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I am planning a specialized ecommerce website where users can buy and sell digital content. The site will take a 5% fee per purchase, and then allow the seller to request a withdrawal once a seller reaches a minimal amount. My concern however, is how to deal with paypal disputes from buyers... The way the site is configured, the money will go into the sites paypal account, and then be sent to the seller upon withdrawal request, this means that any paypal disputes will be directed to the ecommerce website rather than the seller, so if the seller has already received the funds, and the buyer makes a paypal dispute, i run the risk of loosing the money. What is the standard way of dealing with this issue? I could of course have it set up so that the buyers pay to their respective sellers directly, but then i will not be able to charge a fee per transaction... Is there a way to have buyers pay sellers directly, but have a fee (similar to shipping/handling fee) sent to a different paypal account? thanks.

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Use a payment system like Paypal Adaptive Payments to split the payment at the time the payment was made. That way you get your cut before a dispute occurs.

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