Is IPN required to detect cancellation of REST created Subscriptions? - paypal

I have REST API created Payment Plans and agreements and would like to be able to detect when a user cancel an agreement. My original take on this was that the cancel_url on the merchant_preferences object for billing_plan would be used if a users canceled the agreement through the PayPal API, but I am not seeing any callbacks coming in so perhaps this is incorrect?
I have seen plenty on information on IPN processing cancellations and I would love to know if that is the only way to receive a cancellation notification or should I be using another field in the REST API to set this up?
I'm not against using IPN (hey whatever gets the job done!), but it seems to me that the REST API should have its own capabilities for achieving this as well.

Hey this is Avi from PayPal. Refer to this github issue for information about getting IPN notifications for subscription events.
The REST API does have webhooks, and work is in progress to support subscription events for webhooks as well.

Related

What event is triggered from PayPal on successful recuring payment (for subscription)?

I have a subscription based web site where I would like to get statistics about all the current active subscribers and how many cycles they have made. This would have been easy task if the PayPal API had an endpoint for fetching all subscriptions but this is missing from their API. So I'm tracking this in our DB. I'm successfully recording the new subscriptions and the cancellations. But I'm not sure what event I should expect from PayPal to be triggered when a subscription renews.
In PayPal's documentation I have found only few events related to the subscriptions, and none of those seems to serve my needs. There are also an event called BILLING.SUBSCRIPTION.RE-ACTIVATED but it comes from "Billing plans and agreements" which is deprecated.
In SO I have found this post which advises to check for the PAYMENT.SALE.COMPLETED, but this is not perfect as I will get all sort of payments that hit this PayPal account (it is used not only for subscriptions but also for one-time payments).
It's PAYMENT.SALE.COMPLETED
For one time payments, a /v2/checkout/orders integration shouldn't trigger that same event, only the deprecated /v1/payments does AFAIK.
You can tell whether it's a subscription payment by the payload, subscription IDs begin with I-

PayPal Subscription Cancellation - Webhook

From a developer perspective, what is the best way to capture (webhook wise) a user cancelling their PayPal subscription via their dashboard (and/or subscription payment failing)?
I've had some discussions with PayPal support and have learnt the following:
Subscription button:
-simple, elegant, works well to let user subscribe
-however, when user cancels subscription via their dashboard does NOT fire a BILLING.SUBSCRIPTION.CANCELLED webhook. Only an IPN HTTP "webhook" gets fired. From the paypal docs, IPN seems harder to integrate (not REST, and for example the IPN simulator doesn't even have "subscription cancellation" events)
Using API (PayPal PHP SDK):
-DOES fire BILLING.SUBSCRIPTION.CANCELLED webhook events when user cancels their subscription via their PayPal dashboard (why this doesn't work for button-created subscriptions I do not understand)
-However, seems much more complex to set up than the button (what does the web flow look like?)
Just some thoughts on the best approach would be appreciated.
It depends on the type of 'Subscribe' button.
Legacy 'Subscribe' buttons created via e.g. https://www.paypal.com/buttons , will not fire a BILLING.SUBSCRIPTION.CANCELLED webhook. Those buttons predate webhooks by 10 years, and only use the very old IPN service. Stay away...
Current smart subscribe buttons, created via e.g. https://www.paypal.com/billing/plans or following the documentation do trigger the BILLING.SUBSCRIPTION.CANCELLED webhook.
In general, you can make use of the CANCELLED webhook and track this status if you want to but it's not necessary. The most important best practice is to make use of PAYMENT.SALE.COMPLETED and record when a subscription was last actually successfully paid for. If it doesn't get paid for again on time, then it's lapsed and you treat it accordingly.
When creating a subscription, along with the plan_id you can pass a custom_id which will be returned in all the webhooks. This can be useful for reconciliation purposes so you know which user it's for.
Using API (PayPal PHP SDK):
That SDK is deprecated, don't use it. Any API calls should be done directly via HTTPS.

When to use IPN and when WebHooks in PayPal as a notification mechanism?

I'm looking at the documentation of WebHooks and IPN and I wonder: which one should I use my store where I don't need really real-time notifications? Even 1 hour delay will do. How do WebHooks and IPN differ for this matter?
IPN is the classical way of notifying merchants of events such as payments or subscriptions. It's coupled with the deprecated classic API. It might take a minute for events to reach the merchant.
Webhooks is the new REST API way where the event is sent almost instantly to the merchant.
It's better to implement Webhooks because it's the new way and IPN might be disposed of in the future.
This is the entry point for PayPal's notification docs describing Webhooks, IPN and PDT: https://developer.paypal.com/docs/notifications/
I can't offer definitive differences but some sources say that Webhooks are faster on the first message than IPN. Webhooks are indeed more recently implemented. From my experience, IPN messages are complex and not straightforward at all. Webhook messages on first sight looked more straightforward.
Based on your description I don't think there're huge differences. I'd prioritize the approach with more existing libraries (if any) for your stack.
Webhooks are HTTP callbacks that receive notification messages for events.
Documentation : https://developer.paypal.com/docs/integration/direct/webhooks/
IPN Instant Payment Notification is a message service that automatically notifies merchants of events related to PayPal transactions.
Documentation : https://developer.paypal.com/docs/classic/products/instant-payment-notification/

Paypal doesn't fire webhook on BILLING.SUBSCRIPTION.CANCELLED in sandbox

I haven't tested in live, but currently I have a webhook subscribed to the following events
Billing subscription cancelled
Billing subscription created
Billing subscription re-activated
Billing subscription suspended
Billing subscription updated
I'm receiving Webhook events for CREATED but nothing is being sent when a user cancels the subscription from their PayPal dashboard.
Is this expected behavior? is there another event I should be subscribe to to capture that user action?
Is there a debug id that you can share so we can trouble shoot?
Thanks,
Usha
From Paypal support (I still don't understand why the BILLING.SUBSCRIPTION.CANCELLED doesn't fire when a user cancels from their dashboard, similar issue here: BILLING.SUBSCRIPTION.CANCELLED does not fire upon user action?)
"But surely users subscribing via the button is the most common method of subscribing (how else would they subscribe?). The IPN route seems like a completely non-developer-friendly one (seeing as there isn't even simulator events for it)"
If you integrate a solution which is not based on our REST API's and want to receive HTTP notifications, you need to use instant payment notification (IPN). The IPN simulator may not provide a method of simulating the events, but you can create subscriptions in our sandbox environment and setup a sandbox business account with IPN and test cancelling the subscriptions, which will generate an IPN for the cancellation. We have a sandbox testing guide available here if you're not familiar with that environment and want to get started.
"So why would webhooks ONLY fire for API-based subscriptions (and why would a business website subscribe users using the API rather than the simple button)? What is the logic behind this?"
It depends on the integration and needs of the individual business. Some businesses only use our REST-based API solutions for their complete integration, from checkout payments to subscriptions and logically, this makes sense to them to only have to use one set of API's for their complete integration. Other business only want / need a more simple solution such as using buttons and as these are legacy solutions which are not REST-based, they use our legacy HTTP notification service which is instant payment notification (IPN).

Paypal REST API and Chargebacks/Cancellations

I have been working paypal integration to an existing system of ours and successfully done tests on sandbox by using rest api and express checkouts.
Although documentation is detailed, I couldnt see anything about chargeback (i.e reverse transactions) and cancellations on rest api documentation page http://developer.paypal.com/docs/api/
So in case a user buys something successfully and the payment status becomes "completed", then there is a reverse transaction like chargeback, paypal will send a request to the return and cancel urls which are predefined while creating the related payment, or the client application has to check the payment statuses manually by rest calls? Or are there any other configs that I need to send while triggering the very first payment request?
You'll need to setup Instant Payment Notification (IPN) to handle that sort of thing.
IPN will automatically POST data about all transactions that hit your PayPal account to a URL you specify. This URL (a script) can receive the data and update your database, generate email notifications, or anything else you might want to automate based on the transactions.
You can handle all sorts of things with IPN. For chargebacks specifically, you would receive an IPN with the following params...
txn_type=new_case
case_type=chargeback
Of course, you'll get a bunch more parameters, too, but those would be how you can pick out the chargebacks and processing them accordingly.