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Additional information

PayPal Fraud Prevention

User account status

The status of the PayPal account can be either verified or unverified. It becomes verified only after the user has validated the funding source that is attached to the PayPal account. On first PayPal registration consumer has status unverified.

Possible values
  • Verified
  • Unverified
How to get verified

To become verified, the user must:

  • Confirm the email address.
  • Add a credit card or bank account to the PayPal account.
  • Link and confirm the CC/bank account by either confirming the deposits made by PayPal or a random code posted on the statement.
How to use it

This value is returned in the response with the status of the order. Based on the value returned you can: accept, deny orchallenge the payment

Best Practices
  • Set a minimal amount under which to accept all payments;
  • accept only transactions from verified users based in specific countries.

Both of these options must be implemented on your website. Additionally you can reward customers that have a verified account.

Address status

Status of the customer's address. A status of Confirmed means that a buyer‟s credit card billing and shipping addresses are the same. PayPal maintains a history of transactions shipped to any given address - when the address shows continual use with no issues raised by the buyer for non-receipt of items it will be rated confirmed.

Most unconfirmed addresses are not fraudulent, and sellers usually won’t experience problems with them. When you do ship to an unconfirmed address, PayPal encourages you to be alert and minimize risk by following their Security Tips for Sellers.

Possible values
  • Confirmed
  • Unconfirmed
  • None (consumer has never had goods shipped to his address)
How to use it

This value is returned in the response with the status of the order. Based on the value returned you can accept, deny orchallenge the payment.

Best practices

Set a minimal amount under which to accept all payments. This option must be implemented on your website.

PayerID

The unique identifier of a PayPal account and will never change in the life cycle of a PayPal account. It is a unique 13 alphanumerical character’s value (e.g. RZJF8EE021L5P).

How to use it

This value is returned in the response with the status of the order. You can store this value in your own black- or whitelist that can be used for real-time comparison for all future purchases from the same buyer. You can choose to accept or challengethe payment.

Best practices

Set a minimal amount under which to accept all payments. This option must be implemented on your website.

Account ID

The field AccountID is the username with which the PayPal account holder has registered at PayPal. This can be used with black- or whitelist as well as for velocity checks.

Possible values
  • Email address
How to use it

This value is returned in the response with the status of the order. You can store this value in your own black- or whitelist that can be used for real-time comparison for all future purchases from the same buyer. You can choose to accept or challengethe payment.

Best practices

Set a minimal amount under which to accept all payments. This option must be implemented on your website.

PayPal Reference Transactions

Reference Transaction allows you to collect recurring payments through PayPal for varying amounts of money on a varying schedule. The buyer can sign up for recurring payments as part of the Express Checkout flow. When you implement recurring payments using reference transactions, you control the amount of the transaction and when the transaction is initiated.

PayPal Merchant Agreement

Reference Transactions feature is regarded by PayPal as a high risk product. Each merchant must get approved individually for reference transactions by PayPal Underwriting.

Buyers must set up a Billing Agreement (hosted on PayPal) first before merchant can charge consumers. PayPal will need to make sure that the buyer specifically agrees to the reference transaction in the purchase flow and that this is also reflected in the website terms and conditions for the provision of service.

You must ask for additional approval to use the Reference Transactions feature. If you are a new PayPal merchant, ask for approval for Reference Transactions as part of the underwriting procedure. If you are an existing PayPal merchant, ask your account manager to initiate approval. Once approved, there is only a minor change to your PayPal account and no modifications to your account needed to start using Reference Transactions. See below:

As shown in the Transaction Details section, all the recurring payments are linked to the original order, which is set as the InvoiceID on PayPal. Therefore the blocking of duplicate Invoice IDs in the PayPal configuration MUST be disabled. The Implementation Manager will do this for you. If this configuration is not changed, you will see the following error:

10412, MESSAGE: Payment has already been made for this InvoiceID

Below steps are needed to change this configuration:

  • After log in, go to Profile
  • Click “Payment Receiving Preferences” link under “Selling Preferences”
  • Select “No, allow multiple payments per invoice ID”
Billing Agreement

You must have the buyer’s agreement to obtain funds from the buyer’s account. The buyer must log in to PayPal once to agree, but after that PayPal login is not required. This agreement is represented as a billing agreement between you and the buyer, which is maintained by PayPal. The buyer can agree during the Express Checkout flow. This Billing Agreement ID is stored in our database, which is send to PayPal automatically whenever a new recurring payment is made on an order. The billing agreement ID does not have a time frame; it is approved until canceled by the buyer. A buyer may have more than one billing agreement ID for your site, which could occur if the buyer established separate agreements for different kinds of services.

Limitations imposed by PayPal
  • The profile start date may not be earlier than the profile creation date.
  • At most ten (10) recurring payments profiles can be created during checkout.
  • Each recurring payment must not exceed $10,000 USD (or equivalent in any other currency)
  • The billing agreement can only be cancelled by the consumer.

PayPal API flow

When the customer selects PayPal as a payment option from your payment page, they are redirected to the PayPal website to log in and select their funding source. The buyer is then presented with a confirmation page, which is shown in Figure 2. If the billing agreement was accepted, PayPal returns information about the purchase and a billing agreement ID. This ID is saved in our database for future recurring payments for this order. Please note that the name ‘GlobalCollect’ in the screenshot below is for the purpose of example.

Transaction Details

The transaction details on the initial order (see Figure 4) will be the same as a normal one-off PayPal transaction. Please note that the billing agreement ID is not shown on the initial order, only on the recurring payment details.

The screenshot below shows the transaction details of a recurring payment with the Billing Agreement ID. Please note that the initial order and all recurring payments have the same InvoiceID and Custom number. By default, the value for both InvoiceID and Custom number is our payment reference number. But InvoiceID may be the airline ticket number if the airline data is used.

The consumer can cancel Billing Agreement at any time without any notification being sent to you. If you attempt to issue a recurring payment on a cancelled Billing Agreement, you would get a PayPal error with error code 10201 Message: Agreement cancelled. Once the Billing Agreement is cancelled, it cannot be reused. The consumer must establish a new Billing Agreement.

PayPal Airline Data

The GlobalCollect platform has implemented support for Airline Data as part of the PayPal transaction. If you are an airline you can take advantage of this feature to store specific information regarding flights with your existing PayPal account through us.

Refunds

Refunds must be issued within 180 days of the original transaction. If you are an airline company, this period is extended to 365 days. Should your business need a longer refund period your account manager is happy to request this at PayPal. The request should be accompanied by your terms & conditions and the reason why you will need a longer refund period.

Your liability

PayPal’s policy outlines that a merchant is both liable and responsible for all PayPal disputes, claims andchargeback’s. Please click here for the most up to date information on dispute handling and resolution. Please click here for PayPal’s comprehensive guide on chargebacks.

Chargebacks

Once the chargeback is initiated, PayPal will temporarily hold the funds from your account. These funds will be held by PayPal until the outcome of the chargeback is resolved. If the consumer wins the case, the funds will be released to the consumer. If you win the case, the funds will be released to you. You must respond to all PayPal chargebacks within 10 days, providing all requested supporting documentation. In the table below is an overview of the actions that needs to be taken by you.

TypeReasonStatus NameStatus DefinitionAction – ButtonRelevance for merchant / required action
Dispute Non-receipt Open Dispute between Buyer and Seller is open. PayPal is not investigating View
  • Grant a full refund
  • Escalate this Dispute to a PayPal Claim
  • Post a Message
Chargeback Unauthorized Requiring your action Seller must respond Respond
  • Provide shipping information
  • Provide evidence other than proof of shipment
  • Provide proof that I refunded the payment for this transaction
  • I will accept liability
Chargeback Non-Receipt Requiring your action Seller must respond Respond
  • Provide shipping information
  • Provide evidence other than proof of shipment
  • Provide proof that I refunded the payment for this transaction <
  • I will accept liability
Chargeback Merchandise Requiring your action Seller must respond Respond
  • Provide shipping information
  • Provide evidence other than proof of shipment
  • Provide proof that I refunded the payment for this transaction
  • I will accept liability
Chargeback Duplicate Requiring your action Seller must respond Respond
  • Provide shipping information
  • Provide evidence other than proof of shipment
  • Provide proof that I refunded the payment for this transaction
  • I will accept liability
Chargeback Special Requiring your action Seller must respond Respond
  • Provide shipping information
  • Provide evidence other than proof of shipment
  • Provide proof that I refunded the payment for this transaction
  • I will accept liability"
Chargeback Unauthorized Being Reviewed by PayPal PayPal is reviewing the seller's response to determine if we can dispute the chargeback case. No Button Available no actions needed by Seller / PayPal is currently reviewing the case
Chargeback Non-Receipt Being Reviewed by PayPal PayPal is reviewing the seller's response to determine if we can dispute the chargeback case. No Button Available no actions needed by Seller / PayPal is currently reviewing the case
Chargeback Merchandise Being Reviewed by PayPal PayPal is reviewing the seller's response to determine if we can dispute the chargeback case. No Button Available no actions needed by Seller / PayPal is currently reviewing the case
Chargeback Duplicate Being Reviewed by PayPal PayPal is reviewing the seller's response to determine if we can dispute the chargeback case. No Button Available no actions needed by Seller / PayPal is currently reviewing the case
Chargeback Special Being Reviewed by PayPal PayPal is reviewing the seller's response to determine if we can dispute the chargeback case. No Button Available no actions needed by Seller / PayPal is currently reviewing the case

Disputes

A dispute can be initiated through the consumers resolution center within their PayPal account. Upon a dispute being initiated, an email notification will be sent to you to the email address you have set in your companies PayPal account. PayPal will expect that you and the consumer can resolve the dispute amicably amongst themselves. Once the dispute is initiated, PayPal will temporarily hold the funds from your account. These funds will be held by PayPal until the outcome of the dispute is resolved. If the consumer wins the case, the funds will be released to the consumer. If you win the case, the funds will be released to you. You can start the dispute resolution process by logging into your PayPal account and go to “Resolution Center” from the “My Account Overview” page. All the opened disputes or claims will be listed in the Resolution Center.

Disputes can be escalated to a claim, which is explained below, by either the consumer or by you at any time within 20 days of the date the dispute was opened. The consumer will receive an automated email reminding them of the deadline for escalating to a claim (day 16 and 18). If a dispute is not closed or escalated within 20 days of being filed, the dispute will be closed automatically. Once a dispute is closed it can no longer be escalated to a claim for PayPal to review.

Claims

If you and the consumer are unable to resolve a dispute, the dispute can be escalated to a PayPal claim. By escalating the dispute to a claim, you or the consumer is asking PayPal to review the case and decide the outcome. PayPal will request information from the merchant and the merchant will have 7 days to provide the documentation/information to support the claim. If the documentation is not received by PayPal within 10 days from the original request, PayPal will automatically accept the claim, refund the consumer and debit you. In some instances PayPal might enforce shorter timelines and these will be communicated in the email you receive. PayPal endeavors to decide on claims within 30 days.

Forbidden industries

  • Any adult related industry
  • Drugs or pharmaceuticals (and all drugs related)
  • Illegal activities, products/services and the peripheral support (service providing) of illegal activities.
  • Terrorists, individuals and organizations supporting terrorist activities as listed by any government (www.treasury.gov/offices/enforcement/ofac/sanctions/terrorism.html)or any other applicable government site.
  • Travel (without license of National Travel Industry Bonding Organization)
  • Weapons, weapons related activities
  • Animal trading of any kind
  • Aggregators
  • Clients which may damage the brand or reputation of either us, its supplying banks or card associations – with specific reference to MasterCard “Brand damaging transactions” guidelines.

Any business that the Risk Department or Board of directors decide to be unethical. In such situations each case is examined individually.

Setting Up Your PayPal Account

You will need to setup a PayPal Business Account. The fields described below are for an “United Kingdom” PayPal account, but there may be additional fields to complete for opening PayPal accounts in various countries. If you already have a PayPal account, you will have to open a new PayPal account to enable processing via us. There are no exceptions to this rule. You are legally forbidden to withdraw any funds from this PayPal account or use “Send Money” to transfer fund to another PayPal account.

Completing the following steps will ensure that a Business PayPal account is successfully setup.

  1. Go to https://www.paypal.com. The country will automatically detected and you can chance that if needed
  2. Click on the “Sign up” link From the account types displayed, select Business Account. If additional options are given to choose (e.g. Standard, Pro, etc.), select the desired level and click the “Continue” button.
  3. You will now be asked to provide details on your business, contact person and login details. The sections below detail the information that you will have to provide. After you have entered your e-mail address in order to sign-up or login, you will need to provide additional business information.
    Field NameDescriptionMandatory
    Business Type Type of business (e.g. sole proprietor) Yes
    Business Name Official name of business Yes
    Address Line 1 Merchant’s business postal address Yes
    Address Line 2 Merchant’s business postal address No
    Town City Merchant’s business postal address Yes
    County Merchant’s business postal address Yes
    Postcode Merchant’s business postal address Yes
    Country Merchant’s business postal address Yes
    Category Select from drop down, the main goods or services being sold Yes
    Subcategory Select from drop down, the subcategory which best describes that the merchant is selling Yes
    Business URL Primary URL of business Yes
  4. Business Owner Contact Information
    Field NameDescriptionMandatory
    First Name Owner’s first name Yes
    Last Name Owner’s last name Yes
    Country of Citizenship Owner’s country Yes
    Work Telephone Owner’s work telephone number Yes
    Home Telephone Owner’s home telephone number No
    Mobile Telephone Owner’s mobile telephone number No
    Home Address If same as business address or fill in full home address Yes
    The Primary account holder must thoroughly read the User agreement and Privacy Policy.
  5. Account Confirmation: Once you have completed the sign up process, PayPal will send an email to the email address you just provided requesting you activate the email address. The e-mail will be sent from service@paypal.com. If you can’t find an email from PayPal, check the junk/spam filter as it can accidentally have been blocked. Click the hyperlink in the email and follow the instructions on screen
  6. Optional Business Information: The completion of all fields is mandatory. This is to enable the PayPal underwriting team to assess the account. If the information is not provided PayPal will not allow you to start processing with your account. You can also reach these details by updating the “Business Information” page in the “My Business Details” section in your profile.
  7. Bank Accounts and other funding options: The setup process may prompt you to add funding sources to the account. As our clients do not require any funding or withdrawal options on their account, this is not applicable. Select continue.
  8. Multi-User Access: Because your PayPal account is owned and controlled by you, you need to create a multi-user access account for the Ingenico ePayments authorized users as defined when you asked us to add PayPal to the payment products you use. The steps to create a multi-user account are:

    • Login to the PayPal Account
    • Go to the “Profile tab” in the PayPal account
    • Select “Profile and settings”
    • Go to ‘My account settings”
    • Press “get started” on the section “ Manage users”
    • The Manage Users page will be displayed and click on “add user”. Fill the form with the data shown in the table.
      Field NameDescription
      User’s first name Type in “Michael Richard”
      User’s last name Type in “Goodenough”
      User ID The format of the user ID we would like is “ppxxxxxxxx” where xxxxxxxx is the merchant name
      Re-enter user ID Re-enter the user ID typed in above
      Password The initial password should be “Welcome2008”. After giving the multi-user account ID to us, the authorised user will then change the password.
      Re-enter password Re-enter the password typed in above
      Accounting section

      The following privilege should be enabled in the “Accounting” section: Mass payment

      Integration section Select “API Activation & Authorisation”
      User’s date of birth Enter 03-04-1969 (3 April 1969)
      Country Select “Netherlands”
      Address line 1 Type in “Planetenweg 43-59”
      Address line 2 Leave blank
      Postcode Type in “2132 HM”
      Town/City Type in “Hoofddorp”
      Administration section "Enable the following privileges in the ”Administration” section:
      View Balance
      View Profile
      Discuss account with Customer Service"
      More
    • Click save when you are done and inform your merchant boarding manager of the user id and password.
  9. Grant API Access: It is important to grant API Access to us to allow API calls on your behalf. If this is not configured, all transactions will fail. To grant the API access do as follows:
    • Go to the “Profile tab”
    • Select “Profile and settings”
    • Click on “My selling preferences”
    • Click on update “API access”
    • Click on option 1 “Grant API permission”
    • Enter “paypal.merchant_api1.globalcollect.com” as Third Party Permission Username
    • Click “Lookup” button. DO NOT click Cancel on this page.
    • Check the boxes as indicated in the screenshot below
    • Click on “Add”




  10. Block Payments: There are a few payment options that should be blocked from acceptance. These options cause problems with the reconciliation of payments done by us. To block these payments :

    • Go to the “Profile” tab
    • Select “Profile and settings”
    • Click on “My selling preferences”
    • Click update “Block payments”
    • Select the following options:
    • Allow payments sent to me in a currency I do not hold, select the“No, refuse the payments”, so that you block the payments that are in a currency that you do not support
    • Block payments from users who initiate payments from Pay anyone subtab of the Send Money tab
    • Block the following payments: Pay with eCheque or German bank transfer for all website payments except eBay. 
  11. Multi-Currency Acceptance: you can enable additional currencies. In order to set this up, follow these steps:

    • Go to the “Profile” tab
    • Select “Profile and settings”
    • Click on “My money”
    • Click on “PayPal Balance”
    • Click on “currencies” and the list of currently accepted currencies will be shown
    • Select the primary currency of the account and press the “make primary” button
    • Select the additional currencies that your wish to accept by choosing these currencies from the drop-down list and click the “Add Currency” button.
      Do not use currency exchange. We remit funds to you in the currency of your choice.
    • In case you do not longer want to accept a currency, please select that currency and click the “Close Currency” button.
    • Please ensure that the balance of the account is zero before disabling the currency. If there is a balance in the system will force a currency conversion to another open currency.
  12. Create SFTP Access: if your account is not in one of the MAM supported countries, you will have to grant us access to reports from your account. For this purpose, you will have to create SFTP access for us. Please contact your implementation team to exchange the login details and procedure.