Set-up Paypal payouts
The article gives you important information on how to get started making payouts to your vendors via Paypal on PuppetVendors.
To use this feature, you must meet all of Paypal's requirements listed below.
Have a PayPal business account. If not, Click here to signup
Once your PayPal business account is set-up, make sure that you have confirmed your identity, email and have your bank account linked to your PayPal business account
Permissions from PayPal to use their payouts feature (scroll to the last section for instructions to this)
If you based out of the United States (US), you are charged a fee of USD $0.25 for each payout. These are fees charged by PayPal and not PuppetVendors.
PayPal fees for other countries can be found here
After meeting PayPal's criteria above, you will need to connect PayPal to PuppetVendors. Steps on how to do this is listed below.
Create a new developer account or log in to your existing account by clicking on here -> Log in or Sign up
Once created and logged in, you should see a screen like below
(1) Make sure your account status is set to Live mode
(2) Click on Apps & Credentials
(3) Click on Create App
Upon clicking on Create App, you will see the following screen
( 1 ) Enter PuppetVendors Payouts as the App Name
( 2 ) Click on Create App
After clicking the "Create App" button, you will be presented with the Client ID and Secret screen. These are what you need to use to connect PayPal with PuppetVendors.
Make sure you are logged into PuppetVendors and then click on this link or go to Settings -> Payouts
Copy and paste the Client ID and Secret key from PayPal to their respective fields in PuppetVendors as shown in the image below
Click on the "Test Connection" button. If success, you are ready to go, else please contact support@puppetvendors.com for assistance.
Steps below must be completed to activate PayPal payouts
You will need to request PayPal to use their payouts feature as it's not enabled by default. Follow the steps below to enable PayPal payouts.
Visit My Account in the same dashboard where created the app
Scroll down on the right column and click on Enable...
Click on the Contact Us button that shows. Request the PayPal staff to enable this feature for your account. If you do not see a contact us button, you may alternatively contact PayPal support here: https://developer.paypal.com/support/
PayPal Payout Fees: PayPal Payouts will typically charge a 2% fee for each international banks and a 25 cents fee for US banks. These are PayPal fees, and Puppet Vendors does not control of this nor do we take any cut from this. The fees cannot exceed the total value of $14 USD for domestic transactions and $90 USD for international transactions. This may vary depending on your currency. Learn more about PayPal Payouts Fees Here. Note to use the Payouts API rate.
Paypal Authorization error occurred
How to resolve?
This is the most common error we see with merchants using Paypal as a payout method and happens when PayPal has not approved their PayPal account to use the Payouts API.
Follow steps 9 and 10 above to resolve this. When you contact PayPal to enable the Payouts capability, it may take up to 24 hours before it gets activated.
Insufficient funds
How to resolve?
Simply log into your PayPal account (paypal.com) and top-up your account. Guide to top-up your PayPal account here.
There will be instances where PayPal deny's the feature activation for your account with a message that looks like the following
When this happens, there is typically no re-course and we recommend you switch to Stripe Payouts or manual bank transfers.
PayPal Requirements
To use this feature, you must meet all of Paypal's requirements listed below.
Have a PayPal business account. If not, Click here to signup
Once your PayPal business account is set-up, make sure that you have confirmed your identity, email and have your bank account linked to your PayPal business account
Permissions from PayPal to use their payouts feature (scroll to the last section for instructions to this)
If you based out of the United States (US), you are charged a fee of USD $0.25 for each payout. These are fees charged by PayPal and not PuppetVendors.
PayPal fees for other countries can be found here
Connecting PayPal to PuppetVendors
After meeting PayPal's criteria above, you will need to connect PayPal to PuppetVendors. Steps on how to do this is listed below.
Create a new developer account or log in to your existing account by clicking on here -> Log in or Sign up
Once created and logged in, you should see a screen like below
(1) Make sure your account status is set to Live mode
(2) Click on Apps & Credentials
(3) Click on Create App
Upon clicking on Create App, you will see the following screen
( 1 ) Enter PuppetVendors Payouts as the App Name
( 2 ) Click on Create App
After clicking the "Create App" button, you will be presented with the Client ID and Secret screen. These are what you need to use to connect PayPal with PuppetVendors.
Make sure you are logged into PuppetVendors and then click on this link or go to Settings -> Payouts
Copy and paste the Client ID and Secret key from PayPal to their respective fields in PuppetVendors as shown in the image below
Click on the "Test Connection" button. If success, you are ready to go, else please contact support@puppetvendors.com for assistance.
Steps below must be completed to activate PayPal payouts
Request PayPal to use the feature
You will need to request PayPal to use their payouts feature as it's not enabled by default. Follow the steps below to enable PayPal payouts.
Visit My Account in the same dashboard where created the app
Scroll down on the right column and click on Enable...
Click on the Contact Us button that shows. Request the PayPal staff to enable this feature for your account. If you do not see a contact us button, you may alternatively contact PayPal support here: https://developer.paypal.com/support/
PayPal Payout Fees: PayPal Payouts will typically charge a 2% fee for each international banks and a 25 cents fee for US banks. These are PayPal fees, and Puppet Vendors does not control of this nor do we take any cut from this. The fees cannot exceed the total value of $14 USD for domestic transactions and $90 USD for international transactions. This may vary depending on your currency. Learn more about PayPal Payouts Fees Here. Note to use the Payouts API rate.
Troubleshoot PayPal Errors
Paypal Authorization error occurred
How to resolve?
This is the most common error we see with merchants using Paypal as a payout method and happens when PayPal has not approved their PayPal account to use the Payouts API.
Follow steps 9 and 10 above to resolve this. When you contact PayPal to enable the Payouts capability, it may take up to 24 hours before it gets activated.
Insufficient funds
How to resolve?Simply log into your PayPal account (paypal.com) and top-up your account. Guide to top-up your PayPal account here.
There will be instances where PayPal deny's the feature activation for your account with a message that looks like the following
PayPal has denied your ability to enable the Payouts API feature. When reviewing applications and determining eligibility for advanced features such as these, various factors are taken into consideration prior to making a decision. In this case, PayPal was unable to approve your application for this feature.
We understand that this decision may be impacting to your business. Please know that, although you may be unable to utilize the Payouts API feature, you may still be eligible for other advanced business features, which we encourage you to apply for! These may include:
- Virtual Terminal
- PayPal Checkout
- QR Codes
- Invoices
...and more!
For more information on what features and services may be available to your PayPal business account, you may consider visiting the ‘App Center’ or ‘Business Tools’ page, which is located within your PayPal account.When this happens, there is typically no re-course and we recommend you switch to Stripe Payouts or manual bank transfers.
Updated on: 20/11/2024
Thank you!