In this tutorial, we will just store information received from PayPal using IPN listener script, but you can program your own script to do lot more. Your IPN script works in background and has no direct contact with the customer, you just have to point IPN Url to this script from your Paypal IPN settings. How IPN works Lets say, a customer buys a product from your website and your database captures the transaction, but the fund is pending, only after few days buyer realizes this and authorizes the payment in his PayPal account, how will you update this in your database? will you wait for PayPal to send you email or have your IPN script track this user action instantly? I wouldn't worry if it's just 1 or 2 products, but imagine dealing with hundreds of customers.PayPal can send $_POST variables to your script, containing various information about your customer transaction, your script should collect these values and use them to update or insert database records.
In my experience, you do not necessarily need to setup Paypal Instant Payment Notification (IPN), but if want to automate tasks and keep track of customer actions back in their PayPal account, you should create and setup an IPN listener script. Written by Saran on July 23, 2012, Updated January 8, 2014This is continuation of the previous post how to setup Paypal Express Checkout in your website.
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