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How to collect payments with Paypal

Paypal is the easiest payment method to configure. It is also the only one without any subscription free.

Setup your Paypal account

1. Create a business account at Paypal.com (see: https://www.paypal.com/in/cgi-bin/webscr?cmd=xpt/Marketing/general/how-to-set-up-a-paypal-account-outside) or upgrade your account to Business account (merchant) if you have a basic account.

2. Log in to your account at Paypal.com and go to My Account ‣ Profile ‣ My Selling Tools. There click PayPal button language encoding under More Selling Tools section. Then, click More Options and replace the two default encoding formats by UTF-8.

  1. Open Paypal setup form in Odoo and enter your Email ID.

4. The Paypal Merchant ID is not mandatory (extra verification level). It is provided in Paypal under My Account ‣ Overview.

5. Configure the IPN feedback (Paypal contacting your Odoo instance without needing the redirection). The setting can be found in Profile ‣ My Selling Tools ‣ Instant payment notification. Activate it and set it to <odoo_instance_url>/payment/paypal/ipn.

6. To test the workflow, you can create sandbox accounts by logging in at https://developer.paypal.com/webapps/developer/applications/myapps with the same Paypal credentials. Two default sandbox accounts are automatically generated when you register to Paypal: one is a buyer, the other is a shopper.

7. Log in with your buyer sandbox account to https://www.sandbox.paypal.com (same password than real account) and apply the same format change.

Transaction fees

You can charge an extra to the customer to cover the transaction fees Paypal charges you. Once redirected to Paypal, your customer sees an extra applied to the order amount.

To activate this, go to the Configuration tab and check Add Extra Fees. Default fees are the ones charged by Paypal.