Onboard sellers after payment

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Last updated: Sept 24th, 3:49pm

You can connect your sellers to PayPal after they accept PayPal payments from buyers on your platform.

Know before you code

  • You must be an approved partner to use this integration.
  • You must have an access token.
  • Onboarding after payment only supports onboarding sellers with PayPal business accounts.
  • Onboarding after payment does not support sellers accepting alternative payment methods.
  • You must notify your existing sellers 30 days prior to activating PayPal that you are enabling PayPal as a payment option and enable them to opt out. For sellers who opt out, you must enable them to cancel pending PayPal transactions.
  • It is crucial that you inform your sellers of PayPal's Seller Protection policy , so they are aware of use cases that invalidate that protection, such as shipping to an address other than the one in the transaction confirmation.

Step 1: Review the onboarding checklist with your account manager

Before doing this integration, work with your account manager to determine what types of PayPal accounts you will allow for your sellers, the types of payment options you will make available to them, and more. Use the onboarding checklist to learn more.

Step 2: Make a payment

Follow the steps on the Set up payments page to make a payment from a buyer to a seller. In the step to create an order, pass the email address of the seller that you want to onboard as the value for the email_address field in the payee object:

Sample request

    1curl -v -X POST https://api-m.sandbox.paypal.com/v2/checkout/orders \
    2 -H 'Content-Type: application/json' \
    3 -H 'Authorization: Bearer <Access-Token>' \
    4 -H 'PayPal-Partner-Attribution-Id: <BN-Code>' \
    5 -d '{
    6 "intent": "CAPTURE",
    7 "purchase_units": [{
    8 "amount": {
    9 "currency_code": "USD",
    10 "value": "100.00"
    11 },
    12 "payee": {
    13 "email_address": "seller@example.com"
    14 },
    15 "payment_instruction": {
    16 "disbursement_mode": "INSTANT",
    17 "platform_fees": [{
    18 "amount": {
    19 "currency_code": "USD",
    20 "value": "25.00"
    21 }
    22 }]
    23 }
    24 }]
    25}'

    Step 3: Seller signs up on PayPal

    After a seller receives payment, they are notified by email to either sign up for a PayPal account or log in to an existing one. They are then asked to grant you permissions to act on their account on their behalf. If the seller wants to use a different email address, they still need to sign up using the email address they were notified with. They can later create a new account or use a different email for future payments.

    Step 4: Track seller onboarding status

    Seller onboarding is complete when the following requirements are met:

    • Seller creates a PayPal account.
    • Seller grants you permission to perform payment.
    • Seller confirms the email address of the account.

    Upon being notified of payment, the seller will have 30 days to complete onboarding. If the seller does not complete onboarding within 30 days, the payment will be reversed to the buyer. If a seller does not complete onboarding, you can cancel pending payments any time with cancel_merchant_onboarding.

    To receive a notification for when your seller completes onboarding, you can subscribe to the MERCHANT.ONBOARDING.COMPLETED webhook. This webhook is triggered when the seller has fulfilled all three onboarding requirements.

    Next steps

    Set up payments

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