Paypal Instant Payment Notification (IPN)

This is continuation of the previous post how to setup Paypal Express Checkout in your website. You do not necessarily need to setup Paypal Instant Payment Notification (IPN), but if want to automate tasks and keep track of customer actions back in their PayPal account, you should create and setup an IPN listener script.

PayPal Express Checkout with PHP

Paypal is the most popular and convenient way to get paid. If you are selling some products in your website, you should definitely use Paypal payment gateway, why? because it’s free and there are over 350 million Paypal users all over the world who would happily purchase your products.

In this tutorial let us find-out how we can use Paypal Express Checkout in websites to sell some products instantly.

Paypal Instant Payment Notification (IPN) URL

Pointing Paypal Instant Payment Notification (IPN) to your listener script is very easy, just follow screenshot instructions below and your script will start receiving any transaction notification from Paypal. You can also read how to setup Paypal IPN listener script in your website.

1. Login to Paypal, click profile -> My Selling tools and then update Instant Payment Notification.
   
2. Enter IPN listner script path in Notification URL field.
   

Getting Paypal API username and Password

If you are wondering how to get Paypal API  username, password and signature. It’s fairly easy, just follow steps provided below with screenshots. Note: Your account must be a Premier or Business account.

Creating Paypal Sandbox Account

1. Obtain API Credentials from a Sandbox Test Account Go to https://developer.paypal.com/
2. Login to your PayPal’s Sandbox Test environment account. (or create an account if you don’t have one.)
3. Select Test Accounts.
4. Click the Create Test Accounts link.
5. Select Test Accounts.
6. Choose Seller for the Account Type.
7. Change the password to something you can remember and make a note of it.
   Note: The Login Email is a pseudo-randomized address, which is based on the login email address you used to create your sandbox account. Credit card and bank account numbers are also generated randomly.
8. Click Create Accounts when you are finished modifying the account.
9. From the Test Accounts list, select the account you created and click Enter Sandbox.
10. Log into the account.
11. Click My Account.
12. Click Profile.
13. Under Account Information, click API Access.
14. Click Request API Credentials.
15. Click API Signature.
16. Click the Agree checkbox.
17. Click Submit.
18. Make a note or copy/paste these fields into the PayPal Shopping Cart Integration Wizard Generate Code form:
    API username
    API password
    signature
    You can always retrieve these credendials from the Sandbox Test Environment by selecting API Credentials to view the API credentials you have created for test accounts.