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Connect PayPal for Payouts

Nautical supports a PayPal plugin to pay out funds to the sellers on your platform. Once PayPal is connected, sellers can connect their payout account within their vendor settings.

Set up PayPal account​

Before you can activate the PayPal plugin in Nautical, you need a PayPal business account with payouts enabled.

Before you start

To test PayPal in your staging environment before activating a live account in your production environment, you can connect Nautical to your PayPal sandbox account.

Step 1: Enable payouts​

PayPal requires an application and vetting process to allow live account payouts. However, you can test PayPal payouts in a sandbox environment without verification.

  1. Log into your PayPal Developer Dashboard.
  2. Hover over your account name in the top-right corner and select My Account from the menu.
  3. Under Permissions, if not already enabled, select the link to enable the Payouts permission.
Payout Enablement

The PayPal application process for live payouts varies by country. In the US, PayPal will send an email confirmation that your request is under review after requesting this feature. Outside the US, you may need to contact to customer service to enable the live feature.

PayPal account permissions

Step 2: Create app in PayPal​

You'll to create a partner app for Nautical and get the client ID and secret key.

  1. Log into your PayPal Developer Dashboard.
  2. Go to the Apps & Credentials tab.
  3. Select Create App.
  4. In the Create App window, select Platform as the Type.
  5. Select Create App. Once the app is created you will be redirected to the app details page.

On the newly created Platform Partner App, the Client ID and Secret key will be shown, which you will use to activate the PayPal plugin in Nautical.

PayPal app API credentials

Activate the PayPal plugin in Nautical​

  1. Log into your Nautical dashboard as a marketplace operator.
  2. Go to Settings -> Apps -> PayPal and set the following fields:
    • API Url: Choose the appropriate API URL for the PayPal account mode:
      • For Live mode, select https://api-m.paypal.com/
      • For Sandbox mode, select https://api-m.sandbox.paypal.com/
    • Client ID: Enter the Client ID copied from your PayPal app.
    • Payout email message: Optionally, edit the payout email message that will be sent to your sellers upon processing a payout.
    • Payout email subject: Optionally, edit the payout email subject that will be sent to your sellers upon processing a payout.
  3. Select Save.
  4. Under Authorization, select Edit beside Client secret.
  5. In the Edit Authorization Field window, enter the Secret key copied from your PayPal app, and then select Confirm.
  6. Select Activate.

Using PayPal payouts​

Once the PayPal plugin is active, your sellers will have the option to enable PayPal as their payout account. You can choose PayPal as the gateway when processing payouts. However, keep the following in mind:

  • Your PayPal account must have sufficient balance to process the payout.
  • You are responsible for paying the payout fees charged by PayPal, which is a percentage of each payment.

See the PayPal Payouts FAQ page for more information.

Onboard sellers for PayPal payouts​

To start routing PayPal payouts to that seller, you simply need the seller's email address and have them activate their payout account.

  1. Log into the Nautical dashboard.
  2. Go to the Seller Details page for the seller you want to onboard. Marketplace operators can go to Vendors -> Sellers, to open the appropriate seller.
  3. On the Overview tab, confirm the seller Email address is set correctly. This is set from the user assigned as the Primary Contact.
  4. Open the Settings tab.
  5. Under Payout Account, select Connect payout gateway for PayPal.

Result​

The PayPal connection is registered with the seller's email address. No further onboarding is required until the seller receives their first payout email. You may need to refresh the page to see the status change to Enabled.

Process payouts with PayPal​

Once orders are eligible for payout, you can start processing payouts to your sellers with PayPal. When processing payouts, set the Payment Gateway to PayPal to route funds using PayPal.

After completing a payout, PayPal notifies each recipient with an email:

  • Recipients with a PayPal account receive an email prompting them to log in for payment details.
  • Recipients without a PayPal account receive an email prompting them to create a PayPal account to receive their funds.
note

When testing in sandbox mode, note that transaction emails are not sent. Emails are only delivered in live mode.

The marketplace operator is also sent an email confirming the amount sent in the payout:

You can check your Transaction activities page to view your complete payout history. See the PayPal payouts page for more information on how payouts work.

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