I'm working in an application that will help a local merchant to accept orders online. My app will act as a "wrapper" and I will take a percentage of every transaction plus the paypal fees(lets say 5% total)
The approach I was thinking of is to do the split before submitting the payment and then pay each party its share of the money(me & the merchant). Then I realized that this will cause the paypal fees to apply to each party individually.
Has any of you done anything like this? Can you suggest a better approach?