Has your company used PayPal services to effectively increase its productivity in receiving and transferring money? If you are already familiar with PayPal, consider using their lesser-known functions: MassPay and Reference Transactions.
In this article, Global Link Asia Consulting will give an overview of PayPal’s Mass Pay and Reference Transactions for you to create effective strategies to promote sales.
The emergence of Fintech startups have helped to spur the growth of international online payment. What should businesses do to catch up with the development trend of online payment worldwide?
1. PayPal Mass Payment (or MassPay) function
1.1 The function of PayPal MassPay (Mass Payment)
MassPay API (Mass Payment) is a PayPal option that allows a merchant (PayPal account holder) to pay money to many recipients immediately and simultaneously. Merchants can use Mass Pay to transmit payments to up to 5000 people at once. Merchants’ suppliers, marketing agencies, and other partners could be among the recipients.
1.2 Reasons why we should use PayPal Mass Pay (mass payment
PayPal Mass Pay allows account holders to:
- Make payments in bulk and offer recipients immediate access to their funds. Recipients do not have to wait for the funds to be available, unlike other payment methods.
- Reduce accounting paperwork.
- Easily revise exceptions.
- Save money by avoiding PayPal transfer fees. The sender of a transaction using Mass PayPal pays a small transfer fee, but the recipients do not.
1.3 Registration Requirements for PayPal Mass Payment
Notes: Only “VIP” PayPal Business accounts with large monthly Volumes can register for this service. See more on how to complete PayPal Underwriting to hold a VIP PayPal Business account, or contact Global Link Asia Consulting for further information
2. Reference Transaction
2.1. A Reference Transaction
A Reference Transaction is a PayPal function that allows merchants to associate secondary transactions with main transactions. This function is extremely useful for merchants looking to upsell their goods.
A transaction ID is issued when a buyer makes a purchase on a PayPal-integrated site. This ID can be used by merchants to initiate a new transaction for the same customer. This is called a Reference Transaction.
A buyer, for example, chooses product A from your website and decides to purchase it. The buyer then fills out all of their personal information and pays for their order using PayPal. The Store can advertise or promote another product when a customer checks out their cart. If the customer agrees to buy it, they simply need to click the payment button to complete the transaction. There’s no need to fill out any other information, even their PayPal account information!
2.2 Benefits of using Reference Transactions
Merchants can use the Reference Transaction functionality to upsell by introducing more products and incorporating online payment into their website.
- When a buyer has finished their order payment, the reference transaction will display the store’s related product recommendations. For example, when a customer has paid for makeup remover, they will be advised to purchase cotton pads without having to re-enter their account information. As a result, reference transactions are a powerful upsell strategy.
- Buyers do not need to enter account information again to complete payments. This will encourage them to come back or continue to buy other products on the website to save time and experience the convenience of the checkout process.
2.3 Registration Requirements for Reference Transaction
Only “VIP” PayPal Business accounts with substantial monthly Volumes can register for this option, similar to Mass Pay. To improve the checkout process and help raise conversion rates, merchants can apply to conduct Underwriting, register for Reference Transactions, and register for PayPal Pro. For more information, please contact Global Link Asia Consulting.
3. FAQs related to the MassPay API
3.1 How can I make payments with the PayPal Mass Pay API?
Merchants can use one of the following methods to send payments in batches:
- Method 1: Uploading CSV file
- Merchants can submit files with up to 5,000 records, including recipient email addresses, payment amounts, and currency IDs.
- For each recipient, merchants can add one column for transaction IDs and another for optional alerts.
- Method 2: Using PayPal Mass Pay API.
- Each request allows merchants to transmit up to 250 payments.
- The Mass Pay API will respond to the NotifyURL specified in your account with an Instant Payment Notification (IPN).
- The history of the business’s PayPal account contains detailed transaction details.
3.2 Are any fees for sending payments via PayPal’s Mass Pay?
Depending on the currency, PayPal charges senders a percentage of each payment. No matter what type of PayPal account the recipient has, they are not required to pay the fees.
Visit this Merchant Fee page to understand how fees are computed for a specific Mass Pay transaction.
3.3 Which countries can receive payments via Mass Pay?
Mass Pay is available in over 150 countries and over 20 currencies. Please note that the currency limitations do not allow to exchange into Peso Argentina (ARS), Real Brazil (BRL), or Ringgit Malaysia (MYR).
If senders or recipients need to change the payment currency, PayPal’s currency exchange rate applies
3.4 Can I send payments in different currencies?
Yes, but Merchants have to make different payment IDs for each currency.
If your company wants to transfer payments to several nations in the same currency, your recipients can opt to exchange it into their preferred currency.
3.5 A recipient tells me that they have not received the payment yet. What are the potential reasons?
Below are some common explanations:
- Incorrect email address: Check the email address of the receiver. If it is wrong, the Merchant may cancel and reissue an unclaimed payment.
- The recipient’s email address is not confirmed: With an unconfirmed email address, your recipient will not be able to receive funds. Please require that your receiver validate their PayPal email address. Payment will be sent to the recipient’s PayPal account in a few minutes after you complete the confirmation.
- The recipient has not received the payment email: PayPal emails are occasionally redirected to the spam folder of the recipient. If this is the case, the recipient must review the payment by logging into their PayPal account.
4. Registration for Mass Pay and Reference Transactions
VIP PayPal Business accounts can use Mass Pay and Reference Transactions to increase their profits. To upgrade to a VIP PayPal Business account, your business account must be accepted for a PayPal Business account. This service is only available to countries that have complete PayPal services, such as the United States, Singapore, and Hong Kong. More information about forming new corporations in other countries can be found here.
Many firms in high-risk industries, such as dropshipping or software, find it difficult to maintain long-term PayPal accounts. Doing underwrting incorrectly can have a negative impact on the account. However, with the assistance of Global Link Asia Consulting’s expertise, these issues can be simply resolved.