PayPal Merchant - 2005 User Manual

Merchant User Manual and Integration Guide

Last Updated: May, 2005

Merchant User Manual and Integration Guide

Notice of Non-Liability

PayPal, Inc. and the authors assume no liability for errors or omissions, or for damages, resulting from the use of this Manual or the information contained in this Manual.

Notice of Non-Liability

PayPal, Inc. and the authors assume no liability for errors or omissions, or for damages, resulting from the use of this Manual or the information contained in this Manual.

4 May, 2005 Merchant User Manual and Integration Guide

Contents

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Chapter 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . .19

PayPal-Supported Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Chapter 2 PayPal Payments Overview . . . . . . . . . . . . . . . . .21

PayPal Account Optional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Buy Now and Donations Buttons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Shopping Cart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Custom Payment Pages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Calculating Shipping, Handling, and Tax . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Contact Telephone Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Auto Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Back-end Integration Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Instant Payment Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Payment Data Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Payment Receiving Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Multi-User Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Subscriptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Payment Flow Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Chapter 3 Getting Started . . . . . . . . . . . . . . . . . . . . . . .27

Managing Your PayPal Merchant Account. . . . . . . . . . . . . . . . . . . . . . . . . . 29

Account Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Payment Receiving Preferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Chapter 4 PayPal Account Optional . . . . . . . . . . . . . . . . . .35

Turning PayPal Account Optional On or Off . . . . . . . . . . . . . . . . . . . . . . . . . 35

Merchant User Manual and Integration Guide May, 2005 5

Contents

Your Customer’s Experience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

What Your Customer Sees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Chapter 5 Creating Buy Now and Donation Buttons . . . . . . . . . . 43

How Buy Now and Donations Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

What Your Customer Sees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

What You See . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Buy Now and Donations Button Factory . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Getting Started. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Creating a Buy Now Button . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Creating a Donations Button. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

How You Get Your Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Notifications You Receive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Email . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Downloadable Logs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Instant Payment Notification (IPN). . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Chapter 6 Creating Shopping Cart Buttons . . . . . . . . . . . . . . 59

How It Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

What Your Customer Sees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

What You See . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

PayPal Shopping Cart Button Factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Getting Started. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Creating Your Shopping Cart Button . . . . . . . . . . . . . . . . . . . . . . . . . . 65

How You Get Your Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Notifications You Receive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Email . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Downloadable Logs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Instant Payment Notification (IPN). . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Chapter 7 Adding PayPal to Your Third-party Shopping Cart . . . . . 71

Passing the Aggregate Shopping Cart Amount to PayPal . . . . . . . . . . . . . . . . . . 71

Passing Individual Items to PayPal . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Chapter 8 Custom Payment Pages . . . . . . . . . . . . . . . . . . .73

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Contents

Examples of Custom Payment Pages . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Adding a Page Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Editing a Page Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Previewing a Page Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Making a Page Style Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Removing a Page Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Overriding Page Style Settings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Background Colors and Error Messages . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Chapter 9 Calculating Shipping, Handling, and Tax . . . . . . . . . .83

Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Sales or Value Added Tax Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Overriding Tax Setting Per Transaction . . . . . . . . . . . . . . . . . . . . . . . . . 83

Shipping Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Flat Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Percentage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Overriding Your Shipping Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Chapter 10 Creating Customer Contact Telephone . . . . . . . . . . .87

How It Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

What You See . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

What Your Customer Sees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Notifications You Receive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Chapter 11 Auto Return . . . . . . . . . . . . . . . . . . . . . . . . .89

How Auto Return Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Setting Up Auto Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Subscription Password Management and Auto Return . . . . . . . . . . . . . . . . . . . 94

Chapter 12 Backend Integration - Payment Notifications . . . . . . . .95

Emails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Instant Payment Notification (IPN) and Payment Data Transfer (PDT) . . . . . . . . . 96

Payment Data Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

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Contents

How It Works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Enabling Payment Data Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Setting Up Payment Data Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . .101

Instant Payment Notification (IPN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

How It Works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

How IPNs Are Sent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104

Setting Up IPN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106

Notification Validation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106

Using IPN with Multiple Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . .107

Dispute Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108

Processing Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108

Chapter 13 Using Multiple Currencies . . . . . . . . . . . . . . . . . 111

Receiving Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111

Accepting Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111

Managing Currency Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113

Chapter 14 Language Encoding for Your Data . . . . . . . . . . . . 115

Background Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115

Changing Your Language Encoding . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115

Your Default Language Encoding at PayPal Sign-up . . . . . . . . . . . . . . . . . .115

Navigating Your Profile: Language Encoding . . . . . . . . . . . . . . . . . . . . . .116

Changing Your Website Language . . . . . . . . . . . . . . . . . . . . . . . . . . .117

More Encoding Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119

Setting Language in Website Payments: charset . . . . . . . . . . . . . . . . . . . . . .120

Chapter 15 Testing . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Website Payments, PDT, and IPN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121

Your PayPal Button . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122

Testing Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123

Third-Party IPN Testing Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . .123

Chapter 16 Processing eChecks . . . . . . . . . . . . . . . . . . . . 125

Blocking eChecks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125

Refunding eChecks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125

Chapter 17 Security . . . . . . . . . . . . . . . . . . . . . . . . . . 127

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Contents

Notification Validation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

Button Encryption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

Multi-User Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128

Getting Started. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129

Using Secure Socket Layer (SSL) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

SSL Certificate Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

Appendix A HTML Samples. . . . . . . . . . . . . . . . . . . . . . . 131

PayPal Buy Now and Donation Buttons HTML and Variables . . . . . . . . . . . . . . . .131

Integrating Buy Now Buttons with your Shopping Cart . . . . . . . . . . . . . . . . .131

Sample Buy Now Button HTML . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131

Sample Buy Now Hyperlink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132

Buy Now and Donations HTML and Hyperlink Variables . . . . . . . . . . . . . . . .132

PayPal Shopping Cart HTML and Variables . . . . . . . . . . . . . . . . . . . . . . . . .137

PayPal Shopping Cart HTML . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137

Standard Add to Cart HTML . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137

Shopping Cart Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138

Adding PayPal Checkout To Your Third-Party Shopping Cart. . . . . . . . . . . . . .138

Passing Individual Items to PayPal . . . . . . . . . . . . . . . . . . . . . . . . . . .139

Prepopulating Your Customer’s PayPal Sign-Up . . . . . . . . . . . . . . . . . . . . . .141

Prepopulation for Website Payments Buttons . . . . . . . . . . . . . . . . . . . . . .141

Prepopulation for Account Signup . . . . . . . . . . . . . . . . . . . . . . . . . . . .142

Sample HTML . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

Appendix B IPN and PDT Variables . . . . . . . . . . . . . . . . . . 145

About These Tables of Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

test_ipn Variable in Sandbox. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

IPN Variables in All Posts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146

Buyer Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146

Basic Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147

Advanced and Custom Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148

Shopping Cart Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148

Currency and Currency Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152

Auctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153

Mass Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154

Subscriptions Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156

Merchant User Manual and Integration Guide May, 2005 9

Contents

Dispute Notification Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160

PDT-Specific Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162

Appendix C Country Codes . . . . . . . . . . . . . . . . . . . . . . 163

ISO 3166 Standard Country Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163

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List of Tables

Table 1.1 PayPal-Supported Currencies, Currency Codes, and Maximum Transation

Amounts 20

Table 1.2 Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Table 8.1 Order of Customization Variables . . . . . . . . . . . . . . . . . . . . . 80

Table 14.1 Character Sets and Encodings Supported by PayPal . . . . . . . . . . .120

Table A.1 HTML and Hyperlink Variables for Buy Now and Donations Buttons. . . .133

Table A.2 Shopping Cart Variables . . . . . . . . . . . . . . . . . . . . . . . . . .138

Table A.3 Third-Party Shopping Cart Variables . . . . . . . . . . . . . . . . . . . .138

Table A.4 Variables for Individual Items in Third-Party Shopping Carts. . . . . . . .139

Table A.5 Prepopulation Variables for Website Payments . . . . . . . . . . . . . .141

Table A.6 Prepopulation Variables for Account Signup . . . . . . . . . . . . . . . .142

Table 17.1 IPN and PDT Variables: Buyer Information . . . . . . . . . . . . . . . .146

Table B.1 IPN and PDT Variables: Basic Information . . . . . . . . . . . . . . . . .147

Table B.2 IPN and PDT Variables: Advanced and Custom Information. . . . . . . .148

Table B.3 IPN and PDT Variables: Shopping Cart Information . . . . . . . . . . . .148

Table B.4 IPN and PDT Variables: Currency and Currency Exchange Information . .152

Table B.5 IPN and PDT Variables: Auctions . . . . . . . . . . . . . . . . . . . . .153

Table B.6 IPN and PDT Variables: Mass Pay . . . . . . . . . . . . . . . . . . . . .154

Table B.7 Subscriptions Variables . . . . . . . . . . . . . . . . . . . . . . . . . . .156

Table B.8 IPN Variables with Each Subscription Event . . . . . . . . . . . . . . . .158

Table B.9 Dispute Notification Variables . . . . . . . . . . . . . . . . . . . . . . .160

Table B.10 PDT-Specific Variables . . . . . . . . . . . . . . . . . . . . . . . . . . .162

Table C.1 ISO 3166 Two-Character Country Codes. . . . . . . . . . . . . . . . . .163

Merchant User Manual and Integration Guide May, 2005 11

List of Tables

12 May, 2005 Merchant User Manual and Integration Guide

List of Figures

Figure 2.1 PayPal Payment Flows . . . . . . . . . . . . . . . . . . . 26

Figure 3.1 Business Account Sign-up . . . . . . . . . . . . . . . . . . 27

Figure 3.2 Confirming Your Email Address . . . . . . . . . . . . . . . 28

Figure 3.3 Adding a Bank Account . . . . . . . . . . . . . . . . . . . 28

Figure 3.4 Merchant Profile Page . . . . . . . . . . . . . . . . . . . . 30

Figure 3.5 Payment Receiving Preferences . . . . . . . . . . . . . . . 31

Figure 8.1 Payment Page in Standard PayPal Page Style . . . . . . . . . 73

Figure 8.2 Payment Page with Custom Style: Header Image and Header

Border 74

Figure 8.3 Payment Page with Custom Style: Header Image, Image Border,

and Background Color 75

Figure 8.4 Editing Page Style Settings . . . . . . . . . . . . . . . . . 77

Figure 8.5 Example of Unallowed Background Color . . . . . . . . . . . 81

Figure 8.6 Example of Allowable Background Color . . . . . . . . . . . 82

Figure 14.1 Profile Seller Preferences for Language Encoding . . . . . . . 116

Figure 14.2 Language Encoding Settings: Basic Choices . . . . . . . . . 117

Figure 14.3 Website Language Preference . . . . . . . . . . . . . . . . 118

Figure 14.4 More Language Encoding Options . . . . . . . . . . . . . . 119

Merchant User Manual and Integration Guide May, 2005 13

List of Figures

14 May, 2005 Merchant User Manual and Integration Guide

Preface

This Document

This document, the Merchant User Manual and Integration Guide, which describes how to use and integrate PayPal features for merchants, replaces the PayPal Merchant User Manual and Integration Guide, issued in February, 2005.

Intended Audience

This document is written for merchants whose websites use PayPal features to obtain payments from PayPal members.

Notational Conventions

This document uses typefaces to identify the characteristics of text. These typefaces and the characteristics they imply are described below:

Typeface How Used

serif italics A document title.

A term being discussed or defined. For example: A file is a readable or writable stream of characters …

Boolean values (not keywords). For example: The function returns true if it encounters an error.

monospaced Pathnames or file names that appear in body text frames.

Code-related names that appear in body text frames. Such names are used for functions, callbacks, arguments, data structures, and fields.

For example: AbstractResponseType is the SOAP response type definition on which all PayPal API response methods are based.

Components of Internet protocol requests and responses, such as HTTPS and FORM variables.

For example: The PayPal system uses a method=POST request to return IPN status variables related to subscriptions, such as txn_type.

Serif bold User interface names, such as window names or menu selections.

For example: On the Profile page, click Email to confirm your email address.

Merchant User Manual and Integration Guide May, 2005 15

Preface

Typeface How Used

San-serif oblique

Placeholders used in the context of a format or programming standard or formal descriptions of PayPal system syntax. Placeholders indicate values or names that the reader should provide.

Example: For example, amount is the variable for a single-item shopping cart, but

amount_

is the item amount for the third item in a multiple-item shopping cart.

X is the name of the variable for a multi-item shopping cart. amount_3

To convey additional information, this document may also apply color and underlining to words or phrases that use the typefaces described above. Such use is described below:

Text attribute How Used

xxxxxx

Documentation Problems

Hypertext link to a page in the current document or to another document in the set.

Hypertext link to a URL or that initiates a web action, such as sending mail.

If you discover any errors in or have any problems with this documentation, please e-mail us by following the instructions below. Describe the error or problem as completely as possible and give us the document title, the date of the document (located at the foot of every page), and the page number or page range.

To contact Customer Service about documentation problems:

1. Go to

https://www.paypal.com/.

2. Click Help in the upper left corner of the page.

3. Click Contact Us in the lower left of the page.

4. Chose Help by Email.

5. Complete the form.

To contact Developer Technical Support about documentation problems:

1. Log in to your account at

https://developer.paypal.com/ by entering your email address and

password in the Member Log In box

2. Click Help Center at the bottom of the box on the right side of the page.

3. Click Email PayPal Technical Support.

4. Complete the form.

16 May, 2005 Merchant User Manual and Integration Guide

Preface

Merchant User Manual and Integration Guide May, 2005 17

Preface

18 May, 2005 Merchant User Manual and Integration Guide

Introduction

The Merchant User Manual and Integration Guide provides information about the majority of PayPal's features, and instructions for using these features to meet your online payment needs.

Use the Merchant User Manual and Integration Guide to:

z Quickly and easily set up eCommerce functionality with PayPal. For example, learn how to

integrate PayPal into your website in minutes with the PayPal Shopping Cart or Buy Now buttons.

z Learn more advanced techniques and tools to get the most out of the PayPal products. For

example, set up Instant Payment Notification to integrate PayPal payments with your business's back-end operations.

z Understand what your buyers see when they pay with PayPal. For example, review what it

means for a new buyer to optionally create a PayPal account using the PayPal Account Optional feature.

z View various product flows to better visualize your end product.

z Review recommended solutions and best practices.

The Merchant User Manual and Integration Guide includes information about, and instructions for using, the following features:

z Buy Now Buttons

z Donations Buttons

z Shopping Cart Buttons

z PayPal Account Optional

z Custom Payment Pages

z Instant Payment Notification

z Payment Data Transfer

z Multi-User Access

z Shipping, Handling, and Tax

z Auto Return

Merchant User Manual and Integration Guide May, 2005 19

Introduction

PayPal-Supported Currencies

The following currencies are supported by PayPal.

TABLE 1.1 PayPal-Supported Currencies, Currency Codes, and Maximum

Transation Amounts

Code Currency

AUD Australian Dollar 12,500 AUD

CAD Canadian Dollar 12,500 CAD

EUR Euro 8,000 EUR

GBP Pound Sterling 5,500 GBP

JPY Japanese Yen 1,000,000 JPY

USD U.S. Dollar 10,000 USD

Maximum Transaction Amount

Additional Information

The following table lists URLs you can consult for more information about PayPal.

NOTE: In most cases, you must log in to PayPal to see this additional information.

ABLE 1.2 Additional Information

Information URL

Fees https://www.paypal.com/fees

Onlines Security https://www.paypal.com/security

User Agreement and Policies

Online Help https://www.paypal.com/fees/help

Customer Service https://www.paypal.com/wf

https://www.paypal.com/cgibin/webscr?cmd=p/gen/ua/ua-outside

20 May, 2005 Merchant User Manual and Integration Guide

PayPal Payments Overview

This section provides a brief overview of each of the products described in this manual.

PayPal Account Optional

With PayPal Account Optional turned on, your customers who are new to PayPal will be able to make credit card payments without signing up for a PayPal account. This setting is available from your Profile, and is available to Premier and Business accounts.

PayPal Account Optional is turned on by default for all U.S. Premier and Business accounts. This means that your customers who already have PayPal accounts will go through the same Website Payments experience to which they’re accustomed.

Your new customers, or existing customers who are new to PayPal, will go through a checkout that doesn’t require PayPal signup; however, they will have that option available after completing the payment. Whether customers sign up for a PayPal account or not, you can set your Buy Now, Donations, and Shopping Cart Buttons to return them to your website, and you will still receive the same notification emails as in the current checkout flow.

For more information about PayPal Account Optional, see Chapter 4, “PayPal Account

Optional.”

Buy Now and Donations Buttons

PayPal makes it easy to accept donations and payments for single items through your own website. The Buy Now and Donations Buttons feature can be implemented in minutes, giving you easy access to business from PayPal’s millions of members, and any other buyer on the Web.

Because using Buy Now and Donations Buttons to send and receive payments is secure, both you and your customers remain protected. PayPal automatically encrypts your confidential information using the Secure Sockets Layer (SSL) protocol with an encryption key length of 128 bits (the highest level commercially available). Your customers will not need to share their private financial information (e.g. credit card or bank account numbers) during the transaction, so they can complete payment while retaining security. However, using button encryption does impose some limitations, and therefore PayPal does offer both encrypted and unencrypted button options.

The flexibility of our Buy Now Buttons feature will keep your website working for you. You can accept payments from current PayPal members as well as people who have just signed up for our service, and you won’t lose your customers after they have made a purchase—the payment process lets you return buyers to your website, not lose them to ours.

Merchant User Manual and Integration Guide May, 2005 21

PayPal Payments Overview

Shopping Cart

Benefits of Buy Now and Donations Buttons include:

z Easy to implement — no CGI scripting necessary.

z No up-front costs — you’ll have the same low fee schedule used as when you receive other

PayPal payments.

z Sell with ease — PayPal maintains detailed transaction records on the PayPal website.

z Improve buyer experience — with customizable buttons and secure payments, happy

customers become repeat customers.

For more information about Buy Now and Donations Buttons, see Chapter 5, “Creating Buy

Now and Donation Buttons.”

Shopping Cart

When you use PayPal’s free Shopping Cart, your customers can purchase multiple items with a single payment, browse your entire selection, and view a consolidated list of all their items before purchasing. The PayPal Shopping Cart is a low-cost way for you to accept credit card and bank account payments, and can be fully integrated with your website in a few easy steps.

The PayPal Shopping Cart also offers customizable buttons and secure payments to help you improve your buyer experience, so happy customers become repeat customers.

For more information about PayPal's Shopping Cart, see Chapter 6, “Creating Shopping Cart

Buttons.”

Custom Payment Pages

With our Custom Payment Pages feature, you can tailor PayPal's payment pages to the style of your website for a truly seamless payment experience. Make PayPal's payment flow yours with custom page colors and your own images. Custom Payment Pages can be used with all PayPal Website Payment buttons, including Buy Now, Donations, Shopping Cart, and Subscriptions.

For more information about Custom Payment Page, see Chapter 8, “Custom Payment Pages.”

Calculating Shipping, Handling, and Tax

You can set up your PayPal account to automatically calculate and charge shipping and sales (or value added) tax, as well as specify a different tax rate for each of the 50 U.S. states and any of the countries listed. In addition, you can charge shipping costs as a fixed rate based on the amount of the total purchase, or as a percentage of the purchase price. You also have the option to assign shipping amounts to individual products.

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For more information about shipping and tax, see Chapter 9, “Calculating Shipping, Handling,

and Tax.”

Contact Telephone Number

The Customer Contact Information Telephone field provides merchants with a contact telephone number for their buyer. In accordance with our User Agreement, merchants may only use this Contact Telephone Number to communicate with buyers about the related purchase. This number may not be used for unsolicited commercial messages.

Auto Return

Auto Return for Website Payments allows merchants to eliminate the Payment Receipt page in the Website Payments flow and automatically return or redirect buyers to their website upon payment completion.

PayPal Payments Overview

Contact Telephone Number

For more information about Auto Return, see Chapter 11, “Auto Return.”

Back-end Integration Methods

There are two back-end integration methods, Instant Payment Notification and Payment Data Transfer.

Instant Payment Notification

PayPal's Instant Payment Notification (IPN) allows you to integrate PayPal payments with your website's back-end operations. IPN provides immediate notification and confirmation of PayPal's payments you receive, allowing you to:

z Customize your website's response to customer purchases in real-time.

z Track customers through the notification's pass through variables.

z Automate your fulfillment operations.

z Store transaction information in your own database.

Once you activate IPN, you will receive an IPN when a payment is first received that will display the status of the payment (Completed or Pending). If the payment status was Pending, you will receive another IPN when the payment clears, fails, or is denied.

IPN can be seamlessly integrated with each of the PayPal Website Payments solutions (Buy Now Buttons, PayPal Shopping Cart, Subscriptions and Recurring Payments, and Donations), as well as with regular PayPal Send Money and Mass Pay payments, and lets you focus on selling, not on manually tracking your orders.

Merchant User Manual and Integration Guide May, 2005 23

PayPal Payments Overview

Payment Receiving Preferences

For more information about IPN, “Instant Payment Notification (IPN) ” on page 103.

Payment Data Transfer

Payment Data Transfer (PDT) provides merchants with the ability to display transaction details to buyers who are redirected back to their site upon payment completion.

For more information about PDT, see “Payment Data Transfer” on page 96.

Payment Receiving Preferences

Once you have set up your PayPal account, you’re ready to start receiving payments. Your Payment Receiving Preferences let you manage the types of payments you receive.

For more information about Payment Receiving Preferences, see “Payment Receiving

Preferences” on page 31.

Refunds

You can automatically send a refund to your buyer for 60 days after receiving payment by using the refund link.

For more information about sending refunds, see “Processing Refunds” on page 108.

Multi-User Access

PayPal’s Multi-User Access feature allows you to set up multiple logins and access levels, so your employees only have access to the parts of your Paypal account that they need to complete their jobs, letting you run your business smoothly and securely.

For more information about Multi-User Access, see “Multi-User Access” on page 128.

Reports

PayPal’s Reporting Tools provide you with the information you need to effectively measure and manage your business. With PayPal’s Reporting Tools, you can:

z Analyze your revenue sources to better understand your customers’ buying behavior.

z Automate time-consuming bookkeeping tasks.

z Accurately settle and reconcile transactions.

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For more information about PayPal's Reporting Tools, see https://www.paypal.com/us/cgi-

bin/webscr?cmd=p/xcl/rec/reports-intro-outside.

Subscriptions

PayPal Subscriptions and Recurring Payments is a service that will let you accept recurring payments for your service.

When you set up Subscriptions, you can offer your subscribers a trial period, special introductory rates, and a regular rate. Your subscribers will be billed automatically according to the terms you dictate, removing the hassle of keeping track of which payments you have and have not received.

For more information about PayPal Subscriptions and Recurring Payments, see the PayPal Subscriptions manual, which is available on the PayPal website.

PayPal Payments Overview

Subscriptions

Merchant User Manual and Integration Guide May, 2005 25

PayPal Payments Overview

Payment Flow Overview

The following diagram represents an overview of the PayPal payment flows.

FIGURE 2.1 PayPal Payment Flows

26 May, 2005 Merchant User Manual and Integration Guide

Getting Started

You can start accepting payments with PayPal in 5 easy steps:

Step 1 - Sign Up: Go to hand corner of the page. Click the Business link to sign up for a Business account, as shown in the following diagram. Make sure to write down the email address you use and the password you choose; in the future, you will use them to login to your PayPal account.

FIGURE 3.1 Business Account Sign-up

https://www.paypal.com/ and click the Sign Up link in the upper right-

Step 2 - Confirm Email Address: After completing the two-page signup, PayPal will send

you an email to confirm your email address. Open your email and click the link in the email we sent you. You will be taken to a PayPal page and asked to enter your password, as shown in the following diagram. Once you have successfully entered your password, your email address will be confirmed.

IMPORTANT:PayPal representatives will never ask you for your password, and will never

ask you to enter your password or financial information in an email or send such information in an email. If you believe someone has learned your password, please change it immediately and contact PayPal customer service as soon as possible.

Merchant User Manual and Integration Guide May, 2005 27

Getting Started

FIGURE 3.2 Confirming Your Email Address

Step 3 - Add Bank Account: In order for PayPal to add funds to your bank account, you must add it. Before you add your bank account, you will need a check or deposit slip for that bank account. Log in to your PayPal account and click the Profile subtab of the My Account tab. Click the Bank Accounts link in the Financial Information column. On the Bank Accounts page, click Add to reach the page shown in the following diagram. Once you have added your bank account, it will become your Primary bank account. If you decide to add additional bank accounts to your PayPal account, you can change any of them to be your primary account.

FIGURE 3.3 Adding a Bank Account

In order for PayPal to confirm that you are the owner of the bank account, PayPal will send two small deposits, each of less than $1.00, to your bank account. Check your bank statement in 3-4 business days, or check online, for the amounts of the two deposits. After getting the deposit amounts, log in to your PayPal account and click the Confirm Bank Account link in the Activate Account box on your Account Overview. Enter the amounts of each of the deposits on the page and your bank account will be confirmed and you will become Verified.

Step 4 - Add Credit Card (optional): Log in to your PayPal account and click the Profile subtab of the My Account tab, as shown in the following diagram. Click the Credit Cards link in the Financial Information column. On the Credit Cards page, click the Add button. The credit card you added will become your primary credit card, meaning it is the default

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Getting Started

Managing Your PayPal Merchant Account

credit card used on your PayPal account. If you decide to add additional credit cards to your PayPal account, you can select any of them as your primary card.

In addition, the credit card billing address you entered when you added your credit card is now a Confirmed Address. Many sellers require that buyers use their Confirmed Address as their shipping address when they pay with PayPal. You can use Confirmed Addresses as a positive indicator of a buyer’s identity. When you ship to a Confirmed Address, you can qualify for protection under PayPal’s Seller Protection Policy. For more information about PayPal's Seller Protection Policy, see the PayPal User Agreement, which is available on the PayPal website.

Step 5 - Start Receiving Payments: Now that you’ve set up everything in your PayPal account, you’re ready to start receiving payments.

Managing Your PayPal Merchant Account

Account Profile

The PayPal account Profile consolidates all of the different settings and preferences for your account. You can use your Profile to manage all of the information in your PayPal account. To go to your Profile, log in to your PayPal account and click the Profile subtab of the

Account tab, as shown in the following diagram.

Your Profile is organized in three sections for managing your account information, as shown in the following diagram.

Merchant User Manual and Integration Guide May, 2005 29

Getting Started

Managing Your PayPal Merchant Account

FIGURE 3.4 Merchant Profile Page

Account Information

Use the Account Information column to perform basic account maintenance, including updating your password, adding and confirming email addresses, and managing your business information.

Financial Information

Use the Financial Information column to organize and maintain all of the financial instruments associated with your PayPal account, including adding credit cards and bank accounts, activating and managing your PayPal Debit Card, maintaining your Multiple Currency Balances, and viewing your Monthly Account Statements.

Selling Preferences

Use the Selling Preferences column to organize the way you sell with your PayPal account, including editing your Payment Receiving Preferences, tax, and shipping.

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