Why do I need Reference Transactions?

Problem Statement

You want to understand why do i need reference transactions.

Solution

Chargebee supports PayPal as a payment method for processing subscription payments through the PayPal Express Checkout gateway.

In order to use your PayPal Express Checkout gateway account with Chargebee, your account needs to have the Reference Transaction feature enabled. You would need to reach out to PayPal Customer Support to get this enabled on your account.

For security reasons you will need to reach out to PayPal support over the phone, ensure you are an/the authorized person on the account.

'Reference Transactions' is a permission PayPal gives a merchant to collect recurring payment from your customers. With Chargebee(being a recurring billing application) payments that are made through Chargebee are highlighted or flagged as recurring charges, and for this, Reference Transactions plays an integral part on your PayPal account.

Without Reference Transactions, automatic recurring payment cannot be processed and hence Chargebee will not function with PayPal Express Checkout.

Alternatively, Chargebee also supports PayPal via the Braintree gateway which doesn't require Reference Transaction. Here's more.