Setting PayPal return URL and making it auto return?

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You have to enable auto return in your PayPal account, otherwise it will ignore the return field.

From the documentation (updated to reflect new layout Jan 2019):

Auto Return is turned off by default.
To turn on Auto Return:

  1. Log in to your PayPal account at https://www.paypal.com or https://www.sandbox.paypal.com
    The My Account Overview page appears.
  2. Click the gear icon top right.
    The Profile Summary page appears.
  3. Click the My Selling Preferences link in the left column.
  4. Under the Selling Online section, click the Update link in the row for Website Preferences.
    The Website Payment Preferences page appears
  5. Under Auto Return for Website Payments, click the On radio button to enable Auto
    Return.
  6. In the Return URL field, enter the URL to which you want your payers redirected after
    they complete their payments.
    NOTE: PayPal checks the Return URL that you enter. If the URL is not properly formatted
    or cannot be validated, PayPal will not activate Auto Return.
  7. Scroll to the bottom of the page, and click the Save button.

IPN is for instant payment notification. It will give you more reliable/useful information than what you’ll get from auto-return.

Documentation for IPN is here: https://www.x.com/sites/default/files/ipnguide.pdf

Online Documentation for IPN: https://developer.paypal.com/docs/classic/ipn/gs_IPN/

The general procedure is that you pass a notify_url parameter with the request, and set up a page which handles and validates IPN notifications, and PayPal will send requests to that page to notify you when payments/refunds/etc. go through. That IPN handler page would then be the correct place to update the database to mark orders as having been paid.

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