API Payout Feature - Authorization Error - paypal

Question

We are using the python package for Paypal.
The sandbox key is working fine, but when we switch to the live key, only the payout feature stops working:
Error message:
{"name":"AUTHORIZATION_ERROR","message":"Authorization error occurred","debug_id":"87fe36dc5d7a7","information_link":""}
I'm assuming it is because this feature is disabled on live accounts and we can request it, we need this feature for our site to work.
heres the code we're using:
payout = Payout({
"sender_batch_header": {
"sender_batch_id": sender_batch_id,
"email_subject": "Payment Sent"
},
"items": [
{
"recipient_type": "EMAIL",
"amount": {
"value": '{:.2f}'.format(payout),
"currency": "GBP"
},
"receiver": payee_paypal,
# "note": "Thank you.",
},
]
})
if payout.create():
payout_sent.send(promise, payment_id=payout.batch_header.payout_batch_id)
else:
payment_error.send(promise, reason=payout.error)

Answer 1

You need to have Mass Payments enabled on your PayPal account. Easiest way to check to see if you do indeed do have Mass Payments enabled is to visit 'my account' area at https://developer.paypal.com/webapps/developer/applications/myapps
If you do have a green check next to Payouts, then you are enabled. For both RESTful Payouts and Mass Payments. If you do not, then click through the Enable link. You kick off an application if you have a US PayPal account. If not, you'll have to contact your local Customer Support team.

Answer 2

I just spent a few days on this particular problem, and despite everything in all the documentation, none of it is really explicit about what this error means.
The documentation at paypal says that this is an 'Authorization Error' with frustratingly few details.
So, in order to save folks time and frustration and submitting tickets:
Payouts need to be enabled for the live environment. They work in the sandbox but until you actually go to the account status page and click on the link to enable it you will get the AUTHORIZATION_ERROR. It will ask you some questions. Answer them and get ready for them to email you back for a more complete description of how you are going to use their services. This can take a few days.
Do all the steps to verify your account as mentioned here.
After verifying your account. VERIFY YOUR BANK ACCOUNT! Your PayPal account is labelled as verified once you hook up that bank account and put money in, but you will still get a frustrating AUTHORIZATION_ERROR when trying to use Payouts. Because your bank account is not verified. Do the song and dance to verify your bank account. This can also take a few days. (I don't know what this looks like, they don't let me play with real bank accounts.)
Fund your account. Note, you will still get an AUTHORIZATION_ERROR (and not INSUFFICIENT_FUNDS) if your account is insufficiently funded to cover the amount you want to payout plus fees. (At least until you've funded your account the first time, since we've put money in we're getting successes and I've not fully tested all the failure cases in the live environment.)
That's it. But do not be in a hurry, it has been four days since we started trying to test the live environment before we got 'It Worked!' back. Aside from the ticket turn around time. Mind you, you can do a bunch of this in parallel so you might be able to cut it down to two days.

Answer 3

This is Avi from PayPal. I think you are correct in guessing that it is likely an issue with account credentials. Have you tried reaching out to Paypal's Technical Support and filing a ticket? To debug this, account credentials would be necessary and it would not be advisable to put live account credentials in public.

Answer 4

In my case the issue was that my PayPal business account was not 100% verified. I followed this guide (business option) and it worked straight away.
https://www.paypal.com/us/selfhelp/article/how-do-i-verify-my-paypal-account-faq444#business
In a few words, to verify your account simply go to the Profile icon next to "Log out" and complete the steps on your To-do list.