solved Foxycart Payment Question

A member of my site has set up a few products (mp3's) and a bundle (album) on my site. He had not entered his paypal email for payment. I have now added this for him BUT when I try to make a test purchase I get the following message from paypal:- "You are logging into the account of the seller for this purchase. Please change your login information and try again."

So....my question is this. Are Foxycart payments made direct to the individual members paypal account? The one listed on their profile page? OR are all payments made to my account ( site admin ) and then disbursed by me to the members paypal accounts?


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Ceri Shaw - AmeriCymru
updated by @adolygwr: 07/28/16 08:33:26AM

The latter - All payments go to your account then there is a tool in FoxtCart to distribute income to your venders (less any commission you may have set).
hth


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Paul Asher - JR Developer and System Import Specialist

Ok thanks....that being the case I have two further questions:-

1. If we are receiving the payments are we not also responsible for taxes?

2. If I am disbursing payments ( minus commission) could I not dispense with the subscriptions model and charge (e.g.) $5 bucks a month if sales exceed (e.g.) $20 in a month. That way I think more people will open stores because a) there are no recurring payments (subscriptions) and b) Members only pay me if they achieve a certain level of sales. I would simply deduct the appropriate amount from their monthly payout. Just wanted to confirm that this is technically possible?


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Ceri Shaw - AmeriCymru
updated by @adolygwr: 04/16/16 12:39:01PM

1) Not sure how it works in the US, but in the UK you might only be liable to pay tax on any profit made, ie., the commission.

2) FoxyCart does not work that way automatically. What I'd suggest is setting up several 'vendor' quotas with different levels of commission. You could then move the vendor profiles individually to the appropriate quota every month (say) prior to payout. Agreed, this might be a bit tedious if you have lots of vendors, and if that did prove to be the case, I think a relatively simple custom module could automate the process.
hth


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Paul Asher - JR Developer and System Import Specialist

I operate an accommodation booking site. The Customer pays for a room via the Accommodation Provider's Free Listing on the site (they have already entered their PayPal email as part of their free listing).
The payment is processed via PayPal. The accommodation software uses a split transaction process. eg: I receive the full payment for the room to my PayPal Merchant Account, it is then automatically split with 90% sent to the Accommodation Provider's PayPal Account via PayPal's Mass Payment system, and I retain the 10% commission in my PayPal Account.

It would be great if something like this could be developed for Jamroom.
Eg: the Customer buys mp3s from the Artist, the money comes to my PayPal Account, it is then automatically split, with mass payment going to the Artist Paypal Account, and I retain eg: 10% commission.

This way the artist only pays the Commission if they make a sale. In the Accommodation site mentioned above, the Accommodation Provider only pays 10% commission on actual room reservations.

As far as the Tax is concerned (in Australia) I have to calculate the Total Earnings, minus the Payout to Accommodation Providers. So only pay Tax on Profit eg: the 10% earnings. PayPal fees are also a Tax deduction.

This is actually how it works in Jamroom. All payments come in to YOUR PayPal account (for example), and then on your schedule you "payout" your profiles based on the percentage you have set in the Quota Config for the FoxyCart module. When you do the payout you be prompted to download a PayPal MassPay CSV file that you can upload to PayPal. Once you have sent the Mas Pay payment, you just "complete" the process and all balances are adjusted according to what was paid out.

That's how we run things here on Jamroom.net and it works great.

Hope this helps!


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Brian Johnson
Founder and Lead Developer - Jamroom
https://www.jamroom.net