal documentation

Upvotes: 1

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