> For the complete documentation index, see [llms.txt](https://docs.afflr.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.afflr.io/payouts/payment-methods-in-yuko/paypal-classic-legacy-api.md).

# PayPal Classic (Legacy API)

### Prerequisites

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

{% hint style="warning" %}
If the Payouts option is greyed out or unavailable, contact **PayPal support** and request that the Payouts API be activated for your account.

1. Log in to your PayPal Business account
2. Go to **Apps & Credentials**
3. Under the Permissions section, locate **Payouts**
4. You will see a “**Contact Us**” option in the Live column
5. Click on Contact Us and raise a request with PayPal support to enable Payouts for your live account
   {% endhint %}

### Step 1 — Enable PayPal Classic in Yuko

1. In your Yuko dashboard, go to **Payouts → Payment Methods**
2. Find **PayPal Classic (Legacy API)** and toggle it on

***

### Step 2 — Retrieve Your PayPal API Credentials

1. Log in to your PayPal account at [paypal.com](https://www.paypal.com)
2. Go to **Account Settings → API Access**
3. Click **Continue without NVP/SOAP integration**
4. Copy your **API Username**, **API Password**, and **Signature**

***

### Step 3 — Add API Credentials in Yuko

1. Go back to Yuko under **Payouts → Payment Methods → PayPal Classic**
2. Paste your **API Username**, **API Password**, and **Signature**
3. Click **Save**

***

### Step 4 — Configure IPN Webhook

Instant Payment Notifications (IPN) allow PayPal to notify Yuko whenever a payment is made, keeping your payout records in sync.

1. In Yuko, go to **Payouts → Payment Methods → PayPal Classic**
2. Copy the **IPN Webhook URL** shown there
3. Log in to PayPal and go to **Account Settings → Notifications → Instant Payment Notifications**
4. Click **Choose IPN Settings**
5. Paste the Yuko IPN URL into the **Notification URL** field
6. Select **Receive IPN messages (Enabled)**
7. Click **Save**

Yuko will verify the credentials and activate PayPal Classic as a payout method.

***

### How It Works After Setup

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

{% hint style="warning" %}
**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.
{% endhint %}

***

### Troubleshooting

**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.

{% hint style="success" icon="circle-question" %}

#### Need help?

Contact support                                      - [CONTACT](mailto:contact@afflr.on.crisp.email)

Schedule a free onboarding call            - [BOOK A CALL](https://cal.com/yukoteam/yuko)

Join the Yuko community                       - [VISIT](https://yuko.so/partners/agency/)      
{% endhint %}