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How PayPal integration works in Shopify

PayPal

How PayPal integration works in Shopify
How PayPal integration works in Shopify
PayPal allows payment through credit cards, bank accounts, buyer credit, or PayPal account balances.




PayPal is one of Shopify’s default payment providers. As soon as you open a store, you're given a PayPal Express Checkout account with the email you used to sign up for your Shopify store. Before you can collect payments for orders made with PayPal, you'll need to set up your PayPal account.
First of all we strongly suggest using PayPal Express instead of PayPal Standard for the following reasons:
  • Standard is deprecated (support for it will be removed from Shopify eventually).
  • Express is more reliable because PayPal doesn't have to send IPNs to Shopify (payment notifications) which have a tendency to get lost sometimes which causes orders to not get marked as paid correctly on the Shopify side.
  • Express supports a detailed order summary with descriptions for all line items.
  • Automated order cancellations: When you cancel an order in Shopify, the amount will get automatically refunded to the customer without requiring you to visit your PayPal admin interface.
  • Accelerated Onboarding: Start accepting payments right away without having a PayPal account. You can signup later after you've already received payments from your customers.
  • Express adds a One-Click Checkout button to the cart or a checkout page to let customers log in into their PayPal account to pay without entering any address information.
When using PayPal Express customers will go through the Shopify Checkout process to enter their address if and only if:
  • The customer doesn't click the PayPal Checkout button on the cart page for quick checkout (this button is mandatory and enforced by PayPal policies, you're not allowed to remove it)
  • You have more than one Payment Method activated for your shop. If not then customers get redirected to PayPal when clicking the Checkout button from your cart.
  • The customer doesn't click the PayPal Checkout button on the first page of your Checkout (again this button is mandatory from PayPal, you're not allowed to remove it)
That means that most of the time the order address will be collected on the PayPal side. PayPal collects only a shipping address and sends that address back to Shopify when redirecting your customer to page two of your checkout where they pick a shipping rate and enter discount codes (if applicable). The price is updated and customers can finalize their transaction.
If you have any questions please don't hesitate to contact the PayPal Frontline Support Team:
1-888-215-5506
The Frontline Support Team has a wealth of knowledge about the setup of accounts, troubleshooting merchant issues, and they are open 24-7.
PayPal's shipping and billing addresses
PayPal fills out the billing address fields with the buyer’s shipping address. The buyer can edit the information by clicking the Change links.
This is how PayPal works and cannot be changed. Shopify is only able to send a single address to PayPal. For normal PayPal payments (as opposed to credit card payments) this address has to be the shipping address, as PayPal already has the billing address. There is no way for Shopify to know ahead of time whether the customer has a PayPal account, so Shopify can't send the billing address, such as when the customer is not paying with their PayPal account, but a credit card instead.
You can upgrade your PayPal account to resolve this issue. PayPal Website Payments Pro is a more robust solution and is fully integrated into Shopify, so your customers never need to be transferred to PayPal when paying with a credit card. If PayPal Pro is not available in your country we suggest another payment provider for accepting credit cards (for example Moneybookers, which supports a lot of countries worldwide) and keep PayPal Express only for PayPal payments.
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