The first time you charge a customer using PayPal, it will need to be via the API. After that, you can create a PayPal transaction from a Vault record, either via the Control Panel or the API. While PayPal transactions will go through a similar life cycle as other payment types, there are a few exceptions.

Storing in the Vault

If you are using our vaulted payment flow, PayPal customers will be prompted to enter their PayPal credentials and accept an agreement that will let you store their information in the Braintree Vault for future use. The customer can cancel or change the payment method associated with the agreement at any time in their Account Profile on PayPal.com. This agreement is associated with the PayPal Business Account credentials that you entered in the Control Panel. If you change which PayPal Business Account you use with Braintree, customers will have to re-enter their PayPal credentials and accept a new agreement.

Depending on your specific integration, you may need to pass additional information with individual PayPal transactions created from the Vault via the API. Learn more about integration options when accepting PayPal.

New Vault flow

Our new Vault flow offers an enhanced user experience for your customers - and incorporates new features like PayPal One Touch™, funding instrument selector, and two-factor authentication support. This setup is available for merchants domiciled in all of our supported countries and for customers in over 140 countries.

Your customers will immediately see the new flow after it's been enabled, and a newly created purchase agreement will be available on the Preapproved Payments page in their PayPal account settings.

For information on how to configure the new Vault flow, take a look at our PayPal Vault developer guide.

Existing Vault records

When you switch to the new Vault flow, you'll be able to process your pre-existing vaulted PayPal payment methods as normal.

Authorization

The simplest approach for any transaction is to authorize and submit for settlement at the same time. However, Braintree and PayPal do support separate authorization and capture, which can be helpful if you have a delayed order fulfillment process and prefer to wait to capture funds until you're ready to provide your goods or services.

PayPal will not allow you to capture funds if your customer's account is restricted or locked, or if your account has a high restriction level. Also note: You cannot settle more than the authorized amount unless your industry and processor support settlement adjustment (settling a certain percentage over the authorized amount); contact our Accounts team for details.

You can attempt to capture funds for up to 29 days after a successful authorization, but we recommend capturing sooner rather than later – PayPal can't ensure that 100% of the authorized funds will be available during that entire 29-day period.

For more details on PayPal authorizations, see PayPal's article on Authorization & Capture.

Settlement

We settle transactions for most payment types in batches, but we capture PayPal funds immediately when you submit each transaction for settlement. This allows us to give you instant feedback on whether a settlement was successful, so you can confidently ship your goods or provide your services. If the settlement isn’t successful, you’ll receive a declined or pending response. If it’s pending, don’t worry—we’ll contact you to sort it out.

Refunds and voids

Just like other payment types, you can issue voids and full or partial refunds for PayPal transactions. We recommend that you do this in the Control Panel or via the Braintree API to ensure the transaction status is accurate in both your PayPal console and the Braintree Control Panel.

PayPal requires that refunds are issued within 180 days of the sale.

Disputes

Disputed PayPal transactions are managed within PayPal’s Resolution Center, which can be found in your PayPal console. From there, you can:

  • Respond to a transaction problem and communicate with your customer
  • Resolve an account limitation
  • Report unauthorized account activity
  • Ask PayPal to investigate a transaction problem

Seller Protection

If you sell shipped goods, as long as you pass a properly-formatted shipping address with the transaction and meet PayPal's Seller Protection requirements, you’ll be protected from certain types of chargebacks. Learn more about Seller Protection and check out a detailed FAQ.

Still Have Questions?

If you can’t find an answer, give us a call at 877.434.2894 or contact our Support team


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