Paypal fees in a chained or parallel payment

Question

I have an answer about how Paypal calculates the fees to apply to each receiver in case of a chained or parallel payment done with the Adaptive Payment API.

Is the fee calculated on the total amount payed by the sender? In this case each receiver would pay a proportional portion of the total fee. Or is it charged a fee to each amount in which the transaction is split? We will work with Spanish fees (3.4% + 0.35 euros) and in this last case Paypal charges would be significantly higher because of the fixed 0.35 euros that would be charged to each transaction. We are mainly worried about the case this also applies to the commission for the marketplace because we would be loosing money in some transactions when our commission would be lower than 0.35 euros.

This is the only info I've found and I still didn't understand it.

In the text they do not specify that issue (unless I am misunderstanding anything due to I am Spanish-speaking), so I had tried to deduce it with the examples at the end of the text although they pointed that "The scenario above is an example only and is not representative of actual PayPal fees".

But it resulted that the scenarios were completely unreal as they charged a higher fee to a secondary receiver that was receiving an amount of $130 than other receiving $150. So it was impossible for me to get any conclusion.

Answer 1

If the receivers pay the fee, you can specify whether the primary receiver in a payment with several receivers pays the entire fee or all receivers pay a portion of the fee.

•Sender pays the fee – the sender can pay a fee for a simple payment, parallel payment or chained payment.

•Receiver Pays the Fee in a Parallel Payment – the sender can send a payment that is split directly among 2 to 6 receivers. Each receiver pays a portion of the fee based on the amount of the payment each receiver gets.

•Each Receiver Pays the Fee in a Chained Payment – the sender can send a payment that is indirectly split among one or more receivers. The primary receiver, identified as the merchant, pays a fee and each of the other receivers also pay a fee based on the payment amount each receives.

•Primary Receiver Pays the Fee in a Chained Payment - the sender can send a payment that is indirectly split among one or more receivers. If the primary receiver pays the fee in a chained payment, other receivers pay no fees. The fees paid by the primary receiver are based on the total fees assigned to all receivers.

•Secondary Receivers Pay the Fee in a Chained Payment - the sender can send a payment that is indirectly split among one or more receivers. The primary receiver doesn’t have to pay the fees with the secondary receivers paying all the fees. Fees are determined by PayPal and are based on criteria, such as the transaction volume of the receiver.

So each of your receivers would be charged the (3.4% + 0.35 euros) if you split the payment between the receivers.