Study Guide
Table Of Contents
- PayPal Certified Developer Program Study Guide
- Contents
 - List of Tables
 - Online Payment Processing
 - Internet Security and Fraud Prevention
- Why Every Business Should Be Concerned About Internet Fraud
 - Liability for Internet Fraud
 - Internet Fraud: What It Is and How It Happens
 - Who Is at Risk for Online Fraud
 - Reducing Exposure to Fraud
 - What Banks and Card Associations Are Doing to Prevent Online Credit Card Fraud
 - What PayPal Is Doing to Protect Your Business Against Fraud
 - Disclosure and Compliance
 - PayPal Fraud Protection Services
 - Review Questions
 
 - Getting Started With Account Setup
 - API Credentials
 - Name-Value Pair (NVP) API
 - Express Checkout
 - Direct Payment API
 - Transactions
 - Sandbox Testing
 - Answers to Review Questions
 - General Reference Information
 - Glossary
 - Index
 
 
Contents
6 March 2008 PayPal Certified Developer Program Study Guide
Instant Payment Notification (IPN). . . .  . . . . . .  . . . . . . . . . . . . . . . .  . .100
Dispute Notification  . . . . . .  . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . .103
Review Questions  . . . . . . .  . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . .  .103
Chapter 9 Sandbox Testing. . . . . . . . . .  . . . . . . . . . . . .  105
Overview . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . .  . . .105
At a Glance: Differences between the Sandbox and Live PayPal . . . . . . . .  . . . .105
Accessing the PayPal Sandbox  . . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . .107
Signing Up for Sandbox Access . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . .108
Welcome to the PayPal Sandbox  . . . . . . . . . . . . . . . . . . . . . . .  . . . . . 110
Test Email  . . . . . . . . .  . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . .  .110
Setting Up Test Accounts  . .  . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . 111
Planning the Types of Test Accounts You Need . . . . . . . . . . . . . . . .  . . . . . 111
Managing Test Accounts. . . . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . 112
Adding a Funding Source  .  . . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . 115
Signing Up for Website Payments Pro. . . . . . . . .  . . . . . . . . . . .  . . . . . .117
Testing PayPal Website Features  . . . . . . . . . . . . .  . . . . . . . . . . .  . . . . . .118
Website Payments with the “Buy Now” Button  . . . .  .  . . . . . . . . . . . . .  . . .118
Handling Pending Transactions  . . . . . . . . . .  . . . . . . . . . . . . . . . . .  . .120
Instant Payment Notification (IPN). . . .  . . . . . .  . . . . . . . . . . . . . . . .  . .121
Verifying a Test Refund   . . . . . . . . . . . . . . . .  . . . . . . . . . . .  . . . . . .122
Transferring Funds to a Test Account  . . . . . .  . . . . . . . . . . . . . . . .  . . . .122
Clearing or Failing Test eCheck Transactions . . . .  . . . . . . . . . . . . . . .  . . .123
Sending Funds to a Seller .  .  . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . .123
Billing A Customer . . .  . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . .  . . .124
Testing PayPal NVP APIs . . .  . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . .125
Testing Express Checkout . . . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . .126
Testing Error Conditions  .  . . . . . . . . . . . . . . . . .  . . . . . . . . . . .  . . . . . .129
API Testing. . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . .  .130
Testing Using AVS Codes  . . . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . .134
Testing Using CVV Codes . . . . . . . . . . . . . .  . . . . . . . . . . . .  . . . .  . .138
Testing Recurring Payments . . . . . . . . . . . . . .  .  . . . . . . . . . . . . . . . .  . .140
Review Questions  . . . . . . .  . . . . . . . . . . .  . . . . . . . . . . . . . . . .  . . .  .141
Appendix A Answers to Review Questions. . . . . . . . . . . . . . .  143
Chapter 1. . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . . . . . . . . .  . . . . . .143
Chapter 2. . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . . . . . . . . .  . . . . . .146
Chapter 3. . . . . . . . . .  . . . . . . . . . . . . . . . .  . . . . . . . . . . .  . . . . . .150










