PayPal Account Setup / Troubleshooting

Step 1:  Check to make sure Encrypted Website Payments Are Not Required

If you see an error like this:


Your PayPal account is set to only accept Encrypted Buttons.

DPD uses payment amount verification instead of button encryption to protect your downloads.  Your PayPal account my be set to only accept encrypted payment button requests from using other systems, so here are the instructions to disable the encryption requirement:

  1. Log in to your PayPal account
  2. Click on Profile
  3. Click on My selling tools
  4. Click on Update next to Website preferences
  5. On the page Website Payment Preferences scroll down and you will find the section on Encrypted Website Payments. Where it says Block Non-encrypted Website Payment select OFF
  6. Then at the bottom of the page click Save

This will still allow encrypted buttons to work, but it will not require them.  DPD's advanced features can now be used with PayPal. 

Step 2:  Check to make sure Payments from Unverified Accounts are Allowed

If your PayPal products (both storefront and standalone) are not activating for customers when they purchase them the likey culprit is a setting in your PayPal account that requires you to manually verify and approve purchases from "Unverified Accounts."

To disable this manual verification and allow DPD to automatically authorize downloads for all your paying customers, perform the following steps:

  1. Log in to your PayPal account.
  2. Click on the Profile link from your PayPal overview screen
  3. Click on My selling tools
  4. Click on Update next to Block payments
  5. Set Block Payments for the items not sold on eBay from U.S. users who do not provide a Confirmed Address to No.
  6. Click on Save

This change will allow DPD to automatically verify payment without your intervention for all payments, including payments from new PayPal accounts without a verified address.

Step 3:  Make sure PayPal does not automatically apply shipping to digital (download) orders

Please follow the steps in this KB article to allow transaction overrides of shipping charges.

Step 4:  Disable Payment Data Transfer in your PayPal Account

Having the Payment Data Transfer settings enabled in your PayPal account will prevent DPD from getting the instant Payment Notification (IPN) from PayPal.   Without this notification we can not authorize a download, so this option must be set to off:

Please check the following:

  1. Log in to PayPal
  2. Click on the Profile link from your PayPal overview screen
  3. Click on My selling tools
  4. Click on Update next to Website preferences
  5. Make sure Payment Data Transfer is set to OFF

Step 5:  Set your IPN Character Encoding

DPD automatically configures most PayPal features through variables passed with the transaction.   However, one item that we can not automatically configure is the characterset that your IPN data is transferred to DPD in.   For DPD to work for buyers from all countries where buyer names, street names, cites, etc.  may contain special characters you must set PayPal to send IPN data in UTF-8 format.   This is becuase UTF-8 supports these special characters, and DPD is designed to read UTF-8 IPN data for maximum compatablity.

To set your IPN data to send in UTF-8 Format:

  1. Log in to PayPal 
  2. Click on Profile 
  3. Click on My selling tools
  4. At the bottom of the page in the More selling tools box, click on PayPal button language encoding 
  5. On the Language Encoding page, click More Options to open the extended options. 
  6. For the question Do you want to use the same encoding for data sent from PayPal to you (e.g., IPN, downloadable logs, emails)? select No, Use and pick UTF-8 as the encoding type for your IPNs and click Save. 

Accurately setting these options in your PayPal account resolve 95% of all PayPal delivery issues. 

If you have checked the 5 items in this list and still have issues please contact DPD support for assistance. 

Have more questions? Submit a request


  • Avatar
    Anita Kirkman

    With all of these features being disabled, how trustworthy and safe will transactions be for our clients?

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    Jason Chance

    Hello, DPD verifies the total paid with PayPal before we release the download, and in the case of a random chargeback or refund will automatically disable the download without your intervention.  

    The only additional exposure you might have to chargeback or fraud would come with Step 2, requiring verified shipping addresses for all orders.  You can turn this on or off as you wish, but I should warn you that requiring a verified shipping address will drastically limit the number of people that can complete checkout with your store, lead to higher abandonment if people need to verify their address (not an instant process and requires a credit card number on their PayPal account), and may confuse buyers if they're being asked to verify an address for an instant digital delivery.

  • Avatar
    Dorna Revie

    I use my paypal account for transactions on another website.  Will disabling these features make my other website vulnerable.

  • Avatar
    Elaine Calloway

    There is not a section in Paypal that you describe, so not sure what to do...

  • Avatar
    Customcdcreations repairmanualsoncd

    I have stopped receiving payment notifications a long time ago from DPD, all of my settings are correct yet it seems no one here has the answer as to why DPD stopped sending the notifications. I just about ready to move to another company.

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