Note: Red Rook does NOT support or assist with Paypal setup or troubleshooting. The following information is provided as a courtesy based on our experience. We recommend working with a certified Magento developer if you have any trouble with getting Paypal to function properly with your Magento website.
Note: If you are planning on using Paypal on your Magento website we highly recommend that you are running Magento Community 1.8.1 or Magento Enterprise 1.13 or higher. There have been a lot of bug fixes and enhancements to Paypal processing.
Paypal Credit Card Tokenization
By default Magento lacks the capability of allowing a customer to store a credit card on file when using Paypal. The following free extension adds Paypal tokenization which allows you to reused a customer's paypal payment information in the Magento Admin as well as in the front end checkout process
Paypal Pro - Recommended version of Paypal
Note: Based on your Paypal volume you may be able to talk with your Paypal representative about waiving the $30/month fee
To get the full functionality of having Paypal seamlessly integrated into Magento's shopping cart and backend admin order creation we recommend that you use Paypal Pro.
Magento Admin: System/Configuration
This adds another payment method in the Magento Admin when placing a Reorder
When an order has been placed with Paypal you will see payment details like the following in the Magento Admin with the order
Paypal Settlement Reports in Magento
A PayPal settlement report lists transactions that affect settlement of funds as well as a summary of each currency held by the account, total debits and credits, and beginning and ending balances. You use it to reconcile your transactions in your merchant bank account.