PayPal Express Checkout gateway integration supports the following Gateway Reconciliation event types:

• Settlement

• Rejection

• Chargeback

Note that Zuora only creates an external refund for a transaction if the transaction status is Reversed , which maps into the Chargeback event type.

The PayPal Express Checkout gateway handles various transactions, for example, payments, refunds, and eCheck. Zuora, however, only reconciles payments through PayPal Express Checkout.

Zuora reconciles payment transactions two times. For payment transactions that take place on day N:

• They will be reconciled on day N+7 for the first time. All supported event types are processed.

• The second reconciliation is performed on day N+16, whereas only the following event types are processed:

  • Settlement

  • Rejection

If a transaction is in an intermediate status instead of final status on day N+16, it cannot be reconciled. At a later time, you can manually create a refund, or use the Payment Gateway Reconciliation API operations to reconcile the payment.

Zuora uses PayPal's TransactionSearch API Operation (NVP) API on a daily basis to search for the transactions for reconciliation. The following table describes how different transaction status is mapped to the corresponding gateway reconciliation event type: