Developer's Guide

Credit Card Transactions
About Credit Card Processing
24 Payflow Pro Developer’s Guide
NOTE: You cannot remove a hold on funds through the processing networks—you must
contact the card issuing bank to lift a hold early.
Capturing a transaction actually transfers the funds to your bank. At least once a day, PayPal
gathers all transactions that are flagged to be settled and sends them in a batch file to the
processor. The processor then charges the issuing bank and transfers the funds to your bank. It
typically takes a few days before the money is actually available in your account, depending
on your bank.
Obtaining an Internet Merchant Account
To accept credit cards over the internet, you need a special account called an Internet Merchant
Account. Your account provider or merchant (acquiring) bank works with a PayPal-supported
credit card processor, such as First Data, TSYS Acquiring Solutions (formerly Vital
Processing Services), or Paymentech. To use Payflow Pro to accept live credit cards, you must
provide certain details about your account to PayPal during the “Go Live” part of the
enrollment process.
NOTE: An Internet Merchant Account is a different type of merchant account than a merchant
account used for face-to-face (in-person) retail transactions. It has additional risks
associated with card-not-present (e-commerce) transactions. You need to obtain an
Internet Merchant Account even if you already accept credit cards at your location.
To apply for an Internet Merchant Account, contact your merchant (acquiring) bank.
Planning Your Payflow Pro Integration
In designing your Payflow Pro integration, you should evaluate the following:
z Whether to use a one-step or two-step transaction process. One-step: Submit a Sale
transaction, which performs the Authorization and (if successful) then flags the transaction
for settlement. Two-step: Perform an Authorization-only transaction and then later perform
a Delayed Capture transaction. The Delayed Capture transaction can be for the same
amount as the original transaction or for a lower amount. (In the case of a split shipment,
you can perform a Delayed Capture transaction for the initial shipment and a reference
transaction for the final payment. These transaction types, plus the details of performing a
Delayed Capture for an amount higher than the original, are described in “Delayed Capture
Transaction: Capturing Transactions for Higher Amounts” on page 32.
According to card association rules, most physical goods merchants should use a two-step
process, since settlement should occur when the goods are fulfilled or shipped. A two-step
process is also useful if you want to evaluate information in the response, such as whether
the issuer verifies the billing address, and so on. Electronic goods merchants, who fulfill
the order immediately, can use the one-step process. Check with your Internet Merchant
Account provider for suggestions on the best method for you.
z Whether or how to use risk management tools such as address verification service and card
security code. For address verification service, if the data is submitted with the initial
transaction, the issuer checks the street address and/or the zip (postal) code against the