PayPal - Express Checkout

PayPal - Express Checkout

MasterCard Payment Gateway Services Merchants can now easily create an express payment lane for Customers by adding PayPal to their checkouts via their existing integration with MasterCard Payment Gateway Services.

PayPal


PayPal, a global leader in online payments, has 157 million active account holders worldwide and is now one of the most common online payment methods. It offers any Customer with an email address a quick, easy and convenient method to pay for goods, using stored PayPal payment information and the PayPal Express Checkout facility.

As you would expect from MasterCard Payment Gateway Services, the integration of PayPal as an additional payment option has been designed to extend the transaction options and payment processing speed offered to Merchants.

Express Checkout Facility


Customers can pay easily, quickly, and securely in as few as three clicks. The Customer initiates and approves PayPal payments earlier in the checkout process, enabling shipping and billing information to be pulled from PayPal to the Merchant's website. This saves the Customer both time and hassle and in turn potentially leads to a higher sales conversion rate for the Merchant's business.

To find out more about PayPal Express Checkout click here.

Enable PayPal through the existing MasterCard Payment Gateway Services API


MasterCard Payment Gateway Services has worked with PayPal to enable the payment option in much the same way as other payment options operate through the MasterCard Payment Gateway Services API. The integration is within the standard UK platform (EDI) and is, for most Merchants, a relatively straightforward extension of their existing connection to MasterCard Payment Gateway Services. There is minimal testing once the payment authorisation call extension has been made, enabling merchants to move swiftly from application to processing payments.

PayPal Merchant Account


In order to accept PayPal payments, Merchants will require a PayPal Merchant Account. MasterCard Payment Gateway Services has worked with PayPal to provide MasterCard Payment Gateway Services Merchants with a streamlined application process. The Merchant rates and charges from PayPal for accepting PayPal payments are published on the PayPal website

To find out how to sign up for a PayPal Merchant Account click here.

Key Features


  • Through PayPal, Merchants are able to receive payments online from a comprehensive range of major and localised market debit cards, credit cards and bank transfers.
  • All PayPal Express Checkout transactions are PCI DSS compliant.
  • PayPal transactional information is available through the consolidated reporting tool used for all MasterCard Payment Gateway Services payment mechanisms.
  • Integration to PayPal through the single MasterCard Payment Gateway Services API provides consistent and straightforward integration methods and maintenance.
  • A 24/7 test server places no reliance on third parties for testing and integration.
  • PayPal resides alongside all products and services available in the MasterCard Payment Gateway Services range on a proven and resilient payments platform.

Key Benefits


  • Merchants are able to leverage the growing network of millions of PayPal account holders. An express lane can be used to penetrate the existing 19 million active UK PayPal account holders and over 157 million active around the globe.
  • Merchants can increase revenue by opening a new sales channel. Amongst UK online shoppers, more than one in two are PayPal Customers and 35% say they prefer to use PayPal as their online payment method of choice.
  • Merchants will gain access to new and more local Customers and international payment methods by entering new territories with ease (203 markets and up to 26 currencies), where credit card penetration is low and acquiring facilities are difficult or impossible.
  • Express Checkout, through MasterCard Payment Gateway Services, allows Merchants to remain in control of their checkout, with tight integration to their website and order management process.
  • With PayPal Express Checkout, Merchants will convert more browsers into buying Customers and reduce shopping cart abandonment, with buyer conversion averaging 72%**.
  • Easy integration through one single point of integration means PayPal can easily be added to a Merchant's existing MasterCard Payment Gateway Services payment page.

*Based on a 2006 survey of 200+ merchants already accepting credit cards online who then added PayPal

**Based on analysis conducted on Top 100 PayPal merchants in UK and US combined (in terms of volume) using Express Checkout.

PayPal Express Checkout -Overview


The PayPal Express Checkout allows you to authenticate a PayPal user and settle funds on their PayPal account in realtime. Successful payments can be refunded without the need to store PayPal user information. The service can be seamlessly integrated into your systems, enabling your customers and Customer Service teams to experience fast and efficient processing and management of transactions.

The default timeline setting for PayPal refunds is up to 60 days. In order to change default settings the merchant is advised to contact their Account Manager.

When using this service, there are three stages to the payment cycle:

  • re-direct customer to PayPal
  • authorisation of payment
  • settlement of funds

Re-direction of Customer


Once the payer's details have been collected and sent to MasterCard Payment Gateway Services, they are immediately sent to PayPal. This information is used by PayPal to generate a token, which is passed back to your sysem by MasterCard Payment Gateway Services. Your systems use this token to re-direct the payer to PayPal.

Authorisation


The payer confirms the payment and is re-directed back to your website.

Settlement of funds


Once the payer is re-directed back to your website, your system sends a request to the DPG which returns details about the customer verification. If these details are in order, a further request is sent to the DPG, which results in the funds being automatically transferred from the Payer's account into your PayPal merchant account.

Requirements


Before you can go live with this Service, you will need the following:

  • A PayPal Merchant account
  • An account with MasterCard Payment Gateway Services configured for PayPal

Complimentary Services


The following services are complimentary to the PayPal Express Checkout Service:

PayPal Auth Capture - enables the settlement of funds to be delayed until shipment

PayPal Do Reference - enables repeat payments to be performed

Transaction Processing Models


Using this Service the payment flow for each customer needs to be completed within three hours.

Situations in which this could be implemented include:

  • Instant access services - such as software downloads
  • Ticketing systems - such as airline and train reservation services

The transaction types that can be used with this Service are:

Transaction Type

Effect

set_express_checkout

Initiates transaction

get_express_checkout_details

Obtains results of customer verification process

do_express_checkout_payment

Transfers funds from PayPal User to PayPal Merchant Account

txn_refund

Returns funds from the Merchants PayPal account back to the Users PayPal account

Performing Transactions


Each transaction type requires specific information to be provided. In addition to those listed, each requires a client and password - these are security details which identify your account.

Set Express Checkout


To initiate the payment flow, the following details are required:

  • unique reference number generated by your system - to allow the transactions to be distinguished from each other
  • the value and currency of the transaction
  • the transaction type of set_express_checkout
  • a return url. Once your customer has entered their details PayPal will re-direct them back to this URL
  • a cancel url. The user will be re-directed by PayPal to this URL if they cancel the payment

In addition to these there are also various optional fields which can be submitted if required. These are outlined in the Developers Guide.

Get Express Checkout Details


To obtain details of the payer, the following details should be provided:

  • the MasterCard Payment Gateway Services reference of the original set_express_checkout transaction
  • method must be get_express_checkout_details
  • unique reference number generated by your system - to allow the transactions to be distinguished from each other

Do Express Checkout Payment


To transfer funds from your customers PayPal account, the following information is required:

  • the MasterCard Payment Gateway Services reference of the original set_express_checkout transaction
  • method must be do_express_checkout_payment
  • the value and currency of the transaction

In addition to these, there are also various optional fields which can be submitted. These include:

  • shipping address details
  • airline and flight details
  • details of individual items within the order

Refunding Transactions


To txn_refund a transaction, information from the result of the original transaction is required, in addition to the transaction type:

  • the DataCash reference –
    - either the set_express_checkout or do_express_checkout for “sale” transactions
    - do_capture for “order” transactions
    - do_reference_transaction for subsequent payments from a billing agreement
  • method must be txn_refund

Transactions are normally refunded for the full value of the original transaction. If you wish to refund a lower value, this can be done by specifying the amount in the txn_refund request. Each transaction can be refunded several times, provided the total refunded does not exceed the value of the original.

The default timeline setting for PayPal refunds is up to 60 days. In order to change default settings the merchant is advised to contact their Account Manager.

Refunds in excess of 100% are now supported. In addition to the txn_refund transaction type, the following information is required:

  • the original DataCash reference –
    - either the set_express_checkout or do_express_checkout for “sale” transactions
    - do_capture for “order” transactions
    - do_reference_transaction for subsequent payments from a billing agreement
  • refund_type element populated with “other”

Eligibility for this feature will be controlled by PayPal but will explicitly not be available to gambling clients. In order to enable this feature, please consult your PayPal Account Manager to request enablement.

Response Codes


When using the PayPal Express Checkout Service, there are two basic responses for the completed payment flow:

  • Accepted
  • Error

Accepted Transactions


An accepted response indicates that the PayPal payment flow was successful and the money has been transfered.

These payments will have a PayPal ACK response of one of:

  • Success
  • SuccessWithWarnings

If a SuccessWithWarnings response is received, we advise you check for the additional warning information returned in the response.

Once a transaction is accepted, your system can complete the normal ordering process.

Error Messages


 

There are various errors which could be generated for this Service.

In addition to errors generated by the DPG, there are also various errors which can be generated by PayPal. For payments with a PayPal error, the PayPal ACK response will be one of:

  • Warning
  • Failure
  • FailureWithWarning
  • Error

In the event of one of these PayPal errors occuring, the DPG will return full details of the errors to your system.

A complete list of Response Codes is available in the Developers Area. TheSupport Centre also contains extensive examples for most error codes. Illustrations are given to demonstrate how they would appear in both Reporting and an XML Response. Suggestions are also given to help you prevent them from occurring.

Reporting


The transactions are detailed in the PayPal section of the MasterCard Payment Gateway Services Reporting system. There are three main pages:

  • Summary - gives a summary of the transactions
  • List - shows specific details of the transactions
  • Details - shows full details of each transaction