Depending upon the PayPal Payment Capture Action option set up in Oracle Commerce Cloud administration interface Payment Processing, PayPal payments involve one of the following:
Immediate authorization and settlement/capture of funds from the shopper’s PayPal account. In the Payment Capture Action options, this is called Order Placed. This may be used, for example, in instances where the merchant is selling digital downloads.
Note: If this option is used, an order cannot be amended.
Authorization only, awaiting shipment of the product. In the Payment Capture Action options, this is called Order Shipped. In this case, the funds are not captured from the shopper’s PayPal account until the order is fulfilled. The system does not immediately transfer funds to the merchant’s account but places a hold on the funds in the shopper’s PayPal account. This capture is completed outside of the Oracle Commerce Cloud environment. The shopper is able to amend his or her order if this option is selected and the merchant allows order amendment.
When working with amending orders involving the Order Shipped PayPal payment option, the following activities may result:
If there is an amendment to the order that results in no change to the order amount (for example, a straight substitution of one item for another), no action is necessary as Oracle Commerce Cloud uses the previous authorization received from PayPal.
If there is an amendment that results in a decrease in the order amount, no action is taken on the previous authorization. The extra amount in the authorization lapses and the reduced amount becomes the amount PayPal captures.
If there is an amendment that results in an increase in the order amount, the shopper is required to use a credit/debit card, gift card, or combination to resolve the difference. PayPal is also not involved as they have already authorized the original amount. The shopper is not expected to share his or her PayPal credentials with agent.
If there is a cancellation of the entire order, the PayPal authorization is voided and not allowed to lapse. Because no funds have been captured, there may be no fees assessed by PayPal.
In the case of the Order Placed option, if a refund is required, the Oracle Commerce Cloud system initiates a refund call to PayPal, because the payment has already been captured. PayPal completes the refund to the shopper’s account.
Note: In the case of refunds, depending upon the merchant’s arrangement with PayPal, a fee may be charged to the merchant.
