How to automatically collect commission from money transfer transactions using paypal API?

Question

I have a website where i allow users to transfer money between their (sender) paypal account X to primary receiver paypal account Y and i get a commission out of these transactions and i want them into paypal account Z. I want to be able to collect the commission automatically once the money is received on paypal account Y (primary receiver). just to be clear: Money from sender account X go to primary receiver paypal account Y and from there paypal automatically transfer me the commission to me (website owner) paypal account Z. Is there a way that paypal can allow me to do it automatically? can i use Chained Payments for this scenario? is it legal?

Thanks, Ronen.

Answer 1

It is legal and that is exactly what chained payments are for. One payer, two recipients.

Answer 2

I think what you are looking for is Adaptive Payments using PayPal. Adaptive Payments provides several kinds of payment: simple, parallel, and chained payments.

• Simple payments enable a sender to send a single payment to a single receiver.
• Parallel payments enable a sender to send a single payment to multiple receivers.
• Chained payments enable a sender to send a single payment to a primary receiver. The primary receiver keeps part of the payment and pays secondary receivers the remainder.

source: Paypal Adaptive Payments