PayPal Classic (Legacy API)
This is the traditional PayPal payment flow, suitable if your account does not have access to the Payouts API.
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This is the traditional PayPal payment flow, suitable if your account does not have access to the Payouts API.
Before setting up PayPal Classic, make sure you have:
A PayPal Business account
Access to API credentials (Username, Password, and Signature) from your PayPal account
If the Payouts option is greyed out or unavailable, contact PayPal support and request that the Payouts API be activated for your account.
Log in to your PayPal Business account
Go to Apps & Credentials
Under the Permissions section, locate Payouts
You will see a “Contact Us” option in the Live column
Click on Contact Us and raise a request with PayPal support to enable Payouts for your live account
In your Yuko dashboard, go to Payouts → Payment Methods
Find PayPal Classic (Legacy API) and toggle it on
Log in to your PayPal account at paypal.com
Go to Account Settings → API Access
Click Continue without NVP/SOAP integration
Copy your API Username, API Password, and Signature
Go back to Yuko under Payouts → Payment Methods → PayPal Classic
Paste your API Username, API Password, and Signature
Click Save
Instant Payment Notifications (IPN) allow PayPal to notify Yuko whenever a payment is made, keeping your payout records in sync.
In Yuko, go to Payouts → Payment Methods → PayPal Classic
Copy the IPN Webhook URL shown there
Log in to PayPal and go to Account Settings → Notifications → Instant Payment Notifications
Click Choose IPN Settings
Paste the Yuko IPN URL into the Notification URL field
Select Receive IPN messages (Enabled)
Click Save
Yuko will verify the credentials and activate PayPal Classic as a payout method.
Once connected:
Affiliate payouts are processed directly through your PayPal Business account using the Classic API
Affiliates receive payments to their registered PayPal email address
Important: Affiliates must enter their PayPal email address in their Affiliate Portal → Settings before you can pay them via PayPal Classic. PayPal Classic will only appear as a payment option for affiliates who have added their PayPal email. Make sure you communicate this to your affiliates before processing payouts.
Invalid API credentials error Double-check that you copied the API Username, Password, and Signature exactly from PayPal.
IPN not receiving notifications Confirm the IPN webhook URL from Yuko is pasted correctly in PayPal and that IPN messages are set to Enabled.
Affiliate didn't receive payment Confirm the affiliate's payout email in Yuko matches their active PayPal account email.
Note: PayPal Classic is a legacy integration. If your PayPal account supports the Payouts API, we recommend using PayPal (Payout API) instead for a more reliable and automated experience.
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