Home Forums WC Vendors Pro Support Got this response from Paypal Adaptive Payments

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Viewing 10 posts - 1 through 10 (of 10 total)
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  • #15523

    I followed up the KB about installing:

    And then I got this message:
    Hi and Thank You for your Submission,

    Before we proceed with our review, can you confirm that the seller will be the Primary recipient in the Chained payment & you will collect your fees as Secondary recipient? We will require you to set up the payment in this way so that they are the Merchant of Record in the case of any Chargebacks or Refunds. Please amend your selections in the ‘Services used by app’ — ‘Adaptive Payments’ — ‘Chained Payments’ section of your submission to reflect this. Note: You will need to click the App Name in the โ€˜My Appsโ€™ section of paypal-apps.com in order to expand and edit the fields of your submission form.

    Also, can you please clarify exactly what will be sold or paid for via your app? All extra detail you can provide will assist me to expedite my review.

    So I gotta be the secondary and my vendors will be primary?
    Not sure I understand.

    WC Vendors Support

    In the end, it doesnt matter how they set it up. Just say “Yea, that’s fine” and all should be well. The problem with PayPal is that they use humans for this stuff. ๐Ÿ˜‰

    WC Vendors Support

    In the end, it doesnt matter how they set it up. Just say “Yea, that’s fine” and all should be well. The problem with PayPal is that they use humans for this stuff. ๐Ÿ˜‰


    Thanks a lot.
    I will say that. Its cool that they use humans. And with that API info into WC Vendors PRO it should work as a charm right?

    WC Vendors Support

    Yup! The PayPal AP settings from Free also work in Pro. If you install Pro, you dont’ need to change any of your PayPal settings, it all just works normally.


    Just for your information, I received this:

    Hi and Thanks for your Response,

    I’m afraid i am still seeing your company entered as the Primary Recipient in the Chain with Vendors as Secondary Recipient. We require Vendors to be the Primary Recipient. Please amend your integration and confirm this will be the case by amending your Submission Form using the following steps:

    1. Within ‘My Applications’, click the App Name. This will expand the fields for editing.

    2. Under ‘Services Used by App’ — ‘Adaptive Payments’ — ‘Chained Payments’, you can switch your entries in the ‘Primary’ and ‘Secondary’ recipient fields.

    3. Please note, you will also need to amend your entry in the ‘Who is responsible for Chargebacks and Refunds’ field.

    4. Enter some comments

    5. Click ‘Resubmit for Approval’.

    6. Note: Please do not click ‘Save’ at any stage in the process.

    We will also require a full description of exactly what is being paid for in your app.

    WC Vendors Support

    Do what they say, then.




    This is the response I received from PayPal. How do I fix this?

    In a typical marketplace, the seller will become responsible for the entire customer payment including issuing refunds and resolving any chargebacks. The platform owner would receive their commission or fee that is split simultaneously when the customer’s payment is received by PayPal. The example for Chained Payments on https://developer.paypal.com/docs/classic/adaptive-payments/integration-guide/APIntro/ basically indicates that the primary receiver retains only their commission and allocates the remainder of the payment to the secondary receivers. The example on that page applies more to a travel agency type of business as opposed to a marketplace with a payment sent to one vendor only. With Instant Chained Payments, the primary receiver utilizes the Third Party Permission “Refund a transaction on your behalf” in order for the seller to be responsible for a customer’s refund or resolving their chargeback. We cannot support Chained Payments in a multi-vendor marketplace as the primary receiver/platform owner was the merchant of record and as a result, would assume the total financial risk of every payment from the PayPal customers using your website.

    Parallel Payments is the solution for a multi-vendor marketplace as each receiver (up to a maximum of 6) would be responsible only for their portion of a customer’s total payment in terms of refunds and chargebacks. You would implement coding for your commission into the app integration. With Parallel Payments, the buyer will see the amount sent to each seller. For example, if the customer’s order has 5 vendors, they will see 5 parts to the order with one payment sent to PayPal for the entire amount. Each seller will only see their part of the order. In order for you, the platform owner, to collect your fee, there are two options available with Parallel Payments.

    1. If you are ok with the sender seeing your commission for their order, you would need to be one of the receivers in the checkout flow. The customer’s order will show an entry for each vendor and another one showing a deduction for your commission.

    2. If you are not ok with the sender seeing your commission, you would use Parallel Payments for the order and Preapprovals to collect your commission from each vendor.

    I hope this helps. I apologize if my explanation was not communicated satisfactorily for you. Please feel free to contact our Merchant Technical Services Team at https://ppmts.custhelp.com/ if you would prefer a more technical flow for the process outlined above.

    WC Vendors Support

    In the end, it doesnt matter how they set it up. Just say โ€œYea, thatโ€™s fineโ€ and all should be well. The problem with PayPal is that they use humans for this stuff. ๐Ÿ™‚ ๐Ÿ™‚ ๐Ÿ™‚

Viewing 10 posts - 1 through 10 (of 10 total)
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