PayPal Pay: Simplifying Online Payments

1. Introduction

Paypal Pay is an online payment service. When it comes to technology, customers want an easier, faster and safer transaction for purchasing physical and digital goods. Good news! Look no further! With the use of Paypal Pay option, you can now authorize your payments through a touch of a button. There is no need to repeatedly type in your credit or debit card information in order to make purchases. In this tutorial, we will show you how you can integrate Paypal using the PHP SDK so that users will have the option to pay with their payment methods which they have linked to their Paypal account. First, we will go through the basic setup to create the smart payment buttons and to execute the transaction. Then, we will go through how to allow a payment to be captured through authorization, how to capture the payment and how to refund the captured payment. Capturing a payment means that you are charging the user for the item that they have purchased. First of all, the customer has to mark the item as ‘shipped’ and associate the final sale details with the capture by providing the tracking number for shipping and notifying the buyer. The buyer will receive an email with the details of shipping and the email will contain a link to enable the buyer to know the item has been shipped. Last of all, would be to execute the API call to capture the payment. So, as a developer, we need to process the item and completing the charge for the customer. ypos all_title: Paypal Pay Intro and Integration with PHP Simple Example →

1.1. What is PayPal Pay?

PayPal Pay is a technology that allows users to pay for goods and services online by using a credit or debit card and without even having to share card numbers with merchants. When someone wants to pay with PayPal Pay in an online store, they will be redirected to an external website (PayPal Pay) where it is possible to sign in or sign up. The service is based on the idea of a virtual wallet. In a virtual wallet, each user’s information is stored, ensuring the card and personal details are protected and so this helps prevent fraud. When a transaction is made, the details of what was bought and where are sent with a token created together with other security details to the server where the payment is going to be authorized. This token is a small object existing in a computer system with reference to the specific data it is to protect, in this case, the next transaction data and the card details. It is used to improve the overall security of the transaction. The server knows this is a valid token and the customer has been verified by PayPal Pay because they have sent all the security information established between the merchant, the customer, and PayPal Pay. This is then sent back to the customers’ computers and to the company’s servers along with the payment. Through various security checks, the transaction can be authorized and the payment will be made and sent to the merchant. During all of this process, the card details have never been made available to the merchant, and PayPal Pay oversees everything to make sure all data remains secure.

1.2. Benefits of using PayPal Pay

Thirdly, PayPal Pay is, by its nature, a very quick method of completing a payment. This quickness is present both in the process of making a payment and also in the ability to access funds held within a PayPal account. All users need to do is log in with a secure password, and shipment details are remembered from previous purchases, making ordering products with time-sensitive offers very simple. Also, many companies that use PayPal as a form of purchase are covered in a “one-click” purchase agreement; this means that after the first payment has been sent, only “buy now” buttons are pressed to repeat purchases without the need to re-enter login details all over again. For customers, the accessing of internal account funds is instant after either using the bank account transfer option or uploading funds via a credit or debit card. This negates the issue of delays when adding to a PayPal balance, which can be experienced with the direct debit to bank account method that other money transferring services boast. So, instantaneous access to one’s own money and effortless speed when completing payments sets PayPal Pay at a much higher standard of operation compared to its rivals.

Secondly, PayPal Pay is able to send payments with all values of money to 202 countries for thirty-three of those currencies. This allows for an unrivaled level of flexibility across a global scale when using e-commerce platforms; when it comes to withdrawals and the direct deposits of funds from within a PayPal account, there are options in almost every single country in the world that has a banking system to suit the user’s preference. This level of international connectivity is highly useful to those residing in the United Kingdom or the United States, for example, who have connections abroad, be that friends, family, or international business and trade links.

One of the major advantages of using PayPal Pay is the higher level of security that PayPal offers to its customers. By using PayPal for online payments, the only information you need to provide is a securely stored email address and a password. This is in stark contrast to the information that is required when using a credit or debit card to make an online payment, which includes the sixteen-digit card number, the expiry date, and the security code, usually a total of twenty digits. If this card information was to fall into the wrong hands, it could be catastrophically misused. In stark contrast, even if a criminal was able to access a PayPal account and transfer money from it, due to PayPal’s “Protecting Unauthorised Transactions” policy, the customer would be refunded in full.

2. How PayPal Pay Works

Just as you would expect with any new innovation, setting up a PayPal Pay account is incredibly quick and simple. With a few clicks or taps, you can quickly be on your way to making seamless payments online. Firstly, head over to the official PayPal website if you’re on a computer, or download the PayPal app on your phone or tablet if you don’t have it already. Once you’re on the website or have the app open, click or tap the option to sign up; you’ll then be asked to input a few personal details like your name, address, date of birth and a contact number. After that, all that’s required is an email address which will become your login ID and a password and you’re all set! When you’re logging into the account, make sure to enter the email address you’ve used to be recognised as a user. From then on, each time you access your online PayPal account, you’ll just need to input the email and password and that’s it! Now, perhaps the most important requirement is making sure that you’ve got at least one payment method linked with your PayPal account. PayPal actually gives you a good amount of control and freedom in deciding how you’d like to make and manage payments. For instance, you could choose to link a credit or debit card and enter the details of that card into your PayPal account; alternatively, linking your PayPal with an existing bank account allows you to make instant bank transfers, otherwise known as e-cheques. Whichever method or methods you choose, the process of providing and saving the required payment details is usually very straightforward. On the app for instance, all you’d need to do is go to ‘Settings & Privacy’, click ‘Account Settings’, choose ‘Manage’, click ‘Link Payment’, and then ‘Save’ once the card details are entered. On the other hand, on the website, selecting ‘Wallet’ and then ‘Link a card’ provides an interface for inputting the relevant information. Any payment methods linked to your account will be shown under the ‘Wallet’ tab on both the app and the website. In addition, you can also set one of the linked cards as your preferred payment method in order to make the processing of payments more efficient. All that needs to be done is to click or tap ‘Make Primary’ when you’re viewing the card details.

2.1. Setting up a PayPal account

On one hand, consider our recommendation and do not create an account through any software. Proceed directly to the PayPal website because a personal account can be made online easily in a matter of minutes. But if you are wondering how to set up a business PayPal account, it might take a bit longer. On your screen, you will see an option to sign up, so simply select that. If you choose Microsoft Edge or something similar in the form of a browser (I use Google Chrome), it even says how easy it is to create an account greater than the age of PayPal – 3 simple steps. Next, choose what type of account you want. A personal account would be set up if it is for your use and not, for example, a business. Near the top right, there is a button titled “sign up,” which starts the registration process. Afterwards, a confirmation email will be sent to the email address that was provided when setting up the account. Finally, click the verification email and sign in, and the setup is complete. It is suggested that you add more information so you can start using PayPal for payments straight away. By visiting the “my profile” section, other information, such as card details and email addresses, can be submitted too, allowing further features of PayPal usage to be enabled. All of this also works in the mobile application – in fact, there is even a tab for adding card and bank information to your PayPal, which is quick and simple. On the other hand, at any moment in the next few years, if you want to verify your card at the bank, it can be done alternatively by typing in the unique digits on the front and back of the card.

2.2. Linking your payment methods

After you have set up your PayPal account and you are signed in, the system will prompt you to link your card to your PayPal account. To do this, you will simply have to click on the ‘Link a card’ button that you will find on the ‘Link a new payment method’ section of your account. Once you have clicked on it, the system will ask you to provide some very basic details. At first, you will be asked to simply provide the 16-digit card number, the expiry date, and the 3-digit CVC number that is on the back of your card. Once you have entered these details, you will then be asked for the card type (Visa, MasterCard, Maestro, Discover, etc.) and some very basic personal information, including your name and your home address. Once you have done this, the system will take a few minutes at most to verify the information. After it successfully completes this process, your card will be linked with your PayPal account and it will be ready to use. Also, bear in mind that at any point you can select what your primary payment method is going to be when you make a payment by simply going to the ‘Manage your payment methods’ section and making the appropriate selection. By linking your card to your PayPal account, it will allow you the freedom and flexibility to pay using either your card or your PayPal balance, depending on which will be more appropriate for your purchase. This is because, in your account settings, you also have the flexibility to select what your primary payment method is going to be, which then allows you to seamlessly make a payment without any further selections. This is ideal for balancing and managing money across different cards and accounts.

2.3. Making payments with PayPal Pay

PayPal Pay removes the need to enter your financial information each time you shop. Instead, your account is identified through a personalised payment code and your purchases are made with your existing PayPal balance, bank account or debit card on file. When using PayPal Pay, users can complete a payment in three steps. As with any modern digital payment method, you provide sellers with a better degree of certainty when you pay with PayPal Pay. Firstly, where you are choosing to make a PayPal payment, the sellers are dependent on PayPal to actually make and receive the payment. PayPal Pay follows a similar flow to many contactless payment methods by utilising a token and a “first factor” authentication system. The payment begins by the user needing to select the payment method in the app. This may be a PayPal balance, debit card or alternative method. The app then requests a user to “begin payment” and the device will show a specific one-time token on the screen. This is when the payment code is verified against the transaction and the payment is validated by PayPal. This is what makes the payment further secure because the user’s payment code is unique and is also being only used once to validate the transaction. By providing this information, it is then taken by the sellers for the purposes of facilitating the payment and making the next day deposit and it’s from that deposit that the funds will be received by the sellers.

3. Security and Protection

Ongoing protection: If a client pays with PayPal, their purchase is covered with the aid of PayPal Buyer Protection. If the object does not arrive or is considerably different than described, PayPal will help purchasers in getting a full refund. Sellers are also covered with Seller Protection, for eligible sales. PayPal displays the transactions 24/7, which should give both clients and sellers greater peace of mind. It offers a guide on a top-of-the-line solution 365 days a year, to help with any queries. The software is optimized with fraud protection that works seamlessly in the background. Also, PayPal provides an automatic fraud screening protection and proprietary fraud models that are tailor-made for all types of businesses. Besides the business type, fraud measures ensure that the clients and businesses are protected. PayPal is also rated as a top-tier service and is implemented according to guidelines from auditors, security companies, and industry regulators. This includes compliance with standards such as Payment Card Industry (PCI) and Data Security Standard, possibly the most stringent payment card information security measures. Every single transaction is carefully monitored and managed. For clients, information cannot be viewed unless logged into the account. When a payment is made, the sellers do not receive any financial data, such as bank account or credit card numbers. As for buyers, all of their security details are stored on secure servers. Through the use of the latest encryption techniques, they can prevent the data from being intercepted.

3.1. PayPal’s fraud prevention measures

PayPal uses industry-leading technology to keep your information safe. We always encrypt your financial information and do regular checks of our computer systems to make sure that they’re secure. PayPal created a dedicated team of leading online security experts whose job it is to keep up with the latest online security measures and technologies. They’ve developed sophisticated fraud-risk models which help to detect unusual account behaviour and stop fraud at its inception. We also have a team of specialists who focus specifically on preventing fraudulent transactions. These professionals use the latest industry tools and techniques to seek out and investigate any suspicious activity. Last, we use powerful software packages and technology, such as devices that collect and instantly send information. These are used to help us verify that a transaction is genuine, so PayPal can stop fraudulent payments before they’re even made. Fraud protection is very important, and we take it very seriously. PayPal constantly reviews all potential risks and updates our fraud-prevention measures to take into account changes in the legal and technological environment. By choosing PayPal, not only can you use simple payment options like pay after delivery, you can also take advantage of our world-class fraud prevention measures to keep your financial information safe.

3.2. Buyer and seller protection

PayPal offers a high level of buyer and seller protection. This protection is offered as standard and at no extra cost to the user. If the item that you’ve bought online doesn’t arrive or doesn’t match the seller’s description, PayPal’s Buyer Protection allows you to open a dispute and request a full refund. You must do this within 180 days of paying. It’s a similar story if you make an in-store purchase using PayPal and that too doesn’t match its description. If you’re unhappy with the purchase then just return the item to the seller within the shorter of either 30 days from the date that you received it or the end of any return policy, and tell them that you want to return the item. Providing the item meets the requirements then, under the Seller Protection program, the eligible transaction is protected from chargebacks. Also, Seller Protection covers sellers from claims, chargebacks or reversals for the full amount of the eligible payment, instead of just the profitable amount from the transaction. To be eligible, the seller must have shipped the item to the address on the ‘Transaction Details’ page, show proof of shipment or delivery in case the buyer opens a dispute, receive payment through PayPal’s ‘PayPal Checkout’ option, or bill the buyer. However, it’s worth bearing in mind that PayPal protection in the UK, Australia and so on might differ slightly – it’s best to consult the PayPal user agreement for that country. Buyer & Seller Protection isn’t just beneficial to the consumer – it can help to maintain trust in sellers and give added reassurance to new potential customers too. By offering strong purchase protection promises, sellers are more likely to attract sales and, hopefully, generate repeat custom.

3.3. How PayPal keeps your financial information secure

When dealing with online transactions, the main thing to worry about is having your financial information compromised. This is why all reputable payment processors will use some form of secure connection to enable the transfer of data between our devices and their servers. PayPal goes a step further because they act as more than just a payment processor. They will need to hold enough information about you to handle transactions with multiple vendors – think about how much time it would take to type every shipping address into an order form! That means your home address, contact information and, of course, card and bank details are stored on the secure PayPal servers. To keep this information safe, PayPal utilized encryption, which is essentially the scrambling of information into an unreadable format which can only be decoded using a special key. This means that even if data is intercepted it would be meaningless to anyone trying to steal it. In fact, if anyone managed to access the data which is transmitted over PayPal payment pages, servers or mobile applications they wouldn’t be able to do anything with it. This is because any payment instruments (like a card number or bank details) are encrypted and PayPal are specially certified to an advanced level by the Payment Card Industry Data Security Standards or PCI-DSS for short. This protects any kind of card payment any merchant provides – so when you make a payment, your details are protected by PayPal using the highest grade of encryption that’s generally available.

4. Additional Features and Services

Overall, PayPal Pay is an asset for freelance businesses, small start-ups and leisure activities; giving options like paying with card or by accessing their PayPal funds gives consumers the flexibility they want to have. Every transaction is secure and there are no monthly fees, which makes it an efficient way to handle payments today.

When you use PayPal Pay to take payment for goods and services, the money will usually appear in your PayPal account in minutes. Upcoming deposits due to be made once you complete a transaction are also shown in your Activity. However, it is essential to note that your funds are subject to a review and could be delayed or held. Also, the speed of the deposit into your bank account depends on your bank’s schedule and policy. Finally, don’t forget to periodically update your PayPal app as new features might become available and essential for the proper functioning of the app.

PayPal Pay is the faster and easier way to pay in-store on an iOS device. Simply open the Terminal app and hit “Take Payment”. Customers then confirm the amount shown on your iPhone screen and are prompted to scan their fingerprint or enter their PIN on their phone to complete the transaction. Android users may be interested to know they can take advantage of PayPal’s NFC functionality and link a card to their account to use PayPal Pay. PayPal Pay on Wear OS is currently available for customers in Australia, Hong Kong, Singapore, the Republic of Ireland and the UK and supports both the digital version of the PayPal Cash Card and the physical Mastercard so long as the card is eligible to pay in-store.

Simply put, PayPal One Touch allows faster checkout whether you’re buying the latest game on your computer or ordering a Starbucks drink from your phone. Once you activate One Touch, just look for the “Pay with PayPal” button on a website or app and check out in as few as one touch, without needing to type in your username, password, or financial details, where applicable. PayPal One Touch is now also available for those businesses selling in the Republic of Ireland and our global expansion is ongoing, providing those who use PayPal to purchase online or with mobile the same easy, convenient and secure way to pay for in-store purchases and services as well.

4.1. PayPal One Touch for faster payments

When a user is signed into their account using PayPal One Touch, they keep enjoying the protection that PayPal offers on all the eligible purchases with the added benefit of an extra layer of protection on the financial information hence reducing the risk of falling into the hands of scam artists. Authorizing PayPal to store personal and financial information in the form of a cookie also means that with PayPal One Touch, a user may not need to keep entering the password and other financial details on all the sites that he shops using PayPal for payments. This is because the person making the payment is effectively logging into his account in the background by simply clicking the ‘Pay with PayPal’ button. The user must, however, remember that security changes and the user may be requested to log back in again for added security at some point.

One beneficial feature that comes with using PayPal is that from the time a user initially signs up and they make their first payment, they are generally signed into their account and they won’t need to repeat the process over and over each time they use the service to make a payment. This feature, known as PayPal One Touch, enables a user to stay permanently signed into their PayPal account. This means that users can complete payments faster and with relative ease. For a user to remain permanently signed in, they need to ensure that they use the same browser and the same device each time they make payments. Also, the user can choose to sign out of his account at any time.

4.2. PayPal Pay in-store and on mobile apps

Another feature and service available to the users of PayPal is the PayPal Pay in-store feature. This feature allows you to use the app to make payments in a store, in a similar fashion to how you would use a contactless payment card. You can also make payments on your favorite mobile apps using this feature. In order to use this feature, you need to first save your card to your digital wallet, as outlined in the previous section. Then, when you wish to make a payment, you can select the card and PayPal will generate a unique payment code. This code will then be used to process your payment; the code will typically refresh every 60 seconds. This is great for security as it means that even if someone was able to intercept and record the code, it would no longer be valid after 60 seconds. You can also use the feature to store and access loyalty cards and coupons. When you make a payment using the PayPal Pay in-store feature and a saved loyalty card or coupon becomes applicable, the option to apply the coupon or loyalty card will appear on the checkout screen. PayPal Pay can be used with or without an active internet connection. However, it is recommended that you have an internet connection when you make a payment in order to ensure that the payment is processed more quickly and to ensure that PayPal is able to generate a new payment code if needed. If you do not have an active internet connection, you will be prompted to connect to the internet to request a new code, so it is possible to make payments without a connection. Also, if you have an internet connection when you create a payment code and then lose your connection, the code will remain valid for up to 24 hours. This means that if you lose your connection at any point before submitting your payment, the code will still be valid when you reconnect and you can continue to make your payment.

4.3. PayPal Pay integration for businesses

When you want to use PayPal Pay for your business, the time it takes to set up the service really varies depending on the unique requirements of your particular business. First, you need to have a PayPal business account. This is because PayPal Pay is a service that’s specifically tailored for businesses. N.B.: You also need to have a PayPal business debit card and maintain good standing with PayPal for PayPal Pay to work. However, this information may become outdated so always check the latest information on PayPal’s own website. When I set up PayPal Pay for my web design company, I was able to prepare everything in half an hour – that includes the time it took to apply for the PayPal business debit card. The process involves selecting your preferred connected app from the PayPal developer database and filling in a simple form with your PayPal business account details. After you hire someone to install the plugin on your website, integrating PayPal Pay with your own website should be very quick and simple. However, it’s been recently brought to my attention that some other businesses I’ve had meetings with have been advised that integrating and installing the PayPal Pay plugin or any software updates their web developers have had applying is time-consuming. In my experience, if you have given your developers ‘permissions for API’ and have selected the correct software in the settings section of PayPal Pay, the actual software side of the integration can be done in minutes. I had to do a fair bit of screen hopping and task choice to get PayPal orders appearing on my phone. I have the PayPal business app and the regular PayPal app but ultimately I found that you need to have the PayPal business app on your phone to be able to get the QR code and app integration to work. My understanding is if you have a lot of orders coming through on a till point you could potentially have the QR code there too – I must say, I’ve never tried that but I’d be interested to hear from other businesses what their set up is / any theories on that front. Hope you find this little guide useful!