This guide will help you set up payouts to PayPal through your Payment Rails account.

Requirements to use PayPal Payouts 

  1. A PayPal Business Account.
  2. Please contact PayPal to ensure that Payouts has been enabled for your account. Not all PayPal accounts have this feature enabled automatically.

If you are switching from PayPal Mass Payments, then you should remove your IPN notification in PayPal. You can find the instructions to do that listed here

Set up

Step 1 

Head over to PayPal's Developer portal and click on Dashboard in the dropdown located in the top right corner of the screen. You may be asked to login first.

Step 2

You need to verify that you have the Payouts API enabled. Unfortunately, this might take anywhere from a few hours to several days for PayPal to give you permission. We don't have control over this. However, applying for it is very easy. At the bottom of the column called "permission name", you'll see the row labeled "Payouts". You want to click the "Enable" link. 

PayPal will email you that they are reviewing your request. Once you've been accepted you'll notice a green check mark signifying that the API is live.

Step 3

Click on My App & Credentials in the left side menu. Scroll down till you find the "REST API apps" section found under the My Apps & Credentials. Click the "Create App" button. 

Step 4

(Create a name for your App) Under App Name type "Payment Rails" Payout. Then click the "Create App" button. 

Step 5

Click Show underneath the Secret header and make sure to select "Live" on the top right.

Step 6

Please make note of the two fields marked Client ID and Secret. You'll need to input these into your Payment Rails account in the next section

We recommend opening up a text editor like Notepad or a Google Doc and copying and pasting those IDs to reference later in this article.

Step 7 

Now we need to obtain the Webhook ID. The Webhook ID allows us to keep track of your payment statuses inside Payment Rails. 

We need to do three things to generate the ID. First, click the Add Webhook button in the Live Webhooks box.

Second, enter the following URL in the "Webhook URL" field: https://api.paymentrails.com/hook/paypal/app

Lastly, click the box labeled "all events". When you click it, all the boxes will become checked. Scroll down and click save. 

Step 8

You should now be able to view your Webhook ID. Make note of this ID, you'll need it in the steps below.

Please note: The following steps can only be completed after PayPal has approved your access of their Payouts API

By default, the Payouts feature is enabled in the sandbox environment. Merchants in the U.S. with a business account can enable Payouts in the live environment.

Note: Merchants in other countries must contact PayPal to enable Payouts in the live environment.  

Step 9

Now you must input the details in your Payment Rails account. In the dashboard go to Settings > Payout Method and select the PayPal icon.

Step 10

Enter the details you took down from your PayPal account and input them in the appropriate field and hit the Save button.

Fees charged by PayPal: https://www.paypal.com/us/webapps/mpp/merchant-fees#paypal-payouts


For more details on the difference between PayPal Payout and PayPal Mass Paypout please see What is the PayPal Payouts API

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