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PayPal Express Checkout Gateway


PayPal Express Checkout Gateway

Zuora provides two options for supporting the PayPal payment method: PayPal Express Checkout and PayFlow Pro.

  • Express Checkout: the flagship product that supports just the PayPal payment method (available globally)
  • Payflow Pro: Supports credit card and the PayPal payment methods (available in the U.S., Canada, U.K., Australia, and New Zealand)
  • Payflow: Supports only credit cards.

It is recommended that Express Checkout is used whenever processing via the PayPal payment method is desired.

Supported Gateway Reconciliation Event Types 

PayPal Express Checkout Gateway supports the following Gateway Reconciliation event types:

  • Settlement
  • Rejection
  • Chargeback

Note that Zuora only creates an external refund for a transaction if the transaction status is Reversed, which maps into the Chargeback event type.

How Zuora Reconciles Payments

The PayPal Express Checkout gateway handles various transactions, for example, payments, refunds, and eCheck. Zuora, however, only reconciles payments through PayPal Express Checkout.

Zuora reconciles payment transactions two times. For payment transactions that take place on day N:

  • They will be reconciled on day N+7 for the first time. All supported event types are processed.
  • The second reconciliation is performed on day N+16, whereas only the following event types are processed:
    • Settlement
    • Rejection

If a transaction is in an intermediate status instead of final status on day N+16, it cannot be reconciled. At a later time, you can manually create a refund, or use the Gateway Reconciliation REST APIs to reconcile the payment.

Zuora uses PayPal's TransactionSearch API Operation (NVP) API on a daily basis to search for the transactions for reconciliation. The following table describes how different transaction status is mapped to the corresponding gateway reconciliation event type:

Status in TransactionSearch request Status in TransactionSearch response Gateway reconciliation event type
  • Completed
  • Cleared
Payment settlement
  • Canceled
  • Returned
Payment rejection
  • Reversed
Payment chargeback

API Verison

The PayPal Express Checkout Gateway integration in Zuora is implemented based on the PayPal Name-Value Pair (NVP) API. Although the new features and enhancements of PayPal will only be added to the PayPal REST API, the classic API is still supported. When you are implementing the PayPal Express Checkout, the same API supported in Zuora PalPal Express Checkout Gateway integration will be used because Zuora will run the request on your behalf.

Configure the PayPal Express Checkout Gateway

You must have PayPal API credentials prior to configuring the PayPal Express Checkout gateway. See PayPal documentation for more information on how to obtain API credentials.

  1. Navigate to Settings > Payments > Setup Payment Gateway
  2. Select PayPal Express Checkout from the Gateway Type drop-down menu.
  3. Click create gateway.

Currently, Zuora does not support Payment Review in PayPal Express Checkout. Contact your PayPal Account Manager or the PayPal Customer Support to disable Payment Review.

See Payment Review for related information.

Common Configuration Fields

There are some common fields you must complete for every gateway configuration. We recommend reviewing Setting Up Payment Gateways for information on these fields: 

  • Name
  • Use Gateway Test Environment
  • Username

Username for API credentials username

  • Password

Password for API credentials password

  • Signature

API credentials signature

  • Verify new Paypal Express Checkout payment method
  • Enable gateway reconciliation

The Gateway Reconciliation job for PayPal Express Checkout is scheduled to start at 3:00 pm (PST) every day.

For more information about this option, see Gateway Reconciliation.

Once you have entered the necessary information, click save gateway information.

See PayPal BAID for more information on capturing a customer's PayPal payment method.

Non-referenced Refunds

Non-referenced refunds are supported by PayPal Express Checkout. 

Testing Your Configuration  

We recommend that you test your payment gateway using both your payment gateway's test and production (live) environments.  Once you have completed testing in the gateway's test environment, it is recommended that you perform a test in your live production environment with a real credit card. If there are any differences in the configuration of your testing and production accounts, testing in production ensures your production merchant account is set up properly and can successfully connect to the production environment.

You can use the test card information and testing scenarios provided by the gateway vendor to test your integration. See PayPal 3D Secure test scenarios or PayPal Payflow documentation PayPal Express Checkout's Testing Guide for more information.