July 5, 2021

How to Integrate PayPal with Salesforce

Learn how to link PayPal with Salesforce step-by-step and enjoy the convenience of a simplified accounting process in business operations.

I. Understanding Salesforce and PayPal

CRM systems are designed to help businesses manage customer interactions and relationships. Payment processing, on the other hand, refers to the process of accepting and processing customer payments for goods or services. The synergy between these two components lies in the fact that CRM systems can be easily integrated with payment processing systems. This integration allows businesses to seamlessly accept and process payments while simultaneously tracking and managing customer interactions and behavior.

For example, when a customer makes a payment, the payment processing system can automatically update the CRM system to reflect the transaction. This update can include customer information such as contact details, purchase history, and payment preferences. The CRM system can then use this information to personalize future interactions with the customer, such as targeted marketing efforts and personalized product recommendations. By analyzing payment data, businesses can identify trends and patterns that may indicate issues such as late payments, disputes, or chargebacks. Armed with this information, businesses can take proactive steps to address these issues before they become larger problems.

PayPal Overview

PayPal is one of the most widely recognized and trusted online payment services that enables individuals and businesses to transfer money electronically. The company was founded in 1998, and over the years, it has altered the way people make online payments. Today, it boasts over 400 million active accounts, which are spread across more than 200 markets globally.

PayPal serves as a secure and reliable intermediary between the buyer and the seller. When you make a purchase using the tool, you never have to reveal your payment details to the seller, which has contributed significantly to its popularity. This level of security is particularly important when transacting with unfamiliar vendors online.

PayPal users can track their transaction history and access reports that help them monitor their spending. PayPal’s mobile app significantly contributed to its popularity. The company has invested heavily in its technology and infrastructure to deliver fast and reliable payment services to its users. This has made PayPal a default payment option for many businesses, ranging from small-scale e-commerce stores to large enterprises.

Using PayPal, you are able to:

  • Transfer money between your bank account and PayPal account.
  • Get a cash advance with your credit card, then transfer the money to your PayPal account.
  • Transfer money from your PayPal account to the recipient’s account to pay them directly.
  • issue a cheque to you for the amount owed on your PayPal account.
  • To utilize your PayPal account for offline transactions, get a PayPal debit card.

Salesforce is a highly popular and widely used cloud-based CRM platform that offers a range of features and benefits to businesses of all sizes and industries. Some of the standout features include robust reporting and analytics capabilities, customizable dashboards and workflows, seamless integration with third-party applications, and powerful marketing automation tools. Salesforce provides businesses with real-time data and insights, enabling them to make informed decisions and respond quickly to changing customer needs. The tool is known for its exceptional customer support and community, ensuring that businesses have the necessary resources to succeed with the platform.

The alliance between Salesforce and PayPal enables customers to connect their Salesforce accounts with their PayPal payment systems, streamlining the online payment process. Moreover, businesses can now use PayPal as a payment option within Salesforce's industry-leading CRM, enabling a flexible and integrated payment system.

II. Benefits of Integrating PayPal with Salesforce

So, what advantages can you expect after PayPal integration with your Salesforce org?

  • Businesses can configure payment options and modify them according to customer needs. For example, they can set up a recurring payment model or schedule payments according to their preferences. They can also reconcile errors without having to access an external system and set up a unique billing system or virtual terminal.
  • The integration provides secure access to client information, including payment methods and bank account transfers. PayPal is PCI compliant, meaning sensitive data is stored securely, ensuring data safety.
  • With a 360-degree view of customer transactions, businesses can track individual purchase histories and create targeted offers, and rewards, to better engage and retain customers. Businesses can leverage the PayPal transaction data to gain insights into customer behavior, and preferences, all of which can be used to develop targeted marketing campaigns and improve the overall customer experience.
  • Businesses can access real-time reports and live PayPal analytics, syncing this data with Salesforce accounts and contacts. This helps teams better understand their customers' payment histories and patterns, allowing them to make more informed decisions.
  • Businesses accept payments directly through their Salesforce account using the PayPal payment gateway. By doing so, they can speed up their payment processes, and provide their customers with a more convenient and frictionless experience. Payment refunds and cancellations can be easily managed directly in the Salesforce platform.
  • Automating sales and finance data synchronization is possible via integration. By synchronizing sales transactions with PayPal payment data users eliminate the need for manual data entry and reduce the risk of errors. This automation also allows businesses to improve their order fulfillment processes, as sales data can be accurately tracked and monitored throughout the lifecycle of the order.
  • Lastly, the integration improves reporting and analytics by providing businesses with easy access to data insights, including payment history, sales revenue, and customer behavior metrics. Businesses can use these insights to make informed decisions and improve their overall performance.

III. Preparing for the Integration

Salesforce and PayPal integration is a unique and complex process that requires a set of technical prerequisites to achieve successful integration. In order to bring the two platforms together, several essential requirements must be met to ensure a seamless work process and data flow between the two.

  • API Access: Salesforce requires the use of REST APIs, while PayPal uses both REST and Classic APIs. These APIs should be enabled and configured before integration.
  • Authentication: For Salesforce, this means using OAuth authentication and obtaining an access token. For PayPal, this means using API credentials, including an API username, password, and signature.
  • Data Mapping: Salesforce and PayPal use different field names and structures, which means that data mapping is essential for successful integration. This requires identifying the data to be mapped and deciding on the appropriate field mappings.
  • Workflow Automation: Besides data transfer, integrating Salesforce and PayPal also requires automation of workflows, such as the automated creation of PayPal transactions when certain actions occur in Salesforce. Workflow automation can be achieved through tools like Process Builder or third-party apps.
  • Testing: Prior to deployment, thorough testing should be conducted to ensure that the integration is working as intended. This requires testing every aspect of the integration including data transfer, workflow automation, authentication, and error handling.

PayPal Salesforce Data Flow

When a customer makes a purchase using PayPal, the data first flows into PayPal’s system. This information includes the customer's name, email address, shipping and billing address, and payment details. PayPal immediately encrypts and processes the data, ensuring its security and protection. Once the transaction is complete, PayPal sends a notification to Salesforce, automatically updating the customer's data in the Salesforce system.

The data exchange between PayPal and Salesforce is two-way, providing a holistic view of the customer's transaction history and account information. For example, if a customer updates their shipping address in Salesforce, that information is immediately transferred to PayPal, eliminating the risk of sending a package to the wrong address. Or, if a payment is refunded through PayPal, Salesforce is automatically updated to reflect that refund, preventing any discrepancies in financial records.

Such synergy not only streamlines the data flow between the two systems but also reduces the manual effort required to manage customer data across multiple platforms. Payments and transactions are automatically recorded, ensuring accuracy and efficiency, while also decreasing the likelihood of errors and fraud. Businesses easily manage their sales and payment records, improve customer engagement, and optimize their overall business operations.

IV. Step-by-Step Guide to PayPal Integration with Salesforce

Let’s overview the integration via PayPal cartridges. Salesforce and PayPal cartridges can work together seamlessly, helping e-commerce companies double sales while reducing costs.

There are two ways to make this merge. The first method involves using PayPal’s Instant Payment Notification (IPN) feature, which provides real-time data integration. This involves configuring PayPal to send notifications to a custom Salesforce REST API and Endpoint whenever a transaction is made. This method is perfect for businesses that require immediate and accurate updates on their sales data.

The second method involves using PayPal’s REST API to pull data from the PayPal account into Salesforce. This requires the development of a new Salesforce Apex batch class that pulls all transactions from the PayPal account at regular intervals, depending on the client’s preferences. The batch class is responsible for authorizing PayPal’s connected app, fetching transactions, and refreshing tokens, while the schedulable class handles job management.

You can also perform the integration using Chargent.

  • Install Chargent Transactions and Base in your Salesforce organization.
  • Set up Chargent following the detailed instructions in the Quick Start Guide.
  • If the Remote Site Settings in Salesforce aren't already activated for PayPal Payflow Pro to start the Payapal Salesforce Integration, you might need to do so for Chargent versions older than 5.57.
  • Select Settings by clicking the gear symbol in the upper right corner;
  • Select Remote Site Settings under Security;
  • Find PayflowProAPI, then select Edit;
  • Verify the “Active” box;
  • Select Save;
  • Similarly, handle PayflowProTestAPI.

Now, you can move on to connecting PayPal Payflow Pro and Salesforce.

  • Click the app launcher that you want to use in Salesforce.
  • Use the Search for Apps or Things box to find Gateways and choose them.
  • By selecting New, you can select Payflow Pro (PayPal) as the Gateway Type.
  • Map the Chargent fields using your Payflow Pro login credentials:
  • Merchant Login for Chargent Merchant Reference is obtained via Payflow Pro;
  • Password = Chargent Merchant Security Key (from Payflow Pro);
  • Chargent Merchant Reference is Payflow Pro's Partner ID. (The “PayPal” ID will be displayed for the test account; if you registered through a Bank instead of PayPal directly, it might not appear on the production account.)
  • Click the Active box to turn on the Gateway, and if you plan to use Payflow tokenization, click to confirm that;
  • From the list of possible card kinds, select the ones you will accept;
  • Check the PayFlow User Recurring Profiles checkbox in the Chargent Gateway record if you wish to use tokens for a period of time greater than 12 months.

After integrating PayPal with Salesforce, it is important to configure your fraud settings to ensure that you are protected from any potentially fraudulent transactions. Even if you have set up a test account, PayPal uses the same security measures as their regular accounts, to provide an experience as close to the live environment as possible.

Navigate to Service Settings and select Fraud Protection. From there, click on Test Setup and then Edit Standard Filters to change the settings as desired for testing and click Deploy. It is important to note that you may sometimes receive an error with the message “Under Review by Fraud Service” when submitting test transactions, which can be resolved by adjusting your fraud settings accordingly.

Next, you should set a maximum amount per transaction in your Account Administration to further protect against fraudulent activity. Simply go to Account Administration, then Transaction Settings, and set the maximum amount per transaction as desired to limit potential losses. Finally, you may need to whitelist your IP address for testing purposes. To do so, navigate to Service Settings once more and select Fraud Protection. From there, click on Manage Standard Filter Lists and edit the list to add your IP address to the allowed list.

Tokenization in Paypal Salesforce Integration

Tokenization is a security process that involves replacing sensitive payment data with unique tokens. This helps to protect the customer's sensitive payment data from being exposed to a potential data breach, thereby enhancing overall security. In the case of the Payflow Pro gateway, the tokenization process is implemented using both reference transaction tokens and recurring payment profiles.

Reference transaction tokens are generated by the Payflow Pro gateway using the ID of a previous transaction and are valid for up to 12 months. When a new transaction is initiated, the reference transaction token is used instead of the customer's sensitive payment data, thereby avoiding the need to expose the data again. With the reference transaction token, the Payflow Pro gateway is capable of retrieving all the necessary payment data from the previous transactions.

On the other hand, recurring payment profiles are payment agreements that authorize the Payflow Pro gateway to automatically bill a customer on a periodic basis without the need for manual authorization. In this process, the customer shares their payment information once, and the recurring payment profile is used to initiate charges in subsequent transactions. The recurring payment profile does not expire, making it a more reliable method of processing recurring charges against the customer's payment data.

However, recurring payment profiles don't support the authorization transaction type. Therefore, in cases where recurring payment profiles are enabled, reference transaction tokens are still used to initiate authorization transactions. By using both reference transaction tokens and recurring payment profiles, the gateway provides enhanced security, reliability, and convenience in payment processing.

By default, reference transactions are deactivated in PayPal Manager. To activate them, navigate to Account Administration > Transaction Settings. Within Salesforce, follow these steps:

  • When you set up the Chargent Gateway record for Payflow Pro, make sure the Use Tokenization checkbox is checked.
  • If you want to utilize tokens for more than a year, check the PayFlow utilise Recurring Profiles checkbox in the Chargent Gateway record.
  • Check the Handling Credit Cards field.

The value entered in the Credit Card Number field will be removed after your first successful charge, and a token will be saved for use in subsequent transactions. The Reference Transaction will be kept in the Token field following a successful transaction. The Customer Token field will be used to store PayPal's Profile ID.

V. Use Cases and Application Scenarios

Several companies across different industries have successfully integrated PayPal into Salesforce to improve their business processes and provide a better customer experience. One such company is Habitat for Humanity, a non-profit organization that partners with families to build affordable housing in different parts of the world. They integrated PayPal to enable secure donations and payments online, making it easier for people to contribute to their cause from anywhere in the world. This integration helps them to streamline their financial management and ensure transparency in the donation process.

Another example is Ticket Marvel, a ticketing and booking company that specializes in the sports and entertainment sector. Ticket Marvel has integrated PayPal with their Salesforce platform to simplify payment processing, improve cash flow, and enhance customer satisfaction. This integration allows them to automate invoice generation, track payment status, and reconcile transactions more efficiently. This, in turn, helps them to provide faster and more accurate service to their customers.

Additionally, Papaya Global, a leading platform for global payroll and HR management, has also integrated PayPal into its Salesforce org to offer clients a seamless payment experience. Their clients now can easily pay their international employees, while also keeping track of payroll data and tax compliance regulations in one centralized system.

VI. Troubleshooting and Common Challenges

One common issue that businesses may encounter when integrating Paypal with Salesforce is payment mismatches. This issue can occur when data is not synched in real time, leading to data discrepancies between the two systems. This problem can be resolved by ensuring that data synchronization is configured correctly and that both systems are communicating effectively.

Another issue that can arise is problems with refunds and chargebacks. These can occur if refunds are processed incorrectly or if chargebacks are initiated without proper authorization. To avoid these problems, businesses should ensure that all refund and chargeback processes are clearly defined and communicated to all relevant parties.

Data integrity issues can also occur during Paypal to Salesforce integration. This can happen when data is transferred incorrectly, leading to incomplete or corrupted records in Salesforce. To address this, conduct regular monitoring and checks to ensure data integrity.

Here are some tips to help you optimize your integration and avoid any potential issues:

  • Regularly check for new updates and upgrades to stay current with any changes to PayPal and Salesforce functionalities and avoid any compatibility issues.
  • Keep an eye on your integration activity and check for any errors or discrepancies in your transaction data.
  • To ensure that your integration is working smoothly, run regular tests on your integration setup, and monitor the results before any bugs impact your business operations.
  • Protect your integration setup with a secure connection and two-factor authentication preventing any unauthorized access or potential data breaches.
  • Make sure that all the members involved in your integration are properly trained in using the integration setup, and are aware of the proper protocols in case of any issues or errors.
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