I am setting up an online store where listing an item is free.
The buyer can pay only through paypal.
When buyer purchases an item for $100 then I want to charge the seller 5% fee. I have seller's paypal email address.
Is it possible for me to charge seller $5 through paypal?
So far I have seen that the account holder has to take an action to pay to someone. In this case the account holder is seller and I am trying to charge to seller's account without seller taking any action at that time.
PayPal has Adaptive Payments, which allows you to create 'chained payments; and specify 'primary' and 'secondary' receivers (up to 10 recievers per 1 transaction I believe).
You could then use Adaptive Chained Payments to set the seller as the primary receiver, set yourself as the secondary receiver and optionally move the transaction fees onto the primary receiver as well.
Have a look at https://www.x.com/developers/paypal/products/adaptive-payments for more information.
If you don't want to use the whole Adaptive Payments API just to split payments, you can also look into Express Checkout with Parallel Payments as described here. The downside is that the buyer will see he's sending funds to two separate sellers. The upside is that you can stick with the Express Checkout API's and don't need to submit an application for review to PayPal.
