PayPal, What is it?

PayPal is an international payment processing service allowing customers to pay by credit card or create a digital wallet to store preferred payment methods. With a global reach PayPal deserves to be part of any business’s international expansion.

PayPal, How does it work?

MultiSafepay supports seamless integration with PayPal with the PayPal API. Funds are transferred directly to the merchant’s PayPal business account, while the transaction statuses and payment validation are managed by MultiSafepay. In order to integrate your PayPal Business account with MultiSafepay, the PayPal account API settings must be configured. Once the integration is completed you can receive payments through this gateway by using one of our plugins, or by implementing a custom integration with our API.

The transaction status refers to the status of the actual payment. MultiSafepay uses the order status for PayPal transactions. Since we do not collect the funds of completed PayPal transactions (as they are directly sent to your PayPal account), the financial status will remain ‘initialized’.

Please note the various descriptions of statuses and how they should be interpreted:

PayPal transaction flow

Order Status Financial Status Description
Initialized Initialized A payment link has been generated, but no payment has been received yet.
Completed Initialized A successful PayPal transaction has been received and the funds will be added to your PayPal balance.
Declined Declined Transaction has been rejected
Expired Expired An unfinished transaction will automatically expire after a predefined period.
Void Canceled Transaction has been canceled.

PayPal transaction, refund status flow

Order Status Financial Status Description
Reserved Initialized A refund has been requested.
Completed Initialized Refund has been successfully processed.

Full API reference on the payment method PayPal.

What is the Seller Protection

PayPal Seller Protection covers you in the event of claims, chargebacks, or reversals that are a result of unauthorized purchases or items your buyer did not receive. With PayPal Seller Protection, you are covered for the full amount of all eligible transactions.

Full documentation on What is Seller Pretection with PayPal transactions.

Product rules

Some rules may apply to certain payment methods. These rules apply to the payment method PayPal.

  • A payment link with the payment method PayPal is valid for 14 days. The lifetime of the payment link is set by PayPal. Therefore, a payment link created with the payment method PayPal will automatically expire after 14 days.

    The lifetime of PayPal exceeds the lifetime of MultiSafepay, unless the lifetime falls below the 14 days

    Full documentation on the lifetime of a payment link can be found on our FAQ page, Lifetime of a payment link

  • Uncleared transactions can only be declined or accepted within your PayPal account.

  • A successful payment received within your PayPal account can be refunded within 60 days. After the expired period, the refund needs to be processed in a different way.

  • For information on which currencies are supported within the payment method PayPal, please contact PayPal.

How to activate PayPal

  • Please note that specific required actions are highlighted with a blue frame on the screenshots below.

Configuration of PayPal Account

  1. Login at with your business account
  2. Navigate to Tools->All tools->API References->API credentials
  3. Click on Grant API permission
  4. Enter in the Third-Party Permission Username field. Click on Lookup

We need access to these options:

  • Use Express Checkout to process payments
  • Issue a refund for a specific transaction
  • Process your customers credit or debit card payments
  • Obtain information about a single transaction
  • Obtain authorization for pre-approved payments and initiate pre-approved transactions
  • Use Express Checkout to process mobile payments.

In order to ensure a correct integration with PayPal, you must change the language encoding setting of your PayPal account to UTF-8.

To do this, please follow the steps below:

  1. Navigate to the section Language Encoding in your PayPal account by clicking on the gear icon in the upper right corner and select My selling tools on the left side. Locate and click on the PayPal button language encoding on the bottom.
  2. Click on More Options. Change the Encoding to UTF-8 by selecting it from the dropdown menu.
    The following question will appear: “Do you want to use the same encoding for data sent from PayPal to you?”
    Answer with ‘yes’ and click on Save.

    Configuration of MultiSafepay Control

  3. Click on the gear icon in the upper right corner.

  4. Copy your Merchant Account ID

  5. Login in your MultiSafepay Control

  6. Navigate to Settings->Payment methods. Select ‘PayPal’ and enter your Merchant Account ID.

Your account is now configured, and you are ready to accept MultiSafepay payments. We strongly recommend you perform one or more test transactions in order to ensure everything is working correctly.

If PayPal is not visible as a payment method in your MultiSafepay Control, please contact the Integration Team at [email protected] to assist you further.

Please note that if you have enabled payment methods on a particular website, you should also enable PayPal for that specific website.

How to refund a PayPal transaction

The refund of a transaction with the payment method PayPal can be processed from within your MultiSafepay Control.

Please follow the following steps:

  1. Select Transactions -> Transaction overview
  2. Find the transaction through search
  3. Open the transaction
  4. Select refund
  5. Fill in the amount that you are going to refund to the customer
  6. Confirm.

MultiSafepay does not allow you to refund more than the stated amount of the original transaction.

The transaction status is now initialized, as long as the transaction status is stating initialized the refund can be canceled. When the transaction status is stating completed, the refund is processed correctly. The customer will receive the refund to the bank account number in which the transaction was originally paid to, within the next business day.

Note: outgoing payment will not be processed when your balance at MultiSafepay is insufficient.

Product rule

PayPal transactions can be refunded within 90 days.