This article will guide merchants through enabling your Authorize.net account for PayPal.

Understanding PayPal

PayPal Express Checkout for Authorize.net enables you to offer PayPal as a payment option to your customers by incorporating it within your existing API implementation.

Requirements for PayPal with Authorize.net

• You must have a PayPal account. A Business or Premier PayPal account. A Business or Premier account enables you to become a merchant for whom PayPal collects money from buyers for goods or services. PayPal manages these transactions and charges you a small fee and a percentage of the amount collected from the buyer for each transaction.
• You must enable the service in the Merchant Interface.
• You must generate your Authorize.net API Login ID and Transaction Key.

How PayPal Transactions Work

PayPal Express Checkout for Authorize.net enables you to offer PayPal as a payment option to your customers by incorporating it within your existing Authorize.net API integrations, for more details below and in the Developer and Integration resources.

Cost of Using PayPal

Authorize.net does not charge any separate or additional fee for using PayPal, Please check on your PayPal account for any fees they may charge.

To see the fees on your Authorize.net account, follow the steps below:

1. Sign in to the Merchant Interface.
2. Select Account from the main toolbar.
3. Click on Merchant Profile in the main left side menu.
4. Click on Fees to the right of Payment Gateway in the Payment Methods section.

Enabling PayPal in the Merchant Interface

Account Owners can follow these steps: 

1. Sign in to the Merchant Interface.
2. Click Account from the main toolbar.
3. Click Digital Payment Solutions from the menu on the left.
4. Click Sign Up in the PayPal section.
5. Click Grant Permissions
6. You will be redirected to the PayPal site, which will guide you through the process of linking your PayPal account to your Authorize.net Account. On the PayPal page, you'll be prompted to enter the credentials for PayPal.
7. Once you have your account connected you may now integrate and use your PayPal account with your Authorize.net account. See the Developer and Integration resource for more details.

PayPal Express Transactions Flow

Successful Auth_Capture Transaction

1. You submit an Auth_Capture, specifying PayPal as the method along with a SuccessURL for successful transaction responses and a CancelURL for the rejected.
2. A transaction is created.
3. Authorize.Net submits a request to PayPal.
4. PayPal responds with PayerID and SecureAcceptanceURL, and echoes the transaction ID that Authorize.Net created in the refTransID field.
5. You display the SecureAcceptanceURL to the customer.
6. The customer logs into their PayPal account.
7. The customer approves or rejects the transaction.
8. On success, the response is returned to the SuccessURL with the PayerID.
9. You submit an Auth_Capture_Continue to Authorize.Net.
10. The transaction is authorized and funded at PayPal.
11. The transaction is marked as Captured/Pending Settlement.
12. The transaction settles after your cut-off time.

Successful Auth_Only Transaction

1. You submit an Auth_Only, specifying PayPal as the method along with a SuccessURL for successful transaction responses and a CancelURL for the rejected.
2. A transaction is created.
3. Authorize.Net submits a request to PayPal.
4. PayPal responds with PayerID and SecureAcceptanceURL, and echoes the transaction ID that Authorize.Net created in the refTransID field.
5. You display the SecureAcceptanceURL to the customer.
6. The customer logs into their PayPal account.
7. The customer approves or rejects the transaction.
8. On success, the response is returned to the SuccessURL with the PayerID.
9. You submit an Auth_Only_Continue to Authorize.Net, which initiates authorization at PayPal.
10. The transaction is authorized at PayPal.
11. You submit a Prior_Auth_Capture to Authorize.Net.
12. The transaction is funded at PayPal.
13. The transaction is marked as Captured/Pending Settlement.
14. The transaction settles after your cut-off time.

Cancel

On cancel, the response is sent to the CancelURL. The transaction remains in unsettled transaction in "Need Payer Consent" status for 48 hours. The transaction is marked as expired afterwards and settles at your cut-off time.

Voiding

Submitting a void request prior to capture submits an auth reversal to PayPal. A void can only be done on Auth_Only transactions. The transaction is marked as voided in the gateway account.

Get Transaction Details

The PayerID can be retrieved using the Get Details API.

Developer and Integration Resources:

• Developer Documentation
• API Reference Guide