Paypal Question

[lawsu]

Hi,

I would like to understand as below:

1. Which paypal type should I subscribe as your FAQ only indicate Paypal Business.

Website Payments Standard (https://www.paypal.com/us/cgi-bin/webscr?cmd=_wp-standard-overview-outside&nav=2.0.0) Website Payments Pro (https://www..paypal.com/us/cgi-bin/webscr?cmd=_wp-pro-overview-outside&nav=2.0.1) Email Payments (https://www.paypal.com/us/cgi-bin/webscr?cmd=_email-payments-overview-outside&nav=2.0.2) Payflow Gateway (https://www.paypal.com/us/cgi-bin/webscr?cmd=_payflow-gateway-overview-outside&nav=2.0.3) Express Checkout (https://www.paypal.com/us/cgi-bin/webscr?cmd=_additional-payment-overview-outside&nav=2.0.4) Virtual Terminal (https://www.paypal.com/us/cgi-bin/webscr?cmd=_vt_hub-outside&nav=2.0.5) Pricing and Fees (https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-business-pricing-outside&nav=2.0.6) Compare Solutions (https://www.paypal.com/us/cgi-bin/webscr?cmd=_profile-comparison&nav=2.0.7) Shipping Center (https://www.paypal.com/us/cgi-bin/webscr?cmd=p/ship/center-outside&nav=2.0.8) Enterprise Merchants (https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/Marketing/general/CorporateSolutions-outside&nav=2.0.9)

2. Does Paypal work between site owner and user only? Does it work between user to user? Eg: Can bidder pay via ILance to seller once he has won the item using paypal gateway? Something like ebay bidder can pay directly to seller from ebay weblink to paypal.

3. If I were to input referral reward as $50, will this amount be deducted from site owner paypal account?

4. Eg : Referral Reward : $50, User deposit another $100. Online balance = $150.
Can user able to withdraw $150 - charges?


Thanks, I will be getting this wonderful script soon :)

[Peter]

1. Which paypal type should I subscribe as your FAQ only indicate Paypal Business.


ILance will use Website Payments Standard. This level also provides you with eCheck support as well.


2. Does Paypal work between site owner and user only? Does it work between user to user? Eg: Can bidder pay via ILance to seller once he has won the item using paypal gateway? Something like ebay bidder can pay directly to seller from ebay weblink to paypal.


Paypal, and/or other payment modules work by letting the users enter the "deposit menu" to deposit funds from their paypal accounts to your paypal merchant account. The software helps you calculate any fees you'll be charged via paypal so you're in a position to cater to your fees, percentages, etc.

If you are not using "Escrow" within the software on your marketplace, then basically your members are choosing to handle the payment "outside" of your marketplace. That means it is not yours, but their responsiblity to work with their trading partners to commence their transaction. That has little or nothing to do with your site. All your site is concerned in this process is if the project remains "awarded to that provider" and that both users, Buyer and Provider leave and rate each other using the feedback system so that aspect is logged.

As per the sending of a "weblink" that is not available but can be done in very little time with customization of the PHP. You will need a programmer to add that in for you.


3. If I were to input referral reward as $50, will this amount be deducted from site owner paypal account?


No. It's the other way around. Let's assume you are providing your "users who tell others about your site and get them to signup and/or register/pay for subscription" then you have the ability to set the "referral payout fees" you'll provide your users for helping bring new users to your site.

So in the referral manager you'll notice a wide variety of actions and events that can occur based on referred users, so it would be up to you based on your best judgement if that user referring other people should get a payout of $x. $x will be what you decide to pay out users. But if one user has referred 5 users who post auctions only, but then you have another user who referred 10 users who paid for a subscription, posted auctions, bid on auction (basically is doing more) you can override the $5 and put there whatever you want.. like $10 for example. So this gives you the chance to pick and choose how much to pay users out based on your own decisions and actions/events taken by the users.

And for the record, when your referrer's get paid, it's automatically credited to their online account balance. They can withdraw anytime, but you can also set withdraw limits.. so if you set your withdraw limit to $100 and they only have $5 in their account (from that payout) then they cannot withdraw :)

Keep that in mind ..


4. Eg : Referral Reward : $50, User deposit another $100. Online balance = $150.


Correct.


Can user able to withdraw $150 - charges?


Yes. He can withdraw his funds :) He would have to use the "Withdraw Manager" of course so it's also being tracked in your withdraw manager in the Admin CP so you know what's going on, who's requesting what, and so forth.


Thanks, I will be getting this wonderful script soon :)

Thanks again for looking at ILance. I'm positive you will not be disapointed in what iLance as a product (and as a team) have to offer :)

Regards,
Peter

[lawsu]

I appreciate such detail explanation.

I am especially concern in terms of transaction. (I am new to online transaction stuff and I do not want unhappy members)

How about the registration bonus? Member might not have enter their paypal, credit card during registration stage. When I put in $5 value for new member bonus, will this $5 be a "virtual $$" or it will be deducted from siteowner paypal? Bit blur on the workflow.

I read from the paypal that payment standard can also accept credit card, mastercard, etc. Does it mean I do not require member to have paypal account, they can use visa to deposit $$ in their online balance once I have paypal payment standard?

If I wish to turn on Escrow feature, what exactly is the workflow? Buyer will deposit $$ to siteowner paypal account. Once service are delivered, siteowner will payout $$ from siteowner paypal account to provider? (of course consideration of the charges)

Rgs
Lawrence

[lawsu]

Is my post not worth answering??

[Peter]

All posts are worth answering. The question is are you prepared to wait at least 24 to 48 hours for a response? :)

I appreciate such detail explanation.

I am especially concern in terms of transaction. (I am new to online transaction stuff and I do not want unhappy members)


Care to touch base on your concerns? It's pretty straight forward - Your member involks an action that requires payment, they see a pending transaction to be paid, and they pay it. If they don't pay it you can control the outcome.


How about the registration bonus? Member might not have enter their paypal, credit card during registration stage. When I put in $5 value for new member bonus, will this $5 be a "virtual $$" or it will be deducted from siteowner paypal? Bit blur on the workflow.


Registration is where the member begin's his adventure. ILance will present him/her with a interactive registration system to build the user's account. Once it's built, the user verifies himself and them can login and interact. At that point, when he's a real valid member he visits his subscription plan menu and pays for the subscription plan he selected during registration. You don't want dud-registrations and scam payments coming in. This is one extra step to avoid that.


I read from the paypal that payment standard can also accept credit card, mastercard, etc. Does it mean I do not require member to have paypal account, they can use visa to deposit $$ in their online balance once I have paypal payment standard?


ILance uses Paypal IPN which uses Web site Payment Standards. It doesn't matter if you member has a CC or funds in their paypal account, the point is when they are prepared to make a payment they land on Paypal and paypal handles it all. If that user is paying via CC or funds in his Paypal account.. sobeit. The point is that money (whichever way its being paid) ends up in your paypal account.


If I wish to turn on Escrow feature, what exactly is the workflow? Buyer will deposit $$ to siteowner paypal account. Once service are delivered, siteowner will payout $$ from siteowner paypal account to provider? (of course consideration of the charges)

Rgs
Lawrence

1. Buyer posts project choses to enable escrow for his listing
2. Buyer awards provider
3. Buyer pays into the escrow account for the amount won (payment goes to you)
4. Buyer waits for work to finish, provider sees money is available when job is finished
5. Buyer confirms the work, releases funds from escrow to provider. Remember since buyer paid YOU for escrow and the funds are in your care, the buyer releases "virtual credit of that amount" into the provider's balance. Now provider sees he has $xxx in the account.. he requests a withdraw and you send him the money (because you already have it).

Regards,
Peter

[BidemsMartin]

Could somebody confirm the fee process?
1. Buyer awards provider and funds escrow.
2. PayPal takes their fees.
3. After work is finished, funds are released to provider minus commission fees.

If this is correct, can the buyer be charged an escrow fee to be paid along with the funds being deposited in escrow (to offset the paypal fees), causing the provider to be charged a percentage of the original amount rather than the amount after paypals fees?

My programmer is working with the script because i'm obviously clueless, but also curious for planning. if anybody could explain, i would appreciate it.

Thanks,
Martin

UPDATE: I found the answer to this question in a post titled, "How much is your marketplace making??"
I also realized, paypal=rape!

UPDATE: I noticed, while running a demo reverse auction, that the demo is set up to charge an escrow fee, then a "gateway" fee for paypal. I won't charge an escrow fee, but I'll definately charge a gateway fee.