WooCommerce set up PayPal Identity Token instead of IPN

Updated 15 October 2018

Paypal is a commonly used method of accepting payments from a WooCommerce powered ecommerce store. There are a few tricks to getting WooCommerce set up for use with Paypal. My previous blog post went over how to set up PayPal with WooCommerce and setting up Instant Payment Notifications. In this post I’ll show you how to set up Payment Data Transfer.

Normally WooCommerce and PayPal communicate via PayPal’s Instant Payment Notifications (IPN). We can set up PayPal’s Payment Data Transfer. This will allow PayPal and WooCommerce to pass data between them without the need for IPN. You can also issue refunds right from the WooCommerce dashboard.

To set it up, login into your WooCommerce store’s admin area. Then click Settings under the WooCommerce menu item in the left hand menu.


Once you are in the settings area, click on the Checkout tab at the top of the page. Then click on the PayPal link at the end of the blue links just underneath the tabs.


Scroll down to the Advanced Options heading. Here you can find the PayPal Identity Token input area. If you hover your mouse pointer over the small question mark you get a brief explanation of the PayPal Identity Token and how to get your PayPal API key.

To get your PayPal API log into your PayPal account.

Then click on the My Account tab at the top. Then click the Profile & Settings link in the drop down menu.

WooCoimmerce Paypal Login and set up IPN

Then click the My Selling Tools link in the sidebar.

Next to the sidebar there will be a list of options you can edit. Find the Website preferences preference and click the update link next to it.

This brings up the Website preferences page. Here you can set the Auto return for your WooCommerce site. It must be on for Payment Data Transfer to work. The url should be set to:


The section that we want is Payment Data Transfer.

Turn the Payment Data Transfer radio buttons to on.

Then copy the Identity Token directly underneath.

Now go back to your WooCommerce Paypal settings page.

Paste the Identity Token into the PayPal Identity Token input area. Scroll to the bottom and click the Save Changes Button.



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