To set up your PayPal account:
1. Click the Configuration tab, Setup Payments
2. Click Link Account for the PayPal
3. Click Login to PayPal
4. Login to your PayPal account OR create a new account
5. After logging in, click Agree and click Done to save!
If you use our PayPal payment gateway, PayPal payment fee will be a percentage of the total transaction value plus a minimal fixed fee per transaction of 3.9% + 50 cents. The percentage and fixed fee will vary by country/ currency.
You can check the pricing for your country through visiting https://www.paypal.com/sg/webapps/mpp/paypal-seller-fees and pick your country on the bottom right of the page.
Unlike Stripe, PayPal also charges a commission from the marketplace admin, so it is important to take note that your marketplace admin commission percentage should be enough to cover the PayPal fee. Therefore, in your PayPal payment summary, it will reflect 2 recipients as one payment is to you, the marketplace admin (admin fees) and another payment are to your marketplace seller.
To understand how the fees are calculated, here is an example for you to follow:
|
Before PayPal fee |
|
|
Admin commission fee |
5% |
|
Merchant 1 transaction value |
$10 |
|
Merchant 2 transaction value |
$20 |
|
Merchant 3 transaction value |
$30 |
|
PayPal fee calculations |
|
|
PayPal fee earned from M1 |
3.9% of $10 +$0.50 = $0.89 |
|
PayPal fee earned from M2 |
3.9% of $20 +$0.50 = $1.28 |
|
PayPal fee earned from M3 |
3.9% of $30 +$0.50 = $1.67 |
|
PayPal fee earned from admin |
3.9% of $3 +$0.50 = $0.62 |
|
After PayPal fee & admin commission fee |
|
|
Profit earned by M1 |
$10 - $0.89 - $0.50= $8.61 |
|
Profit earned by M2 |
$20 - $1.28 - $1= $17.72 |
|
Profit earned by M3 |
$30 - $1.67 - $1.50 = $26.83 |
|
Total admin commission fee earned |
5% of $(10+20+30) - $0.62 = $2.38 |
To Note:
1. Japanese yen (JPY), Hungarian forint (HUF), New Taiwan dollar (TWD) does not support decimals. If you pass a decimal amount, an error occurs.
Brazilian real (BRL), Malaysia ringgit (MYR) are supported as a payment currency and a currency balance for in-country PayPal accounts only. If the receiver of funds is not from Brazil, then PayPal converts funds into the primary holding currency of the account with the applicable currency conversion rate. The currency conversion rate includes PayPal's applicable spread or fee.
Indian rupee (INR) is supported as a payment currency and a currency balance for in-country PayPal India accounts only.
Click here for more information on currency codes for PayPal
2. If the admin and the seller are two different users, please make sure that they are not using the same payment account
3. If you decide to change your PayPal account, simply login with your new PayPal account under the Payment & transactions tab and follow the steps above, or refer to this article.
Alternatively, this video link will assist you in understanding the flow of payment for the payment method that you have integrated.
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