This PayPal integration is only compatible with PayPal Business accounts. This is a specific requirement enforced by PayPal.
Benefits
You can now offer guests one of the world's most trusted and popular payment methods seamlessly during the booking process. We've eliminated clunky redirects and extra steps, leading to a faster, smoother checkout experience that drives better conversion.
- Instant Availability: This upgraded PayPal integration is available by default on all properties using Booking Engine V3.
- Simple Upgrade: Properties migrating from Booking Engine (V2) to Booking Engine Plus (V3) will automatically benefit from this enhanced payment flow.
- Real-Time Data Integrity: All PayPal transactions result in real-time confirmations and automatic updates to the reservation and folio within your system.
- Boost Conversions: Offering a familiar, secure, and single-click checkout option like PayPal significantly improves the guest experience, helping you capture more bookings.
Currency Requirements
Before connecting PayPal, it's crucial to ensure your Main Currency set in Cloudbeds is supported by PayPal. Using an unsupported currency can lead to booking errors. You can find the list of supported currencies here.
If your Cloudbeds currency is not supported by PayPal, your Booking Engine will likely show an error when a guest attempts to book using PayPal. This is a limitation on PayPal's side, and unfortunately, Cloudbeds cannot directly resolve it.
Here are a couple of suggestions if you encounter this currency limitation:
- Contact PayPal Support: We recommend reaching out to PayPal support directly to request their support for your specific currency. The more users who request it, the higher the chance they may consider adding it in the future.
- Consider Changing Cloudbeds Currency (❗with caution❗): If you are open to it, changing your entire Main Currency in Cloudbeds to one of the options supported by PayPal would resolve this issue. However, please be aware that this will impact all aspects of your Cloudbeds setup, including your displayed rates and prices. This option may not be suitable for all properties.
PayPal Business account requirements
To use the current PayPal connection (required for Booking Engine Plus (V3)), PayPal mandates a Business account. Below is a summary of key requirements:
- A valid email address to register.
- Business owner’s full legal name, date of birth, and contact information (including phone number).
- Business name (or your legal name if you are a sole proprietor), business address, and business type/structure (sole proprietorship, partnership, corporation, etc.).
- Tax ID: If your business is incorporated or has an Employer Identification Number (EIN), you must provide it. Sole proprietors in some regions may provide their Social Security Number (or local equivalent).
- A linked bank account (business or personal, depending on region) for deposits: bank name, account number, and routing number (or equivalent).
- Verification of your identity and bank account — PayPal may request documentation (e.g., government ID, bank statement).
- Your business must comply with PayPal’s Acceptable Use Policy (some business types may be restricted).
- (Optional but recommended) Enable two-factor authentication (2FA) and ensure your business details are up to date for security and smooth operations.
Before Upgrading PayPal: Migrate to Booking Engine Plus
If you upgrade your PayPal account to a Business account while your property is still using Booking Engine V2, you will continue seeing the old PayPal connection, and you will not be able to enter your new PayPal Business API credentials until you migrate to Booking Engine Plus.
To avoid confusion or payment errors, customers who upgrade their PayPal account early should go to the Booking Engine Settings → Summary and click Upgrade Now to self-migrate. After upgrading, the new PayPal tab will appear, and they can enter their Business details.
This is a temporary requirement during the migration period and will no longer be needed once all properties have moved to the new version. For context on why this upgrade is required, see iFrame Deprecation: What’s Changing and Why to Upgrade to Cloudbeds Booking Engine Plus.
Connection Steps
Step 1: Make a PayPal Business Account
Make sure that you have an active PayPal business account. You can create a new PayPal account in minutes if you don't.
Provide business details, including your legal business name and taxpayer identification number (if applicable), and connect your business bank account to receive payments.
Step 2: Log into the PayPal Developer Dashboard
Once your PayPal business account is set up, you can access the PayPal Developer Dashboard. It's best to use a desktop or laptop for this process. Log in using your existing PayPal Business account credentials.
On the developer homepage, locate the toggle in the top right corner and ensure it is set to "Live".
This step is crucial to start receiving real payments. Make sure you don't miss it and set the toggle to Live❗ If you attempt to use Sandbox (test) credentials from PayPal, your Booking Engine may display an error message to the guest during the booking process. These errors indicate that you need to go back to your PayPal account and ensure that you are generating and using Live API credentials as outlined in Step 2 and Step 4. Sandbox credentials cannot be used for processing real payments on your live Booking Engine.
Step 3: Create a New App
In the top menu bar of the developer dashboard, click on "Apps & Credentials" (or "My Apps & Credentials" on mobile). You might see a "Default Application" under "REST API apps" – you can ignore this.
Click the blue "Create App" button. A short form will appear.
- Assign a PayPal App Name: We recommend using a name that helps you identify this connection easily in the future, such as "Cloudbeds Booking Engine" or your property name followed by "Cloudbeds."
- Select Merchant: Indicate that you will be processing payments as a merchant. Choose "Merchant" and then click "Create App".
Step 4: Copy the Client ID and Secret Key
Congratulations! You've now generated your PayPal API credentials.
Under the "API Credentials" section, find the field labeled "Client ID". This is a long string of numbers and letters – copy this entire string.
Directly below the "Client ID" field, another field labeled "Secret." To view your Secret Key, click the "Show" button. You should also copy this key.
Steps to perform in Cloudbeds PMS
-
Account
-
Settings
-
Finance
- Payment Options
- PayPal
- Activate
- Enter your account information
Comments
What are the PayPal transaction fees and how long does it take for the payments to reach our account?
Hello, James Ricardo,
Our Support Team will review your question to offer dedicated assistance as soon as possible.
Thank you!
I have the same question about transaction fees and how they compare to credit card transaction fees. Linda
Franconia Inn
Hello, Linda Ricciardelli,
Thank you for adding your question to this thread. We have already created a ticket for our Support Team. They will review your request and will contact you directly as soon as possible with more information.
Additionally, we have noted these comments to apply the necessary updates to this article.
We appreciate your feedback.
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