Introduction to PayPal Payments

Authorization and Capture

Authorization & Capture, or Auth/Capture, allows you to authorize the availability of funds for a transaction but delay the capture of funds until a later time. This is often useful for merchants who have a delayed order fulfillment process. Authorize & Capture also enables merchants to modify the original authorization amount due to order changes occurring after the initial order is placed, such as taxes, shipping or gratuity. (More about authorization and capture)

Recurring Payments

PayPal Recurring Payments allows you to bill a buyer for a fixed amount of money on a fixed schedule. (More about recurring payments)

Note You can also setup another form of recurring payments using reference transactions to handle payments for varying amounts of money on a varying schedule.

Reference Transactions

A reference transaction is a financial transaction from which subsequent transactions can be derived. For example, a buyer purchases an item on your site, and you use the PayPal transaction ID or reference transaction ID later to initiate another transaction. Reference transactions and billing agreements also enable you to handle recurring payments for varying amounts of money on a varying schedule. (More about reference transactions)


You can refund the entire amount of a transaction or portions of it. The process to issue a refund within the first 60 days of payment differs from the process followed after 60 days has passed. (More about refunds)


PayPal provides you with various reports to help you run your business. (More about reporting)