Accept iDEAL payments

DocsCurrentLast updated: September 22nd 2023, @ 8:09:48 am


iDEAL is a payment method in the Netherlands that allows buyers to select their issuing bank from a list of options. The buyer experience, once they've been handed off to the issuing bank they selected, differs depending on the bank.

CountriesPayment typePayment flowCurrenciesMinimum amountRefunds
Netherlands (NL)bank redirectredirectEUR0.01 EURWithin 180 days

How it works

Alternative payment methods diagram
  1. Your checkout page offers alternative payment methods.
  2. Buyer provides their personal details and selects an alternative payment method from your checkout page.
  3. Buyer is transferred from your checkout page to the third-party bank to confirm the purchase.
  4. Buyer authorizes and confirms payment.
  5. Buyer returns to your site to see confirmation of purchase.
  6. Merchant initiates completion of payment. PayPal moves the funds to the merchant. Transaction shows in your PayPal account with the payment method the buyer used.

Eligibility

  • Available to merchants globally, except in Russia, Japan, and Brazil.
  • Billing agreements, multiple seller payments, and shipping callback are not supported.
  • Support for order capture only (order authorize is not supported). See authorized and captured payments.
  • Chargebacks are not supported.
  • Transaction must be an online purchase (buy online, pay in store is not supported).

Integrate

There are two integration paths you can take:

  • JS SDK integration - Merchants can collect payment information using PayPal hosted UI components, called payment fields components, for alternative payment methods.
  • Orders REST API integration - Allows you to fully customize the checkout experience.

  1. JS SDK
  2. Orders API

Use the JavaScript SDK to render payment fields and buttons and process payments with Orders API.

Buyer experience

Note: The payment button is disabled in the buyer experience demo. On button click, the user is redirected to their bank to authorize the transaction.

Know before you code

  • Complete the steps in Get started to get your sandbox account information from the Developer Dashboard:
    • Client ID
    • Client Secret
    • Business account credentials
  • Make sure the preference for receiving payments in your PayPal business account is set to accept and convert them to the default currency. To verify, in your profile select Account Settings > Payment preferences > Block payments and click Update to mark this preference.
  • This client-side and server-side integration uses the following:
  • Make sure you're subscribed to the following webhook events:
    • CHECKOUT.ORDER.APPROVED - Listen for this webhook and then capture the payment.
    • CHECKOUT.PAYMENT-APPROVAL.REVERSED - Listen for this webhook as an indication that an approved order wasn't captured within the capture window resulting in a cancellation of the order and a refund to the buyer's account. Then notify your buyer of the problem and the reversed order.
  • By adding funding sources to your checkout integration, you agree to the PayPal alternative payment methods agreement. This is in addition to the user agreement applicable to the country in which your business is physically located.

    Note: Integration steps for implementing alternate payment methods are similar. If an alternate payment method has been previously integrated, most of the code may be reused.

  • Use Postman to explore and test PayPal APIs.

Get up and running in GitHub Codespaces

GitHub Codespaces are cloud-based development environments where you can code and test your PayPal integrations. Learn more

1. Add PayPal JavaScript SDK

Add or update the JavaScript SDK script on your web page.

<script src="https://www.paypal.com/sdk/js?client-id=YOUR_CLIENT_ID&components=buttons,payment-fields,marks,funding-eligibility&enable-funding=ideal&currency=EUR"></script>

This table lists the parameters you pass to the JavaScript SDK.

Query param Default Description
client-id none Your PayPal REST client ID. This identifies your PayPal account and determines where transactions are paid.
components buttons A comma-separated list of components to enable. The buttons, payment-fields, marks, and funding-eligibility components are required for payment fields components.
enable-funding none The enabled payment methods to show in buttons and marks. 

Note: By default, PayPal JavaScript SDK provides smart logic to display only appropriate marks and buttons for the current buyer. This optional parameter bypasses the buyer country check for desired payment methods.

For example: src="https://www.paypal.com/sdk/js?client-id=YOUR_CLIENT_ID&enable-funding=venmo"

currency USD The currency for the transaction.
locale automatic The locale renders components. By default PayPal detects the correct locale for the buyer based on their geolocation and browser preferences. It is recommended to pass this parameter with a supported locale if you need the PayPal buttons to render in the same language as the rest of your site.
intent capture The intent for the transaction. This determines whether the funds are captured immediately while the buyer is present on the page.
commit true This indicates that the final amount won't change after the buyer returns to your site from PayPal.
vault false Whether the payment information in the transaction will be saved. Save your customers' payment information for billing agreements, subscriptions, or recurring payments. Marking this parameter false shows all funding sources, including payment methods that can't be saved.

See additional, optional parameters.

2. Render payment mark

You can use a mark integration for payment fields components to present the payment method options to the buyer as radio buttons.

paypal.Marks({
    fundingSource: paypal.FUNDING.IDEAL
}).render('#ideal-mark')

3. Render payment fields

Use payment fields to collect payment information from buyers. Fields dynamically render based on the selected funding source and you can customize the fields to align with your brand.

Choose from a single page checkout flow or a multi-page checkout flow.

  1. Single page
  2. Multi-page
For iDEAL, payment fields collect first name and last name.

If there are validation errors in the input fields, they'll show on the click of the button.

paypal.PaymentFields({
  fundingSource: paypal.FUNDING.IDEAL,
  /* style object (optional) */
  style: {
    /* customize field attributes (optional) */
    variables: {},
    /* set custom rules to apply to fields classes (optional) */
    rules: {},
  },
  fields: {
    /* fields prefill info (optional) */
    name: {
      value: "John Doe",
    },
  }
})
.render("#ideal-container");

For style parameters, please reference this style page: Custom style for payment fields

4. Render payment button

paypal.Buttons({
  fundingSource: paypal.FUNDING.IDEAL,
  style: {
    label: "pay",
  },
createOrder() {
    return fetch("/my-server/create-paypal-order", {
      method: "POST",
      headers: {
        "Content-Type": "application/json",
      },
      // use the "body" param to optionally pass additional order information
      // like product skus and quantities
      body: JSON.stringify({
        cart: [
          {
            sku: "YOUR_PRODUCT_STOCK_KEEPING_UNIT",
            quantity: "YOUR_PRODUCT_QUANTITY",
          },
        ],
      }),
    })
    .then((response) => response.json())
    .then((order) => order.id);
  },
  onApprove(data) {
    return fetch("/my-server/capture-paypal-order", {
      method: "POST",
      headers: {
        "Content-Type": "application/json",
      },
      body: JSON.stringify({
        orderID: data.orderID
      })
    })
    .then((response) => response.json())
    .then((orderData) => {
      // Successful capture! For dev/demo purposes:
      console.log('Capture result', orderData, JSON.stringify(orderData, null, 2));
      const transaction = orderData.purchase_units[0].payments.captures[0];
      console.log('Transaction Status:',  transaction.status);
      console.log('Transaction ID:', transaction.id);
      // When ready to go live, remove the alert and show a success message within this page. For example:
      // const element = document.getElementById('paypal-button-container');
      // element.innerHTML = '<h3>Thank you for your payment!</h3>';
      // Or go to another URL:  window.location.href = 'thank_you.html';
    });
  },
  onCancel(data, actions) {
    console.log(`Order Canceled - ID: ${data.orderID}`);
  },
  onError(err) {
    console.error(err);
  }
}).render("#ideal-btn");
  • createOrder

    Implement the createOrder function to allow the JavaScript SDK to submit buyer information and set up the transaction on the click of the button.

    Note: iDEAL requires orders to be created in a currency of EUR.

    Use your server-side Create order call to set up the details of a one-time transaction including the amount, line item detail, and more.

    If order creation fails, the Orders API can return an error in the console.

    After order creation, orders are confirmed with buyer-selected payment source. If the order cannot be processed with the selected payment source, the relevant errors are returned in the console.

  • onCancel

    Implement the optional onCancel() function to show a cancellation page or return to the shopping cart.

  • onError

    Implement the optional onError() function to handle errors and display generic error message or page to the buyers. This error handler is a catch-all. Errors at this point are not expected to be handled beyond showing a generic error message or page.

5. Capture the transaction

Implement the onApprove function, which is called after the buyer approves the transaction.

Captures the funds from the transaction and shows a message to the buyer to let them know the transaction is successful. The method is called after the buyer approves the transaction on paypal.com.

Because this is a client-side call, PayPal calls the Orders API on your behalf, so you don't need to provide the headers and body.

capture() - Promise returning the order details.

paypal.Buttons({
  fundingSource: paypal.FUNDING.IDEAL,
  createOrder() {
    return fetch("/my-server/create-paypal-order", {
      method: "POST",
      headers: {
        "Content-Type": "application/json",
      },
      // use the "body" param to optionally pass additional order information
      // like product skus and quantities
      body: JSON.stringify({
        cart: [
          {
            sku: "YOUR_PRODUCT_STOCK_KEEPING_UNIT",
            quantity: "YOUR_PRODUCT_QUANTITY",
          },
        ],
      }),
    })
    .then((response) => response.json())
    .then((order) => order.id);
  },
  onApprove(data) {
    return fetch("/my-server/capture-paypal-order", {
      method: "POST",
      headers: {
        "Content-Type": "application/json",
      },
      body: JSON.stringify({
        orderID: data.orderID
      })
    })
    .then((response) => response.json())
    .then((orderData) => {
      // Successful capture! For dev/demo purposes:
      console.log('Capture result', orderData, JSON.stringify(orderData, null, 2));
      const transaction = orderData.purchase_units[0].payments.captures[0];
      console.log('Transaction Status:',  transaction.status);
      console.log('Transaction ID:', transaction.id);
      // When ready to go live, remove the alert and show a success message within this page. For example:
      // const element = document.getElementById('paypal-button-container');
      // element.innerHTML = '<h3>Thank you for your payment!</h3>';
      // Or go to another URL:  window.location.href = 'thank_you.html';
    });
  }
}).render('#ideal-button-container');
//This function displays payment buttons on your web page.

For the capture call details and example responses, see Capture payment for order in the Orders API reference.

If order capture fails, the Orders API can return an error in the console.

6. Handle webhook events

A webhook handler is a script you create on your server that completes specific actions on webhooks that hit your listener URL.

  • We recommend subscribing to CHECKOUT.ORDER.APPROVED webhook event in case a customer accidentally closes the browser and exits the checkout process after approving the transaction through their APM but before finalizing the transaction on your site.
  • Listen for the CHECKOUT.PAYMENT-APPROVAL.REVERSED webhook as an indication that an approved order wasn't captured within the capture window resulting in a cancellation of the order and a refund the buyer's account. Then notify your buyer of the problem and the reversed order.
  • PAYMENT.CAPTURE.PENDING, PAYMENT.CAPTURE.COMPLETED, and PAYMENT.CAPTURE.DENIED webhooks indicate capture status.

See Subscribe to checkout webhooks for more information.

Here are some additional resources as you create webhook handler code:

Sample integration

See a sample iDEAL integration in the PayPal GitHub repository.

Next steps