To be able to receive payments from their listings, sellers need to connect their PayPal account and grant the marketplace certain permissions.
Why are PayPal permissions needed?
In order to accept payments, sellers need to give Sharetribe and your marketplace certain permissions in order to make the transaction process work. They are needed for two purposes:
- To be able to create a payment between the buyer and the seller on the seller's behalf.
- To be able to charge the marketplace's commission automatically from the seller's PayPal account. This is only needed if the marketplace administrator charges a commission.
Permissions are only needed from sellers, not buyers.
What are the required PayPal permissions?
There are six specific permissions.
This is the payment system that Sharetribe uses to process transactions. It allows buyers to buy without a PayPal account, only using a credit card.
In case of a situation where the buyer of the product or service needs a refund, this will be a possibility. Giving refunds is not at this moment directly possible from the marketplace, and the user needs to log in on their PayPal account to issue a refund. You can find out more about the refund process here.
Authorize and capture PayPal transactions
The transactions that take place on the marketplace are initiated by the user. However, there is an additional transaction for the commission fee that is not manually initiated by the user, but rather our system. This is the feature that allows marketplace owners to collect a fee from the sales on the marketplace. Additionally, the transactions are captured and stored in the admin panel, so that the administrators of the marketplace can keep an overview of the transactions that take place on the marketplace.
Obtain information about a single transaction
Sometimes, there can be a problem with single transactions. We unfortunately cannot solve all problems, but by getting some basic information about the transactions, we are able to do some troubleshooting of potential payment problems without having to involve PayPal support. Additionally, information about the various individual transactions is stored in the admin panel's transaction overview. You will be able to see when the status of the transaction is updated, so you will know which transactions completed successfully and which did not. Additionally, having this information is necessary for the marketplace platform so that it knows once a transaction has been completed successfully.
Charge an existing customer based on a prior transaction
Again, we allow marketplace administrators to charge a commission based on a transaction that has taken place on the marketplace. This is a second transaction that takes place after the first one is successful.
Access PayPal contact information
This is needed to let the marketplace know which PayPal account is being used for the marketplace.
Is it possible to bypass these permissions?
At this point, granting these permissions is the only way to be able to accept payments from Sharetribe transactions.
Do buyers need to grant PayPal permissions too?
No, these permissions only need to be granted by sellers.
Can sellers revoke these permissions?
Yes, a seller can revoke the permissions using PayPal account management at any time. If this is done, they will no longer be able to accept payments from Sharetribe transactions.