Hi everyone, I'm in the process of opening a small website, where I'm the middle man between buyers and sellers. I'm not sure, which is the correct way for sending money from buyer (who first sends the money to me and I take a small percentage from that) to seller. Should I use the "Purchase" or "Personal" option (please see the attached image)? The items bought will be physical and digital. I'm currently not as much worried about PayPal's commissions for different modes (are they same for all?) as making sure, that everything is correct in PayPal's eyes. I would very much appreciate your help on clarifying this. Cheers!
Sorry, I'm fairly new to this forum, and now I see there is a PayPal sub-category. As far as I know, I can't change the category now... My apologies.
You can't. This sort of processing isn't allowed by paypal or any other processor. The transaction must only be between the buyer and the seller.
Hi and thanks for your answer! I've contacted PayPal a few days ago, just in case, and asked them the same thing. I've got a reply from them, which was not very specific (they've just explained the two Send Money methods in detail), but pointed out this: "Please be aware that when you receive a payment through PayPal you will receive the whole amount and you will pay a fee for receiving payments." Do you know, by any chance, how does the Fiverr.com then do this? I thought they first receive the money, take a dollar away from every $5, and send the rest to the receiver. Thanks!
Either they're going against Paypal's TOS and just hoping they don't get caught, or they made a deal with Paypal that allows them to process as an aggregator. I would say they're riding a fine line regardless of what method they are using. Statements like this are pretty risky in themselves. Both Paypal and a Credit card issued by a bank would have serious problems with policies like this since it penalizes a cardholder for using the established protection mechanisms. What you're looking for is called aggregating or 3rd party payments. You could ask Paypal directly about it.
I appreciate your help on this. OK, I'll ask them directly, as you suggest. Thanks for giving me a term for it. I'll let you know the answer. By the way, is there any solution out there, that would be suitable what I intend to do?
Hello. I've received an answer from them. That's the important part of the answer. Well, I'll try to do my business as described before, and if it turns out that this doesn't suite PayPal (even if they've told me everything is OK), I'll just switch to memberships and ads. Thanks for your help!
Good to hear. I knew they had stated in the past that they were going to do some sort of 3rd party payment type service. Guess they finally have something available.
I've already started some transactions like this and no problems so far. I'll let you know if anything should go wrong. Happy Holidays to everyone!
Correct. @INDIAN123: If my account would really get banned, I would switch to memberships and ads. However, I've got two official replies from PayPal, that they don't see a problem with taking a provision and sending rest of the money to seller.
Your paypal account did not get ban until some unofficial transactions or suspicious problem generate.
Sure, I understand that, but as I already said - I notified and asked PayPal if I can take provisions and they said yes - 2 times, in fact. Anyway, if for whatever unknown reason I would have trouble, I will notify you guys. Merry Christmas!
Hi guys, just a quick follow up question - does anyone one, what kind of payment does Fiverr or Elance use? When both of these send you money, PayPal doesn't deduct anything. But when I receive payments from individuals, PayPal always takes their fee. So, do Fiverr and Elance use some different kind of accounts? Thanks!
I believe they use a mass payment feature, which is similar to sending a paycheck to an employee or contracted worker. Not sure how exactly it would apply to your situation, but people that try and use it to send free payments typically get suspended pretty quickly. You would definitely want to check and see if the mass payment option is more appropriate.
It would be like, you get paid from buyer and later you pay the seller with your cut. But mind you. Lots of charges will be made to you by PayPal as their commision. This could make the deal costly