
Merchant User Manual and Integration Guide May, 2005 105
Backend Integration - Payment Notifications
Instant Payment Notification (IPN)
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so you can be sure the IPN came from PayPal. Upon verification, PayPal will send your server
a “VERIFIED” or “INVALID” response.
Step 5: When you receive a VERIFIED response, you need to perform several checks before
fulfilling the order.
NOTE: An INVALID response could be due to inaccurate or incomplete IPN data being
posted back to PayPal. However, an INVALID response should be treated as
suspicious, and should be investigated.
z Confirm that the payment status is Completed, since IPNs are also sent for status types
such as Pending or Failed.
z Check that the transaction ID is not a duplicate — this prevents a fraudster from using an
old, completed transaction.
z Validate that the receiver_email is truly your account — this prevents the payment
from being sent to a fraudster’s account.
z Check other transaction details, such as item number and price, to confirm that the price
hasn’t been changed.
Step 6: After successfully completing the checks, you can update your database with the IPN
data and process the purchase.
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