Online payment becomes alternative to traditional payment system. Here is few details about service of PayPal Adaptive payments of PayPal one of the largest payment service provider companies.

PayPal adaptive payments handle payments between the single sender of payment and one or more receivers of payment. It enables the user to do payment to one or more receivers in a single transaction. Three types of payments are there in it simple payment, chained payment and parallel payment.

Simple Payment
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Simple payment is a part of the adaptive payment in which there is only one receiver. It is same as PayPal standard. As above image when payer pays the amount to the receiver directly using an PayPal adaptive gateway.

 

Parallel Payment
Parallel payments is a part of adaptive payment gateway.
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In this type of payments there are on or more receivers and one primary receiver. When payer pay the amount, Primary receiver will get whole payment and then paid payment to the secondary receiver.
Parallel payments is useful in case buyer want to make payment for multiple items from multiple merchants. A user can pay to maximum 6 receivers in parallel payments.

 

Chained Payments
It’s one of the part of adaptive payments. It is used to make payment indirectly to multiple receivers.Sender directly deals with the primary receiver. The primary receiver acts as an agent and can hold payment of secondary receiver. You should have one primary receiver and 1-9 secondary receivers.

 

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Sometimes, You as an owner of a website want to hold payment of your seller until you not. In this case, buyer user will directly make payment to you. Amount of secondary receiver will hold and you can make that payment to secondary receivers later here PayPal fees of secondary payment will not deduct by PayPal as it is adaptive.

In Example, primary receiver get $1000 from the buyer but actually he/she gets $200 only and pass amount of secondary receivers.