1. Sneak Peak: PayPal’s New API Interface (Processing PayPal Transactions Through the Payflow Gateway) Brian Sparr Manager, Sales Engineer PayPal, Inc.

2. 2 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. Agenda  Understand the acquisition  Understand PayPal transactions  Understand how the gateway processes PayPal transactions  Understand the benefits of the gateway

3. 3 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. The Acquisition: VeriSign Payment Services  Web Access  Web POS  Hosted Sites  Connectivity to pymt system  Auth / Capture BuyerBrandsGatewaySellerProcessorAcquirer Leading Providers: Principal Role:  Processing  Settlement  Underwrite risk  Payment instruments  Authorize.net  VeriSign  CyberSource  Visa  MasterCard  Am Express  Discover  Banks / echeck  Yahoo  GoDaddy  Affinity  Chase  Wells Fargo  Bank of America  First Data  Vital  Paymentech ISP/Cart Gateway, Acquirer and Processor All-in-one solution

4. 4 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal Transactions Credit Card Transaction funded by a credit card that is not necessarily tied to a PayPal account. Our goal is to allow every merchant the ability to process credit cards and PayPal transactions regardless of their implementation method. PayPal Transaction funded by a PayPal account. A merchant will not know the funding instrument behind the transaction.

5. 5 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. Current PayPal Integrations ProductPayPalCredit Card Pro (API-based) Express Checkout (EC) DirectPayment (DP) Standard (Hosted) Web AcceptAccount Optional

6. 6 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. Payflow Gateway Integrations ProductPayPalCredit Card Payflow Pro (API-based) Express Checkout (EC) Payflow Pro Payflow Link (Hosted) Express Checkout (EC) Payflow Link ** EC is routed through the gateway **

7. 7 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal Transactions through the Payflow Gateway Payflow Pro -Express Checkout (EC) transactions can now be routed through the gateway -Software does not change -Protocol does not change -New TENDER type has been added: “P” -New ACTION parameter has been added: -“S” for setting a token -“G” for getting the payment details -“D” for doing the transaction

8. 8 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. Express Checkout Flow

9. 9 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal transactions through the gateway  ACTION=S  Request  TRXTYPE=S&ACTION=S&TENDER=P&PARTNER=partner&PWD=password&USER=user&VE NDOR=vendor&AMT=11.00&RETURNURL=http://www.return.com&CANCELURL=http://w ww.cancel.com  Response  RESULT=0&RESPMSG=Approved&TOKEN=EC-6HS16561WR135862G  ACTION=G  Request  TRXTYPE=S&ACTION=G&TENDER=P&PARTNER=partner&PWD=password&USER=user&VE NDOR=vendor&TOKEN=EC-6HS16561WR135862G  Response  RESULT=0&RESPMSG=Approved&AVSADDR=N&TOKEN=EC- 6HS16561WR135862G&PAYERID=567TAN7WTWYCJ&EMAIL=testalex- vps@paypal.com&PAYERSTATUS=verified&FIRSTNAME=Daphne&LASTNAME=Watson&SHI PTOSTREET=123 Test Ave&SHIPTOCITY=Santa Clara&SHIPTOSTATE=CA&SHIPTOZIP=95050&SHIPTOCOUNTRY=US  ACTION=D  Request  TRXTYPE=S&ACTION=D&TENDER=P&PARTNER=partner&PWD=password&USER=user&VE NDOR=vendor&AMT=11.00&token=EC- 6HS16561WR135862G&PAYERID=567TAN7WTWYCJ  Response  RESULT=0&PNREF=EFHP0D25F003&RESPMSG=Approved&AVSADDR=N&TOKEN=EC- 6HS16561WR135862G&PAYERID=567TAN7WTWYCJ&PPREF=9HP63657XG8208520&FEEA MT=0.62&PAYMENTTYPE=instant&PENDINGREASON=completed

10. 10 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal transactions through the Payflow gateway #!C:\Perl\bin\perl –w use PFProAPI qw(pfpro); sub requestToken { my $params = shift; my $host = “payflow.verisign.com”; my $port = 443; my $timeout = 30; AddTrxParams($params); my ($resp, $respstr) = pfpro($params, $host, $port, $timeout); return ($resp->{‘RESULT’} == 0) ? $resp->{‘TOKEN’} : 0; } PERL Example

11. 11 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal transactions through the Payflow gateway #include “pfpro.h” string requestToken(string sParams) { string sResp; int iCtx = 0; char *tmpResp = NULL; pfproInit(); pfproCreateContext(&iCtx, “payflow.verisign.com”, 443, 30, NULL, 0, NULL, NULL); pfproSubmitTransaction(iCtx, (char *)sParams.c_str(), sParams.length(), &tmpResp); sResp = tmpResp; pfproCompleteTransaction(tmpResp); pfproDestroyContext(iCtx); pfproCleanup(); return sResp; } C++ Example

12. 12 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal transactions through the Payflow gateway import com.Verisign.Payment.PFProAPI; class PFProJava { public String requestToken(String sParams) { PFProAPI trx = new PFProAPI(); trx.SetCertPath( “certs” ); trx.CreateContext( “payflow.verisign.com”, 443, 30, NULL, 0, NULL, NULL ); String sResp = trx.SubmitTransaction( sParams ); trx.DestroyContext(); return sResp; } Java Example

13. 13 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal transactions through the Payflow gateway Payflow Link -Express Checkout (EC) has been integrated into the hosted flow -FORM parameters do not need to change -FORM “action” needs to point to new PayPal URL

14. 14 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. PayPal transactions through the Payflow gateway HTML Example ** METHOD is an optional parameter. If it is set to “P“, the transaction will be funded with a PayPal account. If it is set to “C”, the transaction will be funded with a credit card. If no METHOD is set, the customer will be prompted to select either PayPal or credit card. **

15. 15 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. Benefits of using the Payflow gateway integration  Potentially easier integration  Consolidated reporting  “Reference Transaction” functionality on credit card payments  “Recurring Billing” functionality on credit card payments  Combination of gateway’s Fraud Protection Service and PayPal’s internal fraud models  More options  SDKs for additional operating systems and programming languages  Web Service option that does not require SOAP  Reporting API for retrieving scheduled and ad hoc reports

16. 16 © 2006 PayPal Inc. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Other trademarks and brands are the property of their respective owners. Common Payflow gateway integration obstacles  RESULT=1 (User authentication failed)  This error is generally caused by submitting invalid PARTNER, VENDOR, USER and/or PWD parameters  This error can also occur when a merchant changes their password but doesn’t update their shopping cart or application accordingly  RESULT=-31 (Certificate chain failed to validate, no certificate found)  This error is generally caused because the Payflow Pro client is unable to locate the certificate file provided with the SDK. An environment variable, PFPRO_CERT_PATH, needs to be set and contain the path to the location of the cert file. The ideal response is a RESULT=0 or a RESULT=12 which indicates the transactions was either approved or declined.