PayPal Payment Method

Payments + Shipping & Fulfilment
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Topic summary

A user encountered an error when adding PayPal as a payment method: PayPal denied the request to accept automatic payments, preventing customers from using PayPal Express Checkout for subscriptions, deferred purchases, or post-purchase offers.

Root cause:
PayPal has not enabled Reference Transactions (also called billing agreements or automatic billing) on the account. This feature is required for recurring or deferred payments and is not activated by default on most PayPal accounts.

Recommended solution:

  • Ensure you’re using a PayPal Business account (not personal)
  • Contact PayPal Business Support via chat or phone
  • Request Reference Transactions/Automatic Billing to be enabled
  • Be prepared to explain your business model and how you’ll use recurring payments
  • Once approved, re-enable PayPal in your Shopify store

Alternative options if PayPal denies the request:

  • Continue using PayPal for one-time purchases only
  • Use Shopify Payments (Stripe), Authorize.net, or another gateway that supports recurring billing for subscriptions
  • If not selling subscriptions, disable subscription apps and test with one-time products

The discussion remains open with no confirmation of resolution from the original poster.

Summarized with AI on October 25. AI used: claude-sonnet-4-5-20250929.
1

Hello,

I need help with this message when I add PayPal Payment, it’s not working

PayPal denied our request to accept automatic payments. Customers can’t use PayPal Express Checkout to pay for subscriptions, deferred purchase options, or post-purchase offers.

How I can Fix it?

Thank you

1 Like
2

Hi @IVORYNN ,
Make sure it’s a PayPal Business Account, not personal. Only business accounts can request Reference Transactions.
Call or chat with PayPal Business Support.
Ask them to enable Reference Transactions (sometimes called billing agreements) on your account.
They usually review your business model and may ask for details about your products/services.
If PayPal won’t enable it, you can still keep PayPal for one-time orders.
For subscriptions or deferred payments, use Shopify Payments (Stripe), Authorize.net, or another supported recurring billing gateway.

Thanks
Manoj

1 Like
3

Thank you for reaching out.

The error occurs because PayPal has declined your request to enable Reference Transactions (this feature is required for subscriptions, deferred payments, and post-purchase offers). By default, most PayPal accounts don’t have this feature activated.

How to fix it:

  1. Log in to your PayPal Business account.

  2. Contact PayPal support (via chat or phone) and request Reference Transactions / Automatic Billing to be enabled.

    • You may need to explain your business model and how you’ll be using recurring or deferred payments.

  3. Once PayPal approves it, you can re-enable PayPal in your store, and customers will be able to use Express Checkout for subscriptions and similar options.

If PayPal does not approve, you can still use PayPal for one-time purchases, or alternatively connect another payment provider (like Stripe) for subscriptions.

1 Like
4

Hello @IVORYNN here’s how you can fix it step by step:

  1. Check what you’re selling – If you’re offering subscriptions, deferred payments, or post-purchase upsells, PayPal Express won’t work unless PayPal approves it.

  2. Contact PayPal support – Ask them to enable Reference Transactions on your account (this is what allows recurring/subscription payments).

  3. Test with a one-time product – If you’re not selling subscriptions, try disabling subscription apps and run a normal checkout to see if PayPal works.

  4. Use an alternative if needed – If PayPal doesn’t approve, you can use Shopify Payments or another gateway for subscriptions.

This way you’ll know whether it’s just a settings issue or if you need PayPal to enable that feature for your account

1 Like
5

To fix it, you need to contact PayPal support and request Reference Transactions to be enabled on your account, be sure to explain your business model and why you need this feature.