[FrE] Setup PayPal Adaptive in Escrow system (obsolete)

Note: Recently, Paypal Adaptive (Escrow) is not available for new applications. 

PayPal Adaptive is a trusted third party  to handle payments of the Escrow system to help the user make any transactions on your site. You can find the Escrow system’s setting page in your admin panel. Choose Engine settings > Escrow to set up PayPal Adaptive.


  • Using Escrow: You can enable or disable the system in this section.
  • Commission: This commission is the fee users have to pay for using your service. Simply insert the amount of commission you want to charge them.

Besides, to set up the currency, choose Engine settings > Settings > Content and you can set up the suitable one.

  • Commission type: You can select the type of commission you want to use in this section. There are two types for you to choose: by percentage or by a specific amount.
  • Payer of commission: The employer is often the one to pay the commission. However, you can select the freelancer to be the payer.


  • Payment Test Mode: You can either enable or disable test payment without charging your account.
  • Manual transfer: If you enable this option, you can manually transfer the money when the project’s done.

In this tab, you have to fill in all the required information to use PayPal Adaptive Payment. This is a trusted third party to handle payments of the Escrow system.

  • Your business PayPal email: You can enter your PayPal email in this field. Remembering that, it must be the PayPal Business or Premier account.
  • PayPal fees: You can decide which party will pay the PayPal fees:
  1. Primary receiver pays all fees: admins will be the person who pays for the fees.
  2. Each receiver pays their own fee: admin and freelancer will pay the fee.
  3. Secondary receivers pay all fees: freelancer will be the person who pays for the fees.

Note: To enable PayPal Adaptive, you have to disable both Stripe connection and Credit.

  • Besides, you must complete all blank spaces in the PayPal API section such as your PayPal API username, your PayPal API password, your PayPal API signature, and your PayPal API AppID.

PayPal API Settings

Step 1: Check your PayPal account status

To setup PayPal Adaptive Payments, the application owner must have a PayPal Business or Premier account. Here’re the details to check your PayPal status:

  • Login to PayPal at www.paypal.com .
  • Click the Profile subtab under My Account.
  • In the left menu, click the My settings to confirm that your account type is either Business or Premier. If not, you have to upgrade your account.

Step 2: Settings your PayPal Adaptive

  • In the left menu, click the My selling tools.
  • Under the Selling online section, click the Update link next to API access to verify your API access.

  • To generate the certificate set, click the Request API Credentials.
  • Select the API Signature option, then click the Agree and Submit button.
  • In the next page, you just need copy your API data:


Step 3: Request a Paypal Adaptive Live AppID

1. Create a new application by accessing your PayPal applications account at https://www.paypal-apps.com/user/my-account/applications

For further technical information about Adaptive Payment API, kindly visit the PayPal Developer docs page.

2. Click the New Application and fill the Application options based on the way you want to use adaptive payments.

App Application

  • Title: Enter your unique application name.
  • On  what platform does your app run: Usually select Web.
  • Description: Add information to describe what your application does and type the following APIs use information in the 2nd paragraph:
 This application uses the Chained Payment APIs as a part of Payments system. It allows the primary receiver to keep part of the payment during the project is in progress. When the project is completed, money held in Escrow is manually transferred to the second receiver(s). In case of dispute, the  primary receiver will decide to refund money to the initial sender or transfer it to the second receiver(s). If a project runs for longer than 90 days and the funds were not released, this payment will be returned to the initial sender (the employer).

Industry and Use Cases:

  • Select items as appropriate from Related Industry list (usually select None of the Below)
  • Under the Use Case list, select the closest one match to your application purpose (In FreelanceEngine, Marketplace is usually selected).
  • Besides, you can upload a file in the Additional Info section if you want, but it’s not required.

Services used by app

Adaptive Payment: Select Chained Payment and choose Delayed radio button.

*Note: According to PayPal, chained payments also include delayed chained payments, in which payments to secondary receivers can be delayed for up to 90 days. If a project runs for longer than 90 days and the funds were not released, this payment will be returned to the initial sender (the employer). It means you should set the maximum limit for a project to be completed as 90 days.
  • Who pays the fee?: Leave empty or choose Primary Receiver (you) or Each Receiver (you and freelancer)
  • Who is the primary receiver?: In FreelanceEngine, primary receiver is the admin, so you need to add your application name in this field.
  • Who is (are) the secondary receiver(s)?: Add “freelancer”.
  • Expected monthly payment volume and average transaction amount in US: Enter you expected values.
  • Who is responsible for chargebacks or refunds?: Add “me”.
  • Do you have an Acceptable Use Policy?: If you have the user policy in your website such as Terms & Policies, select Yes & enter this URL; otherwise, you select No.

*Note: You should enter a valid URL to your Acceptable Use Policy. Otherwise, your PayPal application may be denied.

Adaptive Account: Can leave empty.

3rd Party Permissions: Can leave empty.


Step-by-step Payment Flows Instructions: this section refers to your payment flows on your site. You can copy & paste the below flow for your site:

Employer accepts a bid. Employer transfers money including budget & commission fee. This money is held by the admin. Freelancer starts working. The project is completed. Money is manually transferred to freelancer. Dispute occurs, admin decides to refund money to employer or send it to freelancer.
  • Test URL (if applicable): This fields is optional. You can leave empty or add your test site URL.
  • Supply Test Account Name and Password: Create a user test account (PayPal Sandbox test account) and input its username & password in this field.
  • Besides, you can upload a file under Testing Information section, but it’s not required.

Business Information: All information in this section are optional, so you can leave empty.

3. Click the Submit App to complete.

PayPal will review your application, when it is accepted you will have access to your Live App ID.

*Note: You should NOT enable the Payment Review feature in your PayPal Account (Accounts > Profile  > Settings > Payment Review > Off).

Click on the Profile link to set up

Disable the Payment Review feature in the Account Details dialog box