Chained payment method is another popular payment method for PayPal. In chained payment method when a customer makes the payment he/she sees only one receiver and then in the backend process the receiver divides the payment and dispatches the payment to the vendors. Chained payment method further gets divided into two sections
Instant Chained Payment
In the instant chained payment method, the payment is divided instantly by the admin as soon as he/she receives the payment from the customer.
In the above-chained payment diagram, you can see that the payment is directly sent to the primary receivers and as the primary receiver gets the payment, it further splits instantly and goes to the vendors automatically.
Delayed Chained Payment
Delayed chained payment is an advanced working flow of the instant chained payment. Suppose there is a merchant who wants to sustain the payment which he/she receives, to himself/herself and dispatch the payment only when the product is delivered to the customer. Then, in this case, the Delayed payment method works. In effect the Delayed payment method allows the merchant to hold and sustain the amount of the Payment released when he wants to.
When the customer makes the payment to the merchant, the merchant sees an extra tab, available in the order area which allows him/her to release the payment to the vendor.
When payment is made using the Delayed Chained Payment Method then an extra tab named “PayPal Adaptive” will be shown in the order area. When the merchant clicks on the “Release Payment” button then the payment is released to the vendors.