PayPal Billing Agreement Settings

A billing agreement is a sales agreement between the merchant and customer that has been
authorized by PayPal for use with multiple orders. During the checkout process, the Billing
Agreement payment option appears only for customers who have already entered into a billing
agreement with your company. After PayPal authorizes the agreement, the payment system
issues a unique reference ID to identify each order that is associated with the agreement.
Similar to a purchase order, there is no limit to the number of billing agreements a customer
can set up with your company.
1. To make billing agreements available to your customers, click to expand the PayPal
Billing Agreement Settings section.
2. Set Enabled to “Yes.” Then, do the following:
a. Enter a Title to identify the PayPal Billing Agreement method during checkout.
b. If you offer multiple payment methods, enter a number in the Sort Order field to
determine the sequence in which Billing Agreement appears when listed with other
payment methods during checkout.
c. Set Payment Action to one of the following:
Authorization Approves the purchase, but puts a hold on the funds.
The amount is not withdrawn until it is “captured” by
the merchant.
Sale The amount of the purchase is authorized and
immediately withdrawn from the customer’s account.
d. Set Payment Applicable From to one of the following:
All Allowed Countries Accepts payment from the countries already specified
in your configuration.
Specific Countries Accepts payments from only the countries you specify.
Hold the Ctrl key down and in the Payment Applicable
From list, click each country where you accept
e. To record communications with the payment system in the log file, set Debug Mode
to “Yes.”
The log file is stored on the server and is accessible only to developers. In accordance
with PCI Data Security Standards, credit card information is not recorded in the log file.
f. To enable SSL verification, set Enable SSL verification to “Yes.”
g. To display a summary of each line item in the customer’s order on your PayPal
payments page, set Transfer Cart Line Items to “Yes.”
h. To allow customers to initiate a billing agreement from the dashboard of their
customer account, set Allow in Billing Agreement Wizard to “Yes.”

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