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billwerk supports the Reference Transactions procedure.

In order to use PayPal as a payment method, PayPal must activate this procedure for your merchant account. A normal merchant account without activation for the Reference Transaction procedure is not sufficient for recurring payments.

Reference Transactions is more pleasant for recurring payments, because there are no time limitations and no limitations on the total amount of money. The customer has to authorize the payments inside the PayPal standard checkout and from this moment, recurring payments can be disposed from the customer PayPal account.

Important: In order to use Reference Transactions, you must request the function from PayPal. There will be a check on PayPal's part to protect the process from abuse. Prerequisites for Reference Transactions are, for example, proof of the details of your company and the existing business activity. For the activation of Reference Transactions, PayPal PayPal additionally has high requirements regarding the minimum turnover. To learn more about Reference Transactions and the approval process, please contact PayPal. More information about the Reference Transactions interface can be found here:


ProcessPaymentData method

Please be aware before starting your implementation of SubscriptionJS on your sign up page, that the ProcessPaymentData method is not supported by this PSP.

Setting up a testaccount on PayPal sandbox

You can find all the information how to set up the PayPal sandbox on the PayPal developer website. After receiving testaccount data for a merchant and a customer, you can save the merchant account data in your billwerk sandbox account.

After setting in billwerk for PayPal "PayPal Server: Sandbox", billwerk communicates at all times with this server. In this case, you have to set the test merchants API data (username, password and signature), which you can find at in section 'Sandbox/Accounts'.

Please consider in both test account settings to set the country on "DE".

For further information please see the PayPal documentation: Non-US developers can find a different procedure.

Remember, that you can only use customer accounts which are registered on the PayPal sandbox. Genuine accounts don't work in this environment.

Later, when you want to test live PayPal payments during the integration process, you have to configure in your billwerk account the PayPal settings to "PayPal Server: Live" and save your API live account data.

Configuration inside your billwerk account

You can find paypal settings inside billwerk in "Settings > Payment > Payment Settings > PayPal".


API type:

  • Merchant (Reference Transactions) if your merchant account has been activated for Reference Transactions

PayPal server:

  • Sandbox: If you want to make test payments on the PayPal Sandbox

  • Live: If you want to make real payments on the PayPal Live environment

Reference Transactions:

Please enter the following data, which you will find in your PayPal account:

  • API Username

  • API Password

  • API Signature

Optional functions:

  • Request Billing Address: Activate this function if you want to retrieve the billing address of your customer stored with PayPal and transfer it to the billing address in billwerk. This function must then also be activated in your PayPal account. Please contact PayPal.

  • Reject unverified PayPal accounts: Activate this function if you do not want to accept PayPal customer accounts that have no means of payment stored in PayPal. Payments from unconfirmed PayPal accounts will fail.

Configuration of your PayPal accounts

Reference Transactions

No further settings need to be made in your merchant portal to use Reference Transactions.