Skip to content

PayPal Setup Guide

This guide covers setting up PayPal for both testing (sandbox) and production environments, specifically for subscription payments and webhooks.

Sandbox Environment Setup

1. Create Developer Accounts

  1. Go to PayPal Developer Dashboard
  2. Create two sandbox accounts:
    • Business account (to receive payments)
    • Personal account (to make test payments)

2. Create Sandbox App

  1. In Developer Dashboard, go to "Apps & Credentials"
  2. Click "Create App"
  3. Select "Sandbox" for testing environment
  4. Name your application (e.g., "Not Alone Test")
  5. Note down:
    • Client ID
    • Client Secret

3. Create Subscription Plans

  1. Navigate to "Products & Plans"
  2. Create a product: 
    Products > Create Product
  3. Create subscription plan(s):
    • Set billing cycle (use daily for testing)
    • Set price points
    • Note down Plan ID for each plan

4. Configure Webhooks

  1. Go to "Webhooks" in Developer Dashboard
  2. Click "Add Webhook"
  3. Enter your webhook URL: 
    https://your-app-url/_/api/capture-sub
  4. Subscribe to these events:
    • BILLING.SUBSCRIPTION.ACTIVATED
    • BILLING.SUBSCRIPTION.CANCELLED
    • BILLING.SUBSCRIPTION.EXPIRED
    • BILLING.SUBSCRIPTION.UPDATED
    • PAYMENT.SALE.COMPLETED
  5. Save and note down the Webhook ID

Production Environment Setup

1. Business Account Setup

  1. Create or use existing PayPal Business account
  2. Ensure your business account is verified and in good standing

2. Create Live App

  1. Go to PayPal Developer Dashboard
  2. Click "Create App"
  3. Select "Live" for production environment
  4. Name your application (e.g., "Not Alone")
  5. Note down:
    • Client ID
    • Client Secret

3. Create Live Subscription Plans

  1. Navigate to "Products & Plans"
  2. Create your product: 
    Products > Create Product
  3. Create subscription plan(s):
    • Set actual billing cycle (monthly/yearly)
    • Set real price points
    • Note down Plan ID for each plan

4. Configure Live Webhooks

  1. Go to "Webhooks" in Developer Dashboard
  2. Click "Add Webhook"
  3. Enter your production webhook URL: 
    https://your-production-url/_/api/capture-sub
  4. Subscribe to these events:
    • BILLING.SUBSCRIPTION.ACTIVATED
    • BILLING.SUBSCRIPTION.CANCELLED
    • BILLING.SUBSCRIPTION.EXPIRED
    • BILLING.SUBSCRIPTION.UPDATED
    • PAYMENT.SALE.COMPLETED
  5. Save and note down the Webhook ID

Testing

Sandbox Testing Checklist

  1. Test subscription creation:

    • Use sandbox personal account to subscribe
    • Verify webhook notification
    • Check subscription status in business account

  2. Test subscription cancellation:

    • Cancel subscription from personal account
    • Verify webhook notification
    • Check status update in business account

  3. Test subscription updates:

    • Modify subscription if your plans allow it
    • Verify webhook notification
    • Confirm changes in both accounts

  4. Test recurring payment processing:

    • Confirm successful payment capture
    • Verify PAYMENT.SALE.COMPLETED webhook
    • Check payment appears in business account

Production Verification

Before going live:

  1. Verify all webhook endpoints are correctly configured
  2. Test a small real transaction
  3. Confirm subscription plans are correctly priced
  4. Verify all PayPal buttons are using production credentials