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Getting Started with PayPal Express Checkout

With the integration of PayPal Express Checkout, you can choose to offer PayPal as a payment method in your store.

What Customers See


Figure 1: The Checkout flow with PayPal selected as payment method.
  1. After selecting products to purchase, your customer chooses to pay with PayPal. Customers also have the option of using your existing checkout for credit card payments.
  2. Your customer is transferred to PayPal. You can customize aspects of the PayPal Payment pages, such as the header and background color, to make these pages more like your custom checkout pages.
  3. Your customer logs in to their account and confirms their shipping address and billing information that PayPal has stored. Your customer clicks Continue to use PayPal to pay for their purchase. Note: Merchants can also enable the PayPal Account Optional feature which allows buyers to checkout at PayPal without a PayPal account using a credit card.
  4. Your customer is transferred back to your website to review their order and complete the checkout process.
  5. Your customer submits their order on your website. Your website makes an API call to PayPal to process the transaction; this is invisible to your customer. Once the payment is processed, PayPal sends your website a confirmation.
  6. Your customer is taken to your order confirmation screen.

One key advantage to this setup is shoppers have less information to fill out during checkout as they are typically using stored shipping addresses and funding sources within PayPal. This can be perceived by shoppers as a quicker checkout experience.

Signing up for PayPal Express Checkout from the Payment Wizard

If you are not open for business and have yet to set up a payment method, you will use the Payment Wizard to sign up for or set up PayPal Express Checkout.

To sign up for PayPal Express Checkout:

  1. From the Open for Business Control Panel, click the "Payment Methods" link.
  2. Click Set Up My First Payment Method.
  3. Select the No option and click Next.
  4. Select the option for PayPal Express Checkout and click Next.
  5. Read the information and click Signup for PayPal Express Checkout.
  6. Complete the steps in the PayPal signup and setup process:
    • select an account type
    • enter your business and personal information
    • select account information and provide security information
    • confirm your email address with PayPal
    • grant API access to Yahoo!

Your account will remain as "pending" in the Payment Center until you have completed all necessary steps at PayPal. Once complete, your account will appear as PayPal Express Checkout in the Payment Center.

To set up an existing PayPal Business account for PayPal Express Checkout:

  1. From the Open for Business Control Panel, click the "Payment Methods" link.
  2. Click Set Up My First Payment Method.
  3. Select the Yes option, select the PayPal option, and click Next.
  4. Read the information and click Configure PayPal Account.
  5. Complete the steps in the PayPal setup process including granting API access to Yahoo!.

Signing up for PayPal Express Checkout from the Payment Center

If you have already opened for business, or have already set up at least one payment method in the Payment Wizard, then you can use the Payment Center to sign up for PayPal Express Checkout.

To sign up for PayPal Express Checkout:

  1. From the Store Manager, click the "Payment Center" link appearing in the Order Settings column.
  2. Click Add New Processor.
  3. Select the option for PayPal Express Checkout and click Next.
  4. Read the information and click Signup for PayPal Express Checkout.
  5. Complete the steps in the PayPal signup process:
    • select an account type
    • enter your business and personal information
    • select account information and provide security information
    • confirm your email address with PayPal

Your account will remain as "pending" in the Payment Center until you have completed all necessary steps at PayPal including enabling the APIs to allow Yahoo! to communicate on your behalf with PayPal. Once complete, your account will appear as PayPal Express Checkout in the Payment Center.

PayPal Display and Transaction Settings

  • Transaction Settings (optional)
    You can choose how your PayPal transactions are processed: automatic capture or authorize only. With automatic capture (on by default), funds from transactions are captured automatically when the order is placed. With authorize only, an authorization is made, but you must manually capture the funds in the Order Manager for each PayPal transaction. There are benefits to each setting depending on your business needs. Learn more about transaction settings.
  • Customize PayPal Payment Pages (optional)
    As shown in figure 1, buyers that select to pay with PayPal will leave your site to log in to PayPal, select or add a shipping address, and select a funding source. You can customize certain aspects of the visual design of PayPal Payment pages to make them look more like your custom checkout pages. Learn more about customizing PayPal payment pages.
  • Display PayPal as a payment option
    When you have added PayPal as a payment option, you will then need to decide where (what pages) in your checkout flow to display the PayPal option. With the PayPal integration, you can choose to display PayPal in the Shopping Cart, on the combined Shipping and Billing page (if applicable), or in the Payment Methods section of the Billing page. Learn more about display options.

Capturing funds and other PayPal Transactions

When you have set up your PayPal account, and have enabled displaying PayPal in your custom checkout pages, your shoppers can then select to use PayPal to pay for orders. Depending on your transaction settings, you may already capture funds automatically from orders with PayPal as the payment method. If you have your transaction settings set to "authorize only", then you will need to capture funds in the Order Manager. To perform other transactions such as reauthorizing, voiding an authorization, or refunds, you will use the transaction control panel in the Order Manager.

Note: This document relates to PayPal Express Checkout. Yahoo! is now also integrated with PayPal Payments Pro.

See Also


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