Reference Transactions basically enable your PayPal Account to charge your clients’ PayPal accounts on an on-demand basis using our module – as if you had a credit card number – giving you authorization to charge it when agreed upon. The only requirement of this module is that Reference Transactions are enabled on your account.
Since sometimes this results in higher disputes because customers are not expected to be automatically billed if you don’t simply make them aware, PayPal does require a certain level of vetting before you can be approved for Reference Transactions.
Vetting rules can be different depending on business type, credit risk, jurisdiction, etc – so there is no plain and simple guidlines we can lay out. As each merchant is different, the requirements will change so it’s impossible to list them for certain here.
Although the process may seem daunting, it really isn’t. Just contact Paypal using web or phone as listed below, and see how it goes! 80% of our module clients get immediately approved and can begin processing right away. For the other 20%, whether because of the country they are in, their business situation or their credit as PayPal sees it, the process may take a little longer and/or require certain business forms, like sales figures, etc to establish stability of the business.
All of our clients who are approved and able to use this module have told us it was very worth it to apply, and even overcome obstacles with PayPal if need be, to get approved. The pros far outweigh the cons, as once you are approved, you’ll be able to automatically process all PayPal payments, making your billing setup a painless well-oiled machine!
Contacting PayPal to Enable Reference Transactions
- Use the following steps below to either call PayPal or open a support ticket with them to enable reference transactions.
- Once PayPal receives the ticket or your phone call, they will submit a support ticket to their internal team for approval. Their approval process took less than 24 hours. The norm should be less than a week. You will receive an email once the approval process is complete notifying you that you’ve been approved.
- Once you’re approved, no action is necessary, you’re set to go!