How to Configure Paypal in Magento?

PayPal is considered one of the top payment gateways recognized around the world. That’s why adding it to your Magento store checkout makes it more attractive for customers.

Moreover, PayPal checkout is more secure for both parties. Customers can pay by credit card or from their PayPal account with no risks while merchants can be sure PayPal will handle the transaction. 

Besides, there are multiple PayPal payment options in Magento that make it even more flexible and versatile. 

So, in this article, you will learn how to configure various PayPal payment solutions to set them up along with other Magento 2 payment methods.

To offer PayPal as a payment option on your Magento store you have to register a PayPal business account or PayPal Payflow account.

Before we go to the PayPal payment options, let’s review how you can set up a PayPal account.

To set up a PayPal merchant account:

1. Log in to your account on manager.paypal.com. 

2. Navigate to Service Settings > Hosted Checkout Pages > Set Up.

3. Make the following configurations:

• AVS - No
• CSC - No
• Enable Secure Token - Yes

4. Don’t forget to Save Changes.

Once your PayPal merchant account is configured you can start setting up PayPal payment on your Magento 2 store.

The most popular PayPal payment method is PayPal Express Checkout. It is a complex solution so we decided to cover it in s separate article about PayPal Express Checkout Configuration in Magento. You should definitely explore it too.

But we're back on the other PayPal payment methods.

Configure PayPal Payments Advanced

Unlike PayPal  Express Payment, PayPal Payments Advanced allows customers to pay by credit or debit card while staying on your website. The checkout page is embedded into your checkout which allows even customers without PayPal account to complete orders.

PayPal is PCI-compliant and provides a secure payment getaway for all kinds of customers. All they have to do is press the Pay Now button, fill out the PayPal-hosted form or the Pay with PayPal buttons, and checkout with PayPal Express on PayPal site.

It also has required, basic and advanced settings and includes Paypal Express for your convenience.

To configure PayPal Payments Advanced in Magento 2:

1. Set up the Requires PayPal Settings.

• Enter the Email Associated with your PayPal Merchant Account.
• Set the partner ID in the Partner field, the user login name in Vendor, and the ID of the other User associated with your account if any.
• Enter the PayPal user Password.
• Enable Test Mode if you want to run test transactions in the sandbox. 

Note: use only credit card numbers suggested by PayPal while testing and don't forget to disable the test mode before going live.

• If you use a proxy server to connect Magento with PayPal enable the Proxy. In this case also set Proxy Host and Post.

2. Fill out the Basic Settings which are the same for every PayPal Payment option, PayPal Advanced in particular.

• Enter the Title that will be visible at checkout.
• Set the Sort Order that defines where PayPal Advanced payment method will be placed within other payment methods.
• Select the Payment Action.

Authorization — the order is approved, but the funds are put on hold. The merchant has to "capture" the funds.

Sale — the amount is withdrawn from the customer's account immediately.

3. Finally, cover the Advanced Settings.

• Choose the Payment Applicable From option for Specific or All Allowed countries.
• If you select the Specific Countries option, define those countries.
• Enable the Debug Mode to store payment system communication in a log file.
• Enable SSL verification to verify the host.
• Choose if you want to Require CVV Entry and if CVV Entry is Editable.
• Select whether you want to send an order email notification to a customer in the Send Email Confirmation field.
• Define the method used to exchange the transaction information with the PayPal service in the URL method for Cancel URL and Return URL.

GET — gets the information that is a result of the process.

POST — provides data block for data handling process e.g. information entered in the form

There are also the PayPal-required Settlement Report Settings and Frontend Experience you have to fill out.

4. Set up Settlement Report Settings.

• Enter the SFTP Login and Password.
• Enable Sandbox Mode to test the transactions before going live.
• Set the Custom Endpoint Hostname or IP Address and Custom Path where reports will be saved.
• Enable Automatic Fetching to generate reports by schedule.
• Define how often fetching will be performed in the Schedule field and set the Time of Day.

5. Configure the Frontend Experience section where you can customize the PayPal buttons, logo, and page styles.

• Select the PayPal Product Logo. 
• Define the Page Style.
• Enter the Header Image URL. It will appear on the upper left corner of the checkout page (max 750x90).
• Set the Header Background, Header Border, and Page Background Colors in six-character codes without [#].

• Customize Smart Buttons for Checkout, Product, Cart Pages, and Mini Cart
• Select the Label, Layout, Shape, and Color options.
• Disable Funding Options if necessary.

And that's it for the PayPal Payments Advanced and we move to the other solutions.

Configure PayPal Payments Pro

PayPal Payments Pro is another PayPal option available for you in Magento 2. It is a perfect combination of payment getaway, merchants account, and the fully-customized checkout experience.

It also includes the PayPal Express Checkout. However, unfortunately, it is only available in the US, UK, and Canada.

Once the order is placed with the PayPal Direct Payment — PayPal Payments Pro or PayPal Express Checkout, customers either stay on your website or are redirected to the checkout page.

To configure PayPal Payments Pro in Magento 2:

1. Find PayPal Pro under the Other PayPal Payment Solutions section.
2. Configure Required PayPal Settings for Payments Pro and Express Checkout. They are the same as for PayPal Advanced.

• Enter the Email Associated with PayPal Merchant Account which should match the email specified in your PayPal merchant account.
• Enter your PayPal Partner ID, Vendor as user login name, and User as the ID of the additional user your share PayPal account with.
• Enter your PayPal account Password.
• Enable Test Mode and Proxy if needed.

• Enable This Solution.
• Enable PayPal Credit if you want to. 
• Enable the Vault Enabled option in order to securely store customer payment/credit details. If you decide to store them, customers won’t have to reenter them each time they place the order.

3. Set up Basic PayPal Payment Pro Settings.

• Set the Title of the PayPal Pro that will be visible during checkout. Magento recommends setting it to Debit or Credit Card.
• Enter the Vault Title.
• Specify the Sort Order if you have multiple payment methods and select the Payment Action.
• Choose the Allowed Credit Card Types to accept payments on your store with.

4. Complete Advanced Settings of PayPal Pro.

• Select whether the Payment will be Applicable From All Allowed Countries or Specific Countries.
• Enable Debug Mode, SSL verification, and Require CVV Entry options.
• Enable Fraud Management Filters to detect fraudulent transactions and hold or flag risky payments.

As we’ve mentioned before, all PayPal payment methods have Settlement Reports and Frontend Experience Settings. You can check how to configure them by jumping to the corresponding section above. 

However, there is also a new setting we haven’t covered yet — CVV and AVS Settings.

It includes scenarios for those cases when Address Verification System detects a mismatch. In such cases, the transaction is rejected.

5. Configure CVV and AVS Settings:

• If you want to reject a transaction when the street doesn’t match enable AVS Street Does Not Match option.
• If you want to reject a transaction when a ZIP code doesn’t match, enable AVS Zip Does Not Match. 
• If you want to reject a transaction when the country identifier doesn’t match, enable International AVS Indicator Does Not Match. 
• If you want to reject a transaction when the CVV code doesn’t match, enable Card Security Code Does Not Match. 

Once you finish here, continue with the Settlement Reports, Frontend Experience, and Paypal Express Checkout Settings. 

Configure PayPal Payments Standard

This PayPal payment is available for all countries from the PayPal worldwide reference list which makes it the most versatile. It allows you to add both card and PayPal checkout buttons to your store.

Available cards include MasterCard, Visa, Discover, and American Express. Besides, you can even take payments through eBay and allow customers to pay from their PayPal accounts.

During payment, customers are redirected to PayPal to finalize the transaction.

In addition, it is important to note that you can’t use PayPal Payments Standard with any other PayPal solution simultaneously.

To configure PayPal Payments Standard in Magento 2:

1. Fill out the Required Settings.

• Specify Email Associated with PayPal Merchant Account. 
• Set the API Authentication Methods.

API Signature — this method is implemented easier and expires.

API Certificate — this method is more secure and expires after 3 years. 

• Fill out API Username, API Password, and API Signature or API Certificate, depending on the method you choose.
• Enable Sandbox Mode if you use credentials from a sandbox account. 

Note: only use credit card numbers recommended by PayPal to test the sandbox and disable it before going live.

• Enable the API Uses Proxy option. 

2. Configure Basic Settings by entering a Title, Sort Order, selecting the Payment Action, and enabling the Display on Product Details Page option.

3. Fill out PayPal Standard Advanced Settings.

• Make PayPal Payments Standard available from the shopping and mini carts, enable the Display on Shopping Cart option.
• Select whether the Payment will be Applicable From All Allowed Countries or only Specific ones.
• Continue with the same settings you’ve already seen in other PayPal methods: Debug Mode, SSL verification.
• Decide if you want to Transfer Cart Line Items in order to display the summary of each line item on the PayPal payments page.
• Enable the Transfer Shipping Options to include up to ten shipping options in the summary.

• Select the Shortcut Buttons Flavor.
• Decide whether to Enable PayPal Guest Checkout or Require Customer’s Billing Address.
• Choose the Billing Agreement Signup option if you want customers to be able to enter a billing agreement with your store. If you enable this option you will have to fill out additional fields. It is often considered as a separate PayPal payment method. We cover it more in the PayPal Express configuration guide.
• Decide whether to Skip Order Review Step, if you don't want your customers to review the order summary.

4. Fill out the Settlement Report and Frontend Experience Settings we've already covered.

Configure PayPal Payflow Pro

PayPal PayFlow is unlike any other PayPal payment. It is available for customers from the US, Canada, New Zealand, and Australia. It is a payment getaway that requires merchants to pay fixed monthly and transaction fees.

The distinctive part is — customers are not required to have PayPal accounts, they can pay without one, just by entering the credit card information. Customers are not redirected to PayPal to finalize the transaction. They stay on your website.

To configure Paflow Pro in Magento 2 you have to complete the same required, basic and advanced settings as in PayPal Payments Pro.

Configure PayPal Payflow Link

Another PayPal getaway payment option is PayPal Payflow Link. Same as the previous PayPal payment methods it doesn’t require customers to have a PayPal account to utilize it.

However, unlike any other payment method in this article, no customer credit card information is stored on your website. It all goes to PayPal. Moreover, it is available only for users in US and Canada.

All of the required, basic and advanced settings of the PayPal Payflow Link method are the same as in PayPal Payments Advanced. Jump to the corresponding section to configure them.

As you can see there is a variety of PayPal payment methods available in Magento 2. The more payment options you provide, the more likely it is they will find their preferred option to pay with. 

However, except for the number of available payment methods, the way they are presented matters too. Consider adding icons to payment methods in Magento 2 to make them more attractive and appealing to customers.

Have you already decided which PayPal solution to go with?