PayPal

PayPal is a US-based global payment processor operating in over 200 countries and regions worldwide.

It supports card payments, PayPal account payments, digital wallets, and buy now pay later options for businesses of all sizes.

This guide walks you through connecting PayPal to PayLexer, configuring API credentials and webhooks, and testing transactions before going live.

Supported Features

• One-time payments

• Refunds

• Real-time payment status updates

• Multiple payment methods (PayPal account, cards, Venmo, Pay Later)

• Subscription billing (if enabled)

• Buyer and seller protection

Before You Start

Make sure you have:

• PayPal Business Account: Don't have an account? Sign up for PayPal Business →

• PayLexer Account: Required to configure the integration. Create your account →

• A website where you want to integrate

Looking for a different payment processor? View all supported gateways →

Configuring PayPal

You need a Client ID and Secret Key from PayPal for this integration.

Getting API Credentials

1. Log in to your PayPal Developer Dashboard

2. Select Sandbox or Live environment tab

3. Go to Apps & Credentials

4. Click Create App (if you haven't created one)

5. Enter your app name and click Create App

6. Copy your Client ID and Secret Key

Note: PayPal provides separate credentials for Sandbox (Test) and Live (Production) environments. Create apps in both environments to enable full testing.

Adding Credentials to PayLexer

1. Log in to your PayLexer dashboard

2. Navigate to Payment Gateways

3. Click on PayPal

4. Add the credentials you copied above

Understanding Live/Production and Sandbox Settings:

Here you will find settings for two environments:

• **Live / Production (Mandatory)**These credentials are used for real transactions. This field is required and cannot be empty, even when testing.

• **Test / Sandbox (Optional)**These credentials are used for testing only. No real money is processed.

How PayLexer Selects Credentials?

PayLexer automatically switches credentials based on your platform mode:

• Debug/Test mode ON → Test credentials are used

• Debug/Test mode OFF → Live credentials are used

You do not need to manually switch keys once both environments are saved.

1. Click Test Connection to verify your credentials

2. Click Save Configuration

Configuring Webhooks (Mandatory)

Webhooks enable real-time payment updates. While not required, they significantly improve reliability.

Benefits of Webhooks

• Instant payment status updates

• Automatic refund processing

• Real-time subscription changes

• Dispute and chargeback notifications

Setting up Webhooks

1. Log in to your PayPal Developer Dashboard

2. Go to Apps & Credentials

3. Select your app

4. Scroll down to Webhooks section

5. Click Add Webhook

6. Copy the Webhook URL from PayLexer

7. Paste it into Webhook URL field

8. Select the event types you want to receive

9. Click Save

10. Copy the Webhook ID

11. Paste it into PayLexer

12. Click Save Configuration

Note: PayPal uses signature verification automatically – no separate webhook secret needed.

Integrate PayPal to Your Website

If you have already added and configured your site, you can enable PayPal in your existing setup.

To add to your existing site:

1. Navigate to Websites

2. Click on the Edit Icon of your added website

3. Click on the checkbox to enable PayPal to the added website

If you haven't added a website yet, Continue to Add Your Website →

Troubleshooting

Best Practices

• Test in Sandbox before enabling Live mode

• Validate the first live transaction after switching

• Confirm webhooks are working

• Monitor the gateway dashboard for failed payments

• Keep API credentials secure

• Use separate Sandbox and Live credentials

• Ensure Debug/Test mode is enabled during testing, use only PayPal Sandbox accounts, and save Sandbox credentials in PayLexer – not just Live credentials

• Enable PayPal Seller Protection for eligible transactions

FAQs

Still Have Questions?

• PayLexer Support: Contact Support

• PayPal Support: PayPal Help Center