CODEWITHSUNDEEP
javaphp.netpaypal
Palo
Palo

Reputation: 10761

Which Paypal method is better to use to payout users - Mass Payments or Adaptive Payments?

Users of my application accumulate virtual money on their account. After they have enough money they can choose to be paid out.

I would like to pay them out using paypal. The application is based on web. Users choose themselves when they want to be paid out (the pay out system does not need to be automated so that the payments occur lets say once per month).

I know that I can use either Mass Payments or Adaptive Payments. What is the difference between these two? Which one is better to use in my case?

Thank you

Upvotes: 3

Views: 1757

Answers (1)

ElCangri
ElCangri

Reputation: 156

I've been looking into this myself and from my very short investigation i have found:

Mass Payments
Allows you to transfer payment to multiple recipients at once. Sender pays the fees, however they are low compared to other methods of payment. (2% per payment, or $1 Maximum) Up to 250(?) payment receivers per call Initiate payments through either uploading a file to paypal or using API more details below

https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_api_MassPayOverview

Adaptive Payments
Allows you a bit more functionality than Mass payments, in that you can split a single playment, any which way you want to other receivers, it can happen in real time as someone purchases (eg: pay an agent their commision right away) or delayed. The primary receiver is for example your site, and you can have up to 5 secondary receivers to split the amount with. eg You run an auction site and you get a fee per sale, the person selling gets the rest, or you can have a dropship site, you get a commision, the person who reffered the sale gets a conmmision (affiliate) and the wholesaler gets the rest etc Fees can be configured a number of way, eg: You as primary receiver pay it all or have everyone pay their share There are different types of payments within this also eg: simple, parallel or chained payments, check out the link below to find out how they each work.

https://developer.paypal.com/docs/classic/products/adaptive-payments/

In your case I think mass payment sounds the way to go but you really need to compare fees based on how many payouts you think you will do over a month, the amounts you think you will pay, and whether your business model is flexible enough to schedule in a mass payment say once a month for all users, because for a mass payment you cant really allow your users to choose when they want to be paid out...if you do this you need to be able to do mass payments daily to cater for all users.

Hope this helps

Upvotes: 14

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