Study Guide
Table Of Contents
- PayPal Certified Developer Program Study Guide
- Contents
- List of Tables
- Online Payment Processing
- Internet Security and Fraud Prevention
- Why Every Business Should Be Concerned About Internet Fraud
- Liability for Internet Fraud
- Internet Fraud: What It Is and How It Happens
- Who Is at Risk for Online Fraud
- Reducing Exposure to Fraud
- What Banks and Card Associations Are Doing to Prevent Online Credit Card Fraud
- What PayPal Is Doing to Protect Your Business Against Fraud
- Disclosure and Compliance
- PayPal Fraud Protection Services
- Review Questions
- Getting Started With Account Setup
- API Credentials
- Name-Value Pair (NVP) API
- Express Checkout
- Direct Payment API
- Transactions
- Sandbox Testing
- Answers to Review Questions
- General Reference Information
- Glossary
- Index
Transactions
Payment Notification Integration
8
100 March 2008 PayPal Certified Developer Program Study Guide
Reporting
Paypal Reporting Tools provide the information necessary to effectively measure and manage
a business. With PayPal Reporting Tools, merchants can:
z Analyze revenue sources to better understand customers’ buying behaviors.
z Automate time-consuming bookkeeping tasks.
z Accurately settle and reconcile transactions.
The following reports are available:
z Monthly Account Statements — Every month, view a summary of all credits and debits
that affect the account balance.
z Merchant Sales Reports — Every week, receive a valuable analysis of revenue by sales
channel and currency.
z History Log — View an online record of received and sent payments.
z Downloadable Logs — Keep track of transaction history by downloading it into various
file formats (suitable for financial settlements).
For more information about PayPal reports, see the PayPal Reporting Tools website
(http://www.paypal.com/cgi-bin/webscr?cmd=p/xcl/rec/reports-intro-outside
).
Instant Payment Notification (IPN)
IPN provides immediate notification and confirmation of PayPal payments received. IPN
consists of three parts:
1. A customer issues payment from one of a number of processes (Website Payments
Standard FORMs, the Express Checkout APIs, MassPay, or a refund).
2. PayPal posts FORM variables to a URL specified by the merchant (either globally in the
Profile or on a per-transaction basis with the NOTIFYURL variable) that runs a program to
process the variables. The customer’s payment information (such as customer name and
payment amount) is included in the notification.
3. The server validates the notification to ensure it is legitimate.
Because credit-card and bank information are not transmitted in IPN, PayPal does not require
SSL to encrypt IPN transmissions.
Activating IPN
There are two ways to activate IPN:
z Include the NOTIFYURL variable in the DoDirectPayment or
DoExpressCheckoutPayment API call. Doing this activates IPN on a per-transaction
basis.
z In the merchant’s PayPal profile, under Selling Preferences, click Instant Payment
Notification Preferences, click Edit, click the checkbox and enter the URL of the program