The PayPal Payments plugin for WooCommerce supports two primary methods for handling subscriptions: PayPal Subscriptions and PayPal Vaulting with Reference Transactions. Both methods allow merchants to offer recurring billing for subscription-based products and services, with varying levels of flexibility and complexity.
How PayPal Vaulting Works
When the Save PayPal and Venmo option is checked, PayPal Vaulting is enabled, securely storing customer PayPal accounts for future use. This enables seamless, recurring transactions and subscriptions.
- Checked: PayPal Vaulting is active; future payments are processed automatically using stored PayPal accounts. The Pay Later option is disabled.
- Unchecked: The PayPal Subscriptions API is used instead, and recurring payments are processed without storing the customer’s payment method.
This setting allows you to choose between a flexible, secure vaulting solution and a basic recurring payment structure.
Requirements for Subscriptions
- The Woo Subscriptions extension is required.
- PayPal Subscriptions: Automatic renewals with fixed schedules and amounts.
- PayPal Vaulting: Requires approval for Reference Transactions and stores payment methods for flexible renewals.
Supported Subscription Features
| Basic Features | PayPal Subscriptions | PayPal Vaulting |
|---|---|---|
| PayPal seller account type | Business accounts only | Business accounts only |
| PayPal permission level | Available by default | Requires Vault approval (Reference Transactions) |
| Subscription suspension | ✔ | ✔ |
| Subscription cancellation | ✔ | ✔ |
| Subscription reactivation | ✔ | ✔ |
| Advanced Features | ||
| Multiple Subscriptions | ❌ | ✔ |
| Recurring total changes | ✔ | ✔ |
| Payment date changes | ❌ | ✔ |
| Subscription Switching | ❌ | ✔ |
| Customer payment method changes | ❌ | ✔ (requires saved payment method) |
| Store manager payment method changes | ❌ | ✔ (requires saved payment method) |
| Free trial subscriptions | ✔ | ✔ |
| Synchronized or prorated payments | ❌ | ✔ |
| Flexible payment amounts (varying shipping, coupons, etc.) | ❌ | ✔ |
Subscription Flow
Following PayPal Payments version 2.3.0, subscription payments use the configured Intent setting. Products with free trials or zero-sum charges have a unique checkout flow where the payment method is saved without an actual payment.
How to Set Up PayPal Subscriptions
- Activate PayPal Subscriptions in the plugin settings.
- Navigate to Products > All Products in WooCommerce.
- Create or edit a product and select Simple Subscription or Variable Subscription.
- Configure a price and billing cycle (cannot be changed once linked to PayPal).
- Ensure the Connect to PayPal checkbox is selected and specify a Plan Name.
- Publish or update the product to create the PayPal Subscription.
Viewing Subscriptions
Customers can view their subscription details in the My Account section and are provided a link to the PayPal dashboard.
Limitations with PayPal Subscriptions
- Mixed carts: Cannot include other products with subscription items.
- Price adjustments: No coupon or shipping discounts apply to subscription prices.
- Synchronized payments: Not supported.
- Subscription switching: Not supported.
- Fixed billing cycle: The cycle cannot be changed once the product is linked to PayPal.
PayPal Vaulting
Vaulting stores payment methods securely for flexible renewal amounts and scheduling. This method allows for automatic or manual subscription renewals without requiring the customer to be present.
Existing subscriptions can use saved payment methods, and multiple subscriptions can be handled with the same saved payment method.
Reference Transactions are required for PayPal Vaulting and need merchant approval.