There is a lot of confusion over the myriad of services that PayPal offers for accepting PayPal payments. In reality there are two ways of accepting PayPal payments.
PayPal Website Payments Standard
Website Payments Standard is the basic service PayPal offers for accepting PayPal payments. Website Payments Standard requires the creation of an HTML form that is posted to PayPal. The user is redirected to the PayPal website where they complete their payment. They are then redirected back to the seller's website at the end of the process where it is possible to display an order confirmation, or other information. Very basic, easy to setup, but also quite limited.
PayPal Express
PayPal Express is a much more powerful alternative to PayPal Website Payments Standard. The downside is that it is slightly more complicated. However, I am going to show how easy it is to get PayPal Express working with ActiveMerchant. PayPal Express has several benefits including support for Authorization and Capture. Website Payments Standard also has support for Authorization and Capture, but the seller has to actually login to their PayPal account to capture the funds. PayPal Express also keeps control of the payment flow on your page, instead of PayPal's. The user is only redirected to PayPal briefly to confirm payment, and then they are sent back to the seller's page to complete the payment. There are several advantages to this, but I think the biggest is that you can rely on PayPal to provide address information for the buyer and then determine additional shipping or other charges to add to the total of the order. Read on...

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