How to Configure Paypal IPN and Paypal Express Checkout
PayPal Express Checkout can provide your customers with a fast and easy way to pay for their purchases, and that can be a huge benefit to your company. Not only will your customers enjoy a checkout that’s 3 times faster with PayPal Express Checkout, your business will realize 70% better conversion rates as well. Follow the steps below to ensure correct installation of this convenient PayPal feature.

Before you begin, make sure that you have the login information for your PayPal business account. After that, you’ll need to fill in the following fields:

PayPal Account Setup
Enable IPN within your PayPal account
For Enable language encoding
Enable PayPal Express Checkout or Website Payment Pro
Obtain your API Credentials
For Standard PayPal Configuration
FOR Express Checkout Configuration in Magento.

PayPal Account Setup

Step 1: Login to your PayPal account.

Step 2: Link to your bank account by going to profile->link/edit account.

Step 3: Add your credit card information to your account. This needs to be done even for a business account.

Go to Profile->link/edit card.

Step 4: Enter API Credentials. Click on Profile.

Step 5: Navigate to My Selling Tools -> API Access and click Update.

Step 6: After that, click on Request API credentials.

Step 7: Select Request API signature and click Agree and Submit to generate a set of Signature credentials.

Enable IPN Within Your PayPal Account

This will generate confirmation emails you’ll need to configure IPN within Magento.

Step 1: Go to PayPal’s website and login to your PayPal business account.

Step 2: After logging in, you’ll arrive at the My Account page. See the screen shot below.

Step 3: From the top navigation bar, click on the Profile link.

Step 4: Click on My Selling tools.

Step 5: Find Instant payment notifications on the page, click on Update button.

Step 6:Click on the Choose IPN Settings button

Step 7: You will then be prompted for a Notification URL. This should be set to your storefront homepage’s URL. Magento will automatically override this URL as needed to a proper URL for receiving notifications.

Step 8: Click on the Save button.

Step 9: If you want to be able to view the IPN history in the Magento admin, go go History->IPN History and view the history.

Enable Language Encoding

Step 1: On the My Profile page, click on My selling tools.

Step 2: Click on the Paypal button language encoding button.

Step 3: Select a language, then click the Save button.

Step 4: In the More Encoding Options page, select “UTF-8.” The second option should indicate “Yes.”

Step 5: Save your changes.

Note: All these settings are required for PayPal Standard. If you want to set up PayPal Express Checkout, follow the steps below.

Enable PayPal Express Checkout

Step 1: Before you begin, make sure you have an API username, password, and signature issued by PayPal.

Step 2: Return to the PayPal configuration page.

In the “Express Checkout and Direct Payment” section, you will need to enter three pieces of API data. This is not the same information used by your PayPal business account. Set all fields as shown in the screen shot below.

Obtain Your API Credentials

If your PayPal account does not already have API credentials set up, you will need to complete the steps below.
These steps are intended to help you request API credentials using the business account interface. PayPal requires that you complete an API approval process prior to obtaining your credentials.

Step 1: Go to PayPal’s website and login to your PayPal business account.

Step 2: After logging in, you should be on the My Account page.

Step 3: On the top navigation bar, click on Profile.

Step 4: Next, click on My selling tools.

Step 5: Click on API access Update link.

Step 6: The next page will look like the screen shot shown below. To create the API User Name and Password, click on View API Signature.

Step 7: The next page will display your API Signature credentials, which include API username, password and signature. SAVE THIS FOR FUTURE REFERENCE.

Step 8: When finished, click the Done button. You will need to enter this information into the PayPal configuration page in Magento.

Note: All these setting are required to configure your Paypal account. To enter these payment methods in your website, follow the steps outlined below.

For Standard PayPal Configuration

Step 1: Log in to your Magento Admin Panel. You will arrive at the main Dashboard screen.

Step 2: Go to System-> Configuration like the screen shot shown below.

Step 3: On the Configuration page, you will see a long list of options on the left side of the page. Scroll down to the Sales section and click Payment Methods.

Step 4: In the Payment Methods page, start with merchant location and select the country where your business is located.

For example, select Denmark:

Step 5: After that, click on PayPal payment solutions

Step 6: Click on the Configuration button like the above screen shot. Several fields will be displayed.

Step 7: Under Required PayPal Settings, enter the email address you used to open your PayPal account. Next, choose “Yes” to enable PayPal as the payment processor for your shopping cart.

Step 8: Under “Basic Settings” – PayPal Payments Standard enter the following information:
Title: Enter a title for this payment action. We recommend that you simply use “PayPal, Credit or Debit Cards.”
Sort Order: You can leave this field blank.
Payment Action: You can choose “Sale” or “Authorization.”

Step 9: After that, click on Advance settings and set all fields as shown in the screenshot below.

Step 10: Click on the Save Config button to save the settings.

For Express Checkout Configuration.

Step 11: If you want to offer PayPal Express Checkout, click on Configure.

Step 12: Set all fields as shown in the screen shot below.

If you would like to implement PayPal Express Checkout or any other payment configuration, our Magento experts at Web2Market would be glad to help. Contact us today for more information.
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