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 Configuring PayPal Support
PayPal is a popular merchant services provider. Ubersmith can accept and automatically apply payments received by your PayPal account.

PayPal IPN Configuration

Signing up for a PayPal account is outside of the scope of this document, but more information is available at:

Your Ubersmith installation uses PayPal's Instant Payment Notification (IPN) system to stay informed of activity on your PayPal account. More information on IPN in general is available here.


Instant Payment Notification (IPN) allows you to automate certain aspects of your business by posting transaction details to your server whenever you receive a PayPal payment or whenever a status change occurs on a transaction. When used with a credit card or Express Checkout transactions, IPN is not useful to get the status of a payment, but only to get asynchronous notification such as an eCheck clearing or a chargeback.

There are two steps required to enable IPN support. One is performed from within your PayPal account at

  1. Log in to your Premier or Business PayPal account.
  2. Click Profile.
  3. Click My selling tools.
  4. Under the Getting paid and managing my risk section:
  5. Click Update in the section labeled Instant payment notifications.
  6. Click Edit Settings.
  7. Enter the URL at which you would like to receive IPN posts.

For Ubersmith, if your instance was named '', the URL you will enter will be in the following format:

The second step is the configuration within the 'setup & admin' section of your Ubersmith instance. Go to:

setup & admin -> Client Manager -> Payment Processing Options

Within this page, you will see a section marked 'PayPal Configuration'. There are three fields to fill out:

PayPal Email Address

The email address associated with your PayPal account; i.e. where clients will send PayPal payments.

PayPal Currency

The currency you expect to receive payments in.

PayPal Notification address

An address where you can receive notifications about payments that Ubersmith is not able to match to an existing invoice.

With these settings in place, you are now ready to accept payments via PayPal!

Automatic Application of Payments

Payments can only be automatically applied if Ubersmith is able to match up the incoming email address of the payment with an existing client in Ubersmith. Further, the payment can only be applied to an invoice if the amount of the payment exactly matches that of the invoice. If Ubersmith cannot match the payment to the invoice, it will create an account credit for the client in the amount of the payment, and you will be notified at the 'PayPal Notification Address' that the automatic application of the payment did not succeed.


When processing a refund for a Paypal payment through Ubersmith, the user will be presented with the option to automatically reverse the payment back to the client or to mark it as a manual refund only.  Reversing the payment will make Ubersmith connect to Paypal and directly refund the payment sending the funds back to the client immediately.  Marking a manual refund will reverse the payment in Ubersmith only.  Any funds to be returned to the client after that would need to be done manually through Paypal's site. 

If no option to automatically refund the payment through Paypal is presented to the user the payment will only be reversed in Ubersmith and any necessary funds to be returned will need to be done manually.

Article Details
Article ID: 20
Created On: 10 Sep 2008 10:47 AM

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