PayPal’s Instant Payment Notification (IPN) service automatically notifies merchants of events related to PayPal transactions. Chargebee creates a notification URL which can be configured in PayPal to track PayPal’s transaction-related information.
Chargebee uses the IPN notifications to track BAID cancellations from customers. Chargebee listens only to the “Billing Agreement canceled” event and marks the PayPal Payment method associated with the customer as INVALID in Chargebee. This event will be notified to you via an email so that you can reach out to the customer. If the payment details are not updated, the subscription would automatically cancel upon cancellation.
Note: Other operations performed directly in your PayPal account such as refunds, will not be reflected in Chargebee.
To configure IPN in your Chargebee dashboard, go to Settings > Configure Chargebee > Payment Gateways > PayPal Express Checkout and copy the Notification URL.
Now in your PayPal Business account, go to My Account > Profile > My Setting Tools > Instant payment notifications > Update > Choose IPN Settings, paste the copied notification URL and also enable the option Receive IPN messages.
Related articles and documentation:
I received a ‘PayPal Instant Notification Warning’ email from PayPal. What should I do now?