PayPal Payments

PayPal is a supported browser payment method in the Mastercard Payment Gateway. This page describes integration details specific to PayPal, including how to configure your PayPal business account to accept payments via the gateway, branding requirements, etc. It's recommended that you read the integration guidelines for browser payments, before building a PayPal integration.

If you are integrated to use PayPal before API version 50, click here.

Prerequisites

To use PayPal as a payment method via the Mastercard Payment Gateway, you must have a PayPal business account configured for the gateway. For details, see Configuring your PayPal Business Account.

To sign up for a PayPal business account, click here.

PayPal Checkout Experience

The following sections will help you choose a PayPal checkout experience that's most suitable for your site.

{
   "apiOperation":"INITIATE_BROWSER_PAYMENT",
   "browserPayment":{
      "operation":"AUTHORIZE",
      "paypal":{
         "paymentConfirmation":"CONFIRM_AT_MERCHANT"
      },
      "returnUrl":"Https://test.com"
   },
   "order":{
      "amount":"4.20",
      "currency":"USD"
   },
   "sourceOfFunds":{
      "type":"PAYPAL"
   }
}
        

{
   "apiOperation":"INITIATE_BROWSER_PAYMENT",
   "browserPayment":{
      "operation":"PAY",
      "paypal":{
         "paymentConfirmation":"CONFIRM_AT_PROVIDER"
      },
      "returnUrl":"Https://test.com"
   },
   "order":{
      "amount":"4.20",
      "currency":"USD"
   },
   "sourceOfFunds":{
      "type":"PAYPAL"
   }
}
        

PayPal Integration

PayPal as a Checkout Option in Hosted Checkout

If you are using the Mastercard Payment Gateway payment page (Hosted Checkout) PayPal will automatically be offered as a checkout option to your payers if your payment service provider has configured the PayPal acquirer link on your merchant profile. For details, see Browser Payments via Hosted Checkout Integration.

PayPal as a Checkout Option on your Payment Page

You can add PayPal as a checkout option on your payment page if you are integrated to API version 50 or above. You must submit the Initiate Browser Payment request from your server-side application to initiate the PayPal interaction.

The payer is redirected from your site to PayPal to log in and complete the payment details. For details, see PayPal via Direct Payment.

PayPal via Direct Payment

The following fields in the Initiate Browser Payment request are either specific to PayPal or have a specific usage in the PayPal integration. For other details, see Browser Payments via Direct Payment Integration.

• sourceOfFunds.type = PAYPAL
• browserPayment.operation = AUTHORIZE or PAY
  

  With PayPal, funds can be held for 3 days (honor period) from the time the authorization occurred. If you still wish to capture the funds after 3 days, you can use the Update Authorization operation or initiate via Merchant Administration.

  By default, your PayPal merchant account is configured for single captures only. If you wish to change the configuration to support multiple captures, please contact PayPal.

  Operation Field API Reference [REST][NVP]

• browserPayment.paypal.paymentConfirmation

  When initiating a PayPal payment, you must specify if you want the payer to confirm the payment at PayPal or your site.

  Payment Confirmation Field API Reference [REST][NVP]

  If confirming at the provider (PayPal), the PayPal displays a "Pay Now" button, which allows the payer to confirm the payment at PayPal before being redirected to your site. You must submit a Retrieve Transaction request to the Mastercard Payment Gateway to determine the success or otherwise of the payment.

  If confirming on your site, the PayPal displays a "Continue" button, which allows the payer to be redirected to your site where the payer can confirm the payment. You must send a Retrieve Transaction request to the gateway to retrieve details on whether the payer has continued with the payment or not. If the payer continues with the payment on your site, you need to send a Confirm Browser Payment call to confirm the payment with PayPal. The Confirm Browser Payment response will contain information about the success or otherwise of the payment.

  Confirm Browser Payment API Reference [REST][NVP]

  In both cases, if the payment is successful the Retrieve Transaction returns:

  • the email address on the payer's PayPal account
  • the account holder name on the payer's PayPal account
  • the payer ID associated with a payer's PayPal account'
  • the shipping address details

  Example Request

       {
          "apiOperation":"CONFIRM_BROWSER_PAYMENT",
          "order":{
             "amount":"4.20",
             "currency":"USD"
          }
       }
                

• [Optional] Display/Override Shipping Address

  You can manage how the payer provides you a shipping address using two fields:

  • browserPayment.paypal.displayShippingAddress — when set to true (default), the shipping address is displayed at PayPal.

    Display Shipping Address Field API Reference [REST][NVP]

  • browserPayment.paypal.overrideShippingAddress — when set to true (default), the payer can change the shipping address at PayPal.

    Override Shipping Address Field API Reference [REST][NVP]

  By default, PayPal collects the shipping address from the payer at PayPal for you. If you choose to collect the shipping address from the payer on your site, and you do not want PayPal to display the shipping address to the payer, you must set browserPayment.paypal.displayShippingAddress to false. This also applies when a shipping address is not required for an order (for example, digital products only).

  The gateway will always return the shipping address in the Retrieve Transaction response if the address was supplied in the Initiate Browser Payment request or if browserPayment.paypal.displayShippingAddress is set to true.

  You should use the shipping address returned in the transaction response in case the shipping address was changed by the payer at PayPal. Please note that PayPal validates city, state, ZIP code combinations for U.S. shipping addresses.
• [Optional] Line Item Details

  You can specify line item details in the Initiate Browser Payment request to provide payers with all the order details before they confirm the payment. Consumer research shows that more buyers complete purchases when they see the individual items and other details of an order during PayPal checkout. Hence, it's recommended that you provide order information when you initiate a PayPal checkout to encourage payers to continue with the payment rather than dropping out.

  Line items are considered provided if the item name or unit price is specified. For more information on line item details, see Line Item Data.

How to Interpret the Transaction Result

The table below shows the transaction response codes for the possible scenarios you may encounter after initiating a browser payment.

Authorization Updates

You can update authorization honor period and/or increment authorization amounts for valid PayPal authorization transactions using the Update Authorization operation or via Merchant Administration. To allow this, you must have the "Update Authorization" privilege enabled on your merchant profile by your payment service provider. For more information, see Update Authorization.

It is recommended that you update an authorization after the initial 3 days (honor period) to ensure that funds are still available. A reauthorized payment has a new 3-day honor period. The 3-day honor period can be updated at most once within the 29-day validity period.

You can update an authorization once for up to a maximum of 115% or USD $75 of the originally authorized amount.

Captures, Refunds, and Voids

For PayPal payments, you can capture the authorized amount in part or in full of the originally authorized amount using the Capture operation or through Merchant Administration.

You can refund payments processed via PayPal in part or in full for Pay and Capture transactions. You can submit Refund requests using the Refund operation or using Merchant Administration.

You can void any Authorized transaction if capture attempts have failed or you can refund a Pay transaction to reverse the payment. You can submit the Void or Refund request using the API operation, Void and Refund or through Merchant Administration.

Pending Payments

The gateway may return a status of PENDING in the transaction response. For example, if the transaction is currently under risk assessment at PayPal. If the status is pending and if you have configured your own fraud management filters, you should log on to your PayPal business account and review the payment. PayPal will notify the gateway when the status of a pending transaction is updated by PayPal.

Billing Agreement and Recurring Payments

Using Checkout with PayPal or Pay with PayPal, you can set up a billing agreement for a payer, which allows you to initiate a reference transaction (subscription/recurring or on-demand payments) against this billing agreement without additional consent from the payer. For more information, see Billing Agreement and Recurring Payments.

Configure your PayPal Integration

To process transaction through PayPal, you must grant the gateway permission to submit transactions requests to PayPal on your behalf. To grant third-party permission, you must log in to the Merchant Administration portal. On the PayPal configuration page, you can see the PayPal merchant acquirer links that your payment service provider has configured for you. If you have not granted the third-party permission on the acquirer link, the Account ID field remains empty. Hence, you must grant permission to the gateway so that gateway can make API calls on your behalf.

Enhanced Seller Protection

You can submit additional payer data in the Initiate Browser Payment and in the subsequent Pay or Authorize requests after performing Tokenize Browser Payment to allow PayPal to perform risk assessment of the transaction before the transaction is processed.

The data in the following fields is used by PayPal to perform a pre-transaction risk management evaluation:

• device.fingerprint: A unique identifier for the device that can be generated using the PayPal FraudNet Javascript library. This allows PayPal to perform risk assessment of the transaction.
• risk.custom: You can provide additional data about the payment in this field. You must have an agreement with PayPal about the values you wish to provide. For example, risk.custom.headOfficeLocation=London UK.
• sourceOfFunds.token: The token Id that identifies the billing agreement details (as received from PayPal) on the gateway. You can use this token Id for one-time and recurring payments. For more information, see Billing Agreement and Recurring Payments.
  For direct payment, the sourceOfFunds is PayPal.

Excessive Refund

Excessive Refunds must be enabled at the PayPal site. You can capture the excess authorised amount either through the Capture request or the Merchant Administration.

An excess capture of up to 115% of the original authorized transaction is allowed. You can refund the excess payments processed via PayPal for the Pay and the Capture transactions.

You can submit the Refund requests either through the Refund operation or Merchant Administration.

For excess refund, include the amount that is in excess of the original transaction amount. To refund in excess of the captured amount, ensure that you are enabled for excessive refunds on your PayPal merchant profile.

If your PayPal profile is enabled for excessive refunds then ensure to configure your Mastercard Payment Gateway merchant profile for the same.

Testing Your Integration

The Mastercard Payment Gateway provides a PayPal simulator that allows you to test your integration for using the PayPal functionality through the gateway.