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Refund- Paypal Marketplace

Refunds of an order paid via WCFM Direct Paypal plugin can be raised by customer from their my account section, or the vendors can process the same from their dashboard, please note that Admin can only approve/reject refund requests raised by customers ( if auto-approve settings in refund is turned OFF) but not process the refunds, it can only be done by the vendors.

Here’s how the refund process can be initiated by customers-

* They can go to ” My account” section -> Orders tab-> Click on refund option as shown here:

Once the refund button is clicked the user will be prompted to answer if they want full or partial return and give a reason for choosing refund as shown here :

Once the request is placed, if the auto-approve option is enabled in WCFM admin dashboard refund settings, then the amount is refunded from vendor’s account. ( Note: For auto-approve settings- please check the refund documentation here)

If admin has not enabled ” auto-approve option in refund settings, then admin will have to approve or reject the refund request from WCFM Admin Dashboard -> Refunds as shown below :

Once admin approve the request, the refund request will be processed automatically from the vendor. Else if auto-approve is enabled, then the refund request is directly processed without needing any confirmation from the admin.

Note: Incase vendor does not have PayPal balance at the time of refund request, then it will be reflected in WCFM Dashboard as refunded, but in the WooCommerce -> Status -> log, you can see a error generated that the refund is not completed. In this case the amount has to be settled with the vendor manually outside the site.

Vendors can also process the refund directly from their dashboard from ” order list: They will need to go to WCFM Vendor dashboard -> Orders -> Select the order and click on refund button as shown here. 

Clicking on refund button, the vendor will be prompted to enter if it is full/partial return and fill-in the required reason for the same as shown below:

Once done, the refund will be processed and shown in the order list as below:

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Vendor configuration for PayPal Marketplace

Vendors can connect the site to their PayPal account from their WCFM vendor dashboard. Just login to WCFM Vendor Dashboard -> Settings -> Payment,  then choose WCFM PayPal Marketplace option and provide the Paypal Email as shown below:

Once you sign up, you will be redirected to PayPal connection process, here are the steps shown:

Next, the vendors will need to login to your PayPal business account account.

Once you login, you will need to ” Agree and connect” the terms and conditions as shown here:

Once you agree you will be shown a Thank you message and then you can click to return to the store, now your vendor can see their account in their dashboard as shown below:

This will complete your vendor’s configuration and setup for WCFM PayPal Marketplace.




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Admin configuration for PayPal Marketplace.

You can either use your live PayPal Business account or create a new business account. Here we will discuss how to link your sandbox PayPal account to your marketplace site to test your purchase.

Step 1: Login to and goto Dashboard option as shown below:

Step 2: Next, you need to create a Rest API app to get these credentials. Click on Create App as shown below:

Note: For live mode click the Live button and for testing purposes click the Sandbox button. Both setup processes are the same.

Step 3: Configure the app by providing the app name, choose app type as “platform” and then click on ” Create app” button. Here’s a visual of the app creation process shown below for reference –

On the next page you will find your client id and secret id and BN code which you will need to link your paypal marketplace account to your marketplace. Here’s screenshot of the next page showing the required codes:

Step 4 – Configuration in WordPress Admin panel : Now, once you get the required codes/ID namely :

1. Client ID
2. Secret Key and
3. BN code.

Then go to your site’s WordPress admin panel and install WCFM PayPal marketplace plugin,  you will need to activate the Paypal Marketplace option available in WooCommerce -> Payments settings and then click on Manage option as shown here:

Clicking on ” Manage” will redirect you to settings/configuration page where you will need to put the required details:

Here, you will need to put in the Client ID, the secret key and the attribution ID will be the BN code as retrieved from here:

To get the merchant ID, login to your account and derive it from there as shown below-

Just enter into your merchant paypal account, goto ” Account settings-> Business information

From there, you will get the merchant id as shown here :

After this you will also need the activate PayPal split payment for vendors as Payment method, for that Goto WCFM Admin dashboard-> Payment-> Enable WCFM Paypal Marketplace option as shown here:

Once the entire admin configuration is done, your customers will be able to see the PayPal payment option in the checkout page as shown here:


And your vendors will be getting WCFM Paypal Marketplace option in their payment settings which we will be shown in the next vendor configuration section. 

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Introduction-Paypal Marketplace

Some countries do not allow marketplace owners to hold the payments, thus the amount paid by the customer has to be directly sent to the vendors to their account. With WCFM Direct Paypal plugin the amount that the customer pays will split immediately and be distributed between admin and vendors based on the commission percentage configured in your site.

In this article we will read about the setup and configuration of Paypal Marketplace plugin and show configuration in Paypal sandbox account required for initial testing purpose in your marketplace site.

NOTE: PayPal Marketplace API for split payment will only work for following countries as of now – 

  • Australia
  • Canada
  • France
  • Italy
  • Spain
  • United Kingdom
  • United States

For other countries, the split payment is not supported by PayPal and they will need to use older version of plugin. Get older version of the addon from here.