PayPal
From Shopify Wiki
PayPal is the safer, easier way to pay and get paid online. The service allows anyone to pay in any way they prefer, including through credit cards, bank accounts, buyer credit or account balances, without sharing financial information.
PayPal has quickly become a global leader in online payment solutions with more than 153 million accounts worldwide. Available in 190 markets and 17 currencies around the world, PayPal enables global ecommerce by making payments possible across different locations, currencies, and languages.
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Paypal and Shopify
Because of paypals global availability it is one of the most commonly used gateways on the Shopify platform. About 60% of Shopify merchants accept paypal in one way or another. Shopify currently supports the following paypal related payment mechanisms:
- PayPal Website Payment Standard
- PayPal Payflow Pro (ex. verisign)
- PayPal Website Payments Pro (UK)
- PayPal Website Payments Pro (US)
The Shopify team highly recommends Website Payments Pro (WPP) where available as it integrates into Shopify better because its underlying technology is a lot more robust.
WPP also leads to a better customer experience because customers are not redirected to PayPal pages during the checkout which reduces the amount of conceptually and visually different steps. Customers can enter credit card details directly on Shopify's checkout pages which is a more natural process for buyers.
Payflow
Payflow used to be part of the Verisign payment systems and was aquired by PayPal in 2007. You can read more about the acquisition at http://www.verisign.com/support/advisories/page_PAYPALFAQ.html .
Common Issues
My paypal orders don't show up
Paypal sometimes experiences delays in their IPN ( Instant Payment Notification ) service which is the mechanism with which they tell Shopify about completed orders. This seems to be a common issue in the Australian region. Delays can range from a few minutes to several hours. IPNs are only part of the Website Payments Standard package. Website Payments Pro does not have this issue and all orders should show up immediately.
This transaction cannot be processed due to an invalid merchant configuration.
Please complete the following checklist:
- Make sure you've signed up with PayPal for PayPal Website Payments Pro. This is a services provided on top of the standard PayPal package and costs approximately 30$ USD a month.
- Have agreed to the billing agreement of PayPal Website Payments Pro?
- Have the correct PayPal email address entered in Shopify?
- Have given our PayPal API account the appropriate API permissions,
as described on the payment preferences page?
Third-party authentication: Grant Shopify the appropriate API authentication permissions
1. Log in to your PayPal account and click the Profile subtab.
2. Click the API Access link in the Account Information column.
3. Click the Grant API Permission link.
4. In the Enter an API Partner Username field, enter scott_api1.jadedpixel.com.
5. Check the following API permissions:
* Express_Checkout
* Direct_Payment
* Express_Checkout
* Admin_API
* Auth_Settle
6. Click the Save button.
The particular error you've received is mentioned here:
If you are not signed up for PayPal Website Payments Pro then you can use PayPal Website Payments Standard, which is under "Accept External Payment Service" in the Checkout & Payment screen of Shopify.

