
Billing Agreements and Reference Transactions
About Billing Agreements
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20 Express Checkout for Payflow
About Billing Agreements
A billing agreement allows PayPal to withdraw funds from the buyer’s PayPal account
without requiring the buyer to log in to PayPal. Billing agreements are maintained by PayPal.
You must establish a billing agreement with a buyer if, for example, you and the buyer agree
that you will bill that buyer on a regularly scheduled basis such as monthly for a magazine
subscription. Before a billing agreement can take effect, the buyer must log in to PayPal once
to consent to it. With buyer consent, PayPal creates a billing agreement ID (BAID) to
represent the agreement. You pass the BAID in subsequent requests to bill the buyer. PayPal
withdraws funds without requiring the buyer to log in. A billing agreement is good until you or
the buyer cancels it.
A buyer may have multiple magazine subscriptions, each with a separate billing agreement. In
such cases, be sure to associate each transaction with the correct billing agreement.
About Billing Types
To specify how the buyer will be billed, you set the billing type in the call to Set Express
Checkout.
Table 2.1describes the values of this parameter:
Ways To Obtain a BAID
You can obtain a BAID whether or not the buyer logs in to PayPal to make a purchase. The
following sections describe how.
TABLE 2.1 Billing type values
Value Description
MerchantInitiatedBilling Use to obtain a BAID in the Express Checkout flow. To initiate
billing the buyer one or more times, call Do Express Checkout
Payment outside the Express Checkout flow and pass the BAID
to bill the buyer.
RecurringBilling Use to obtain a BAID for creating a recurring billing profile to
bill the buyer on a recurring basis.
See the Payflow Pro
Recurring Billing Service User’s Guide for details on using the
BAID to create a recurring billing profile.
RecurringPayments Use to obtain a TOKEN for creating a recurring payments profile
to bill the buyer on a recurring basis.
NOTE:This billing type does not create a BAID. See PayPal
Payments Pro Payflow Edition - Recurring Payments
Developer’s Guide for details on using this billing type
value to create a Recurring Payments profile.
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