PayPal transfers
PayPal transfers

PayPal Payouts

PayPal is a widely used payment method. Most customers already have a PayPal account. They will be able to connect it to your website only with a simple email address.

Important ! Enabling Paypal Payouts

Paypal doesn’t activate the Payouts feature on Business accounts by default. Therefore, you’ll have to contact Paypal and meet somre requirements.Requirements will vary depending on the country but here are the basic ones :

  • Your company must earn more than $100.000/year
  • You can pay your recipients in one of the 24 main currencies
  • Recipients don’t have to pay fees. You will pay a small fee for each transaction
  • Payments can only be made with your Paypal credit. Your Paypal credit must exceed the amount of Payouts and fees
  • Recipients will receive funds on their Paypal account. If they don’t have one, they must create one

To our knowledge, the only possibility to enable Paypal Payouts is to contact the Paypal support by chat of phone directly and send them the request. They will respond within 15 days.

To send money to your customers, a few actions are required, these are described below.

Enable and setup this payment method by going to this page:

WordPress Admin
Payouts
Your Payment methods
  • Enable : This allows your customers to enter a PayPal email and select this payment method for their Withdrawal requests.

API Connection

Several keys are required for your website to connect to your PayPal account and process payouts.

First, you have to login to your PayPal account and visit the App & Credentials page (you may have to create an account if you do not have one already).

Take care to be in Sandbox mode first. After some test, if everything is right, switch to Production mode.
In Sandbox mode, no real money transfer occurs.

Inside PayPal, credentials sets are named Applications. It groups authorizations and webhook linked to your website.

If you already have an application for your website

You can use this App, no need to create a new one. Client ID and Secret values are required.

From the relevant line, copy/paste the Client ID value to your website Application’s Client ID field. Then copy/paste the secret value to your website Application’s Secret field. Finally, save changes.

In the PayPal dashboard, click on the App name to edit it and continue with web-hook creation.

If you do not already have an application for your website

Create a new PayPal application for your website. Click on the Create App button at top right of the PayPal website interface.

  • Set an App Name, why not your website domain.
  • Depending on the purpose of your website, select the Type that best suits it. If in doubt, do not hesitate to contact PayPal support. Here, we only require the payout API feature. Most of the time, you will select the Merchant type.
  • Finally, create the App.

This will lead you to a new page where you can copy/paste the Client ID value to your website Application’s Client ID field. Then copy/paste the Secret value to your website Application’s Secret field. Finally, save changes.

Continue with web-hook creation.

Create the webhook to let PayPal call your website

Here we focus on the App edition page you get from the PayPal Developer Dashboard → App & Credentials tab and edit your application.

Scroll down to the Features section. Ensure Payouts is checked into Other features and Save Changes.

Sandbox will allow you to test any advanced features.

But when it comes to production / Live mode, your account has to be authorized to use payouts!

Please contact your account manager or PayPal customer service team for assistance. Also you can click the account on developer dashboard under payout. Then click the enable link and start the application process.
If your first transfer results in a 403 AUTHORIZATION_ERROR, this could mean you missed this part.

Then scroll down a little more to the Webhooks (Sandbox or Live) section. Click on the Add Webhook button.

Fill the Webhook URL : the value is displayed in your website, under the Client ID and Secret fields. Click on the ? to expend the text.

  • The URL looks like this https://[my-site.example]/wp-admin/admin-ajax.php?action=lws_payback_paypal_webhook

Select the Event types : At least the events below have to be checked (find back the list in your website, under the Client ID and Secret fields. Click on the ? to see them). They are in the Payments & Payouts group.

  • Payment payouts-item blocked
  • Payment payouts-item canceled
  • Payment payouts-item denied
  • Payment payouts-item failed
  • Payment payouts-item held
  • Payment payouts-item refunded
  • Payment payouts-item returned
  • Payment payouts-item succeeded
  • Payment payouts-item unclaimed

Then save. And voilà. PayPal should notice you with a Webhook added successfully. The new webhook appears in the list.

Fees

You can charge on your customer credits or leave the fields blank.

  • Fixed fee : Add a fixed fee for the transfer, charged on customer’s credit for each payout. Leave empty for no fees.
  • Proportional fee : Add a proportional fee for the transfer, charged on customer’s credit for each payout. Leave empty for no fees.

See Requests Options to setup if user set amount with or without fees.

This is not fees that the gateway could charge you for a money transfer. This amount is charged on your customer local credits to discourage him from making too frequent small withdrawals.
Was this article helpful?
Dislike 0
Views: 58

Continue reading

Previous: Stripe transfers