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Integrating PayPal Payment Gateway with PHP

If you want to allow users on your website to make payments then PayPal is the best and the simplest option. Today we will see how to integrate PayPal payment gateway with your PHP online store. We will use the IPN(Instant Payment Notification) service of PayPal for processing the payments. PayPal sends responses for all payment actions(make payment, accept payment, refund payment, cancel payment) to the IPN URL set in your PayPal account settings. So lets go step by step and see how the whole process is done.

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Step 1: Create a PayPal Sandbox account at https://developer.paypal.com/.

Step 2: Create two test accounts under this Sandbox account. One account will be for buyer and other for seller. You should select the 'Preconfigured test accounts' for simplicity.


Step 3: Enabling IPN
  • To enable IPN, go to the 'Test site' of the seller account(see below screenshot).
  • Now click on the 'Profile' menu link and then click on 'Instant Payment Notification Preferences'(see below screenshot).

  • Edit the IPN settings, add your IPN URL in the URL textbox and click on Save(see below screenshot).

Step 4: payments table 
CREATE TABLE `payments`
(
`payment_id` int(11) AUTO_INCREMENT PRIMARY KEY,
`item_id` int(11),
`invoice_id` int(11),
`amount` float(10,2),
`amount_refunded` float(10,2),
`amount_refunded` float(10,2),
`transaction_id` varchar(125),
`status` varchar(10)
)
Step 5: The Products page
Our product page will contain a separate form for each product. The details in the forms will be product specific. 
<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=windows-1252" />
<title>WebSpeaks.in | Paypal Integration with PHP</title>
<link rel="stylesheet" type="text/css" href="style.css" />
</head>
<body>
<?php
$paypal_url = 'https://www.sandbox.paypal.com/cgi-bin/webscr';
$paypal_id = 'bhardw_1325263769_biz@yahoo.co.in';//This is your seller id

$cancel_url = 'http://demos.frnzzz.com/paypal/store/index.php?action=cancel';
$return_url = 'http://demos.frnzzz.com/paypal/store/';

$products = array();
$products[] = array('id'=>156,'name'=>'Motorola 156 MX-VL','price'=>15, 'special_price'=>7, 'image'=>'laptop.gif'); 
$products[] = array('id'=>157,'name'=>'Iphone Apple','price'=>12, 'special_price'=>10, 'image'=>'p4.gif'); 
$products[] = array('id'=>158,'name'=>'Samsung Webcam','price'=>10, 'special_price'=>5, 'image'=>'p5.gif'); 
?>
<div id="main_container">
 <div id="header">
        
        <div id="logo">
            <a href="index.html"><img src="images/webspeaks.gif" alt="" title="" border="0" width="260" height="140" /></a>
     </div>
        
    </div>
    
   <div id="main_content"> 
    
 <div class="center_content">
  <div class="center_title_bar">Latest Products</div>

  <?php
  foreach($products as $product){
  ?>
   <div class="prod_box">
    <div class="top_prod_box"></div>
    <div class="center_prod_box">            
      <div class="product_title"><a href="#"><?php echo $product['name'] ?></a></div>
      <div class="product_img"><a href="#"><img src="images/<?php echo $product['image'] ?>" alt="" title="" border="0" /></a></div>
      <div class="prod_price"><span class="reduce"><?php echo $product['price'] ?>$</span> <span class="price"><?php echo $product['special_price'] ?>$</span></div>                        
    </div>
    <div class="bottom_prod_box"></div>             
    <div class="prod_details_tab">
     <form id='payment_form' action='<?php echo $paypal_url ?>' method='post' name='payform' />
      <input type='hidden' name='business' value='<?php echo $paypal_id ?>' />
      <input type='hidden' name='cmd' value='_xclick' />
      <input type='hidden' name='amount' value='<?php echo $product['special_price'] ?>' />
      <input type='hidden' name='no_shipping' value='0' />
      <input type='hidden' name='item_name' value='<?php echo $product['name'] ?>' />
      <input type='hidden' name='item_number' value='<?php echo $product['id'] ?>' />
      <input type='hidden' name='invoice' value='WS-<?php echo $product['id'] ?>' />
      <input type='hidden' name='currency_code' value='USD' />
      <input type='hidden' name='cancel_return' value='<?php echo $cancel_url ?>' />
      <input type='hidden' name='return' value='<?php echo $return_url ?>' />
      <input type='image' src='https://www.sandbox.paypal.com/en_US/i/btn/btn_buynow_SM.gif' name='submit' style='display:{$display_button}' />
     </form>   
    </div>                     
   </div>
  <?php
  }
  ?>

 </div>
   </div>

</div>
<!-- end of main_container -->
</body>
</html>
Step 6: The payment process page
process_payment.php 
<?php
$paypal_response = $_REQUEST;

//Check if it is the response from PayPal
if ( isset( $paypal_response ) ) {

 $tx = $paypal_response['tx'];//Transaction code
 $st = strtolower($paypal_response['payment_status']);//Payment status
 $amount = $paypal_response['mc_gross'];//Amount
 $cc = $paypal_response['mc_currency'];//Currency code
 $item_number = $paypal_response['item_number'];//Item number
 $invoice_id = $paypal_response['invoice'];

 $user_email = 'bhardwajsonheight@gmail.com';

 $site_name = 'WebSpeaks.in Test Store';
 $eol = "\r\n";
 $headers  = 'MIME-Version: 1.0' . $eol;
 $headers .= 'Content-type: text/html; charset=iso-8859-1' . $eol;
 $headers .= 'From:' . $site_name . ' <store@webspeaks.in>'. $eol;
 $headers .= 'Reply-To:' . $site_name . ' <store@webspeaks.in>' . $eol;
 $headers .= 'Return-Path:' . $site_name . ' <store@webspeaks.in>' . $eol;

 $eol = "\r\n<br />";
 $thanks_text = $eol.$eol.'Thanks!'. $eol;

 if($st == 'completed'){//Payment has been completed successfully

  //Update payment in DB
  mysql_query("UPDATE payments SET `status`='complete', `amount`='".$amount."' WHERE `invoice_id`='".$invoice_id." AND `item_id`='".$item_id."')");

  //Send succes email to user
  $email_tpl = 'Hello Buyer,' . $eol;
  $email_tpl .= "We have received your payment of $amount $cc." . $eol;
  $email_tpl .= "Thanks for the purchase." . $eol;
  $email_tpl .= $eol . $thanks_text;

  mail ($user_email, 'Payment Received', $email_tpl, $headers);

 }elseif($st == 'pending'){//Payment is pending for approval

  //Enter payment in DB
  mysql_query("INSERT INTO payments (`item_id`, `invoice_id`, `amount`, `transaction_id`, `status`) VALUES ('".$item_number."', '".$invoice_id."', '".$amount."',  '".$tx."', 'pending')");

  $email_tpl = 'Hello Buyer,' . $eol;
  $email_tpl .= "Your payment of $amount $cc is pending for approval. We will process it soon." . $eol;
  $email_tpl .= $eol . $thanks_text;

  mail ($user_email, 'Payment Pending', $email_tpl, $headers);

 }elseif($st == 'refunded'){//Payment is refunded after approval

  //Update payment in DB
  mysql_query("UPDATE payments SET `status`='refunded', `amount_refunded`='".$amount."' WHERE `invoice_id`='".$invoice_id." AND `item_id`='".$item_id."')");

  $email_tpl = 'Hello Buyer,' . $eol;
  $email_tpl .= "Your payment of $amount $cc has been refunded." . $eol;
  $email_tpl .= $eol . $thanks_text;

  mail ($user_email, 'Payment Pending', $email_tpl, $headers);

 }elseif($st == 'reversed'){//Payment is refunded before approval or it has been cancelled

  $reason = strtolower($paypal_response['reason_code']);//Reason for payment reversal

  if($reason == 'refund'){//Payment is refunded before approval
   //Update payment in DB
   mysql_query("UPDATE payments SET `status`='refunded', `amount_refunded`='".$amount."' WHERE `invoice_id`='".$invoice_id." AND `item_id`='".$item_id."')");

   $email_tpl = 'Hello Buyer,' . $eol;
   $email_tpl .= "Your payment of $amount $cc has been refunded." . $eol;
   $email_tpl .= $eol . $thanks_text;

   mail ($user_email, 'Payment Refunded', $email_tpl, $headers);

  }elseif($reason == 'other'){//Payment has been cancelled
   //Update payment in DB
   mysql_query("UPDATE payments SET `status`='cancelled' WHERE `invoice_id`='".$invoice_id." AND `item_id`='".$item_id."')");

   $email_tpl = 'Hello Buyer,' . $eol;
   $email_tpl .= "Your payment of $amount $cc has been refunded." . $eol;
   $email_tpl .= $eol . $thanks_text;

   mail ($user_email, 'Payment Cancelled', $email_tpl, $headers);

  }

 }
}

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