What is the billing agreement for PayPal Express Checkout?

Modified on: Thu, 27 Dec, 2018 at 5:18 PM

This article covers:

Billing Agreement ID

Reference Transactions

When a customer is making a purchase on Chargebee's checkout pages they can choose PayPal (Express Checkout) to pay from their own PayPal accounts.

This will create a Billing Agreement ID (BAID).

Chargebee uses BAID as a payment token to process recurring payment from the customer’s PayPal account automatically without them having to perform any action (such as logging into PayPal and approving the transaction) during each renewal. It can also be used to pay one-time charges in Chargebee.

For the creation of BAID, and to allow processing recurring transaction, it is mandatory that your PayPal business merchant account has Reference Transactions enabled.

The customer can cancel their BAID from their PayPal account and the merchant will receive a notification. They can take action on the subscription manually or the dunning will kick-in


  1. To enable Reference Transactions in your Live or Sandbox account, you can contact PayPal's Merchant Technical Support  and specify the business account in which you would want this feature to be enabled.

  2. Alternatively, you could also connect PayPal via your Braintree gateway account.

Related articles & documentation:

PayPal Express Checkout

PayPal via Braintree


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