I've been working a lot with Paypal recently. I have been using it to book days in my friends Holiday home in Bergen, Norway.
There are a lot of help documents for Paypal but it is all very vague and it is very hard to be pointed in the the right direction.
If you are going to do any development with Paypal, you should set up a developer account. This allows you to create a SandBox Account. A sandbox account is a fully functioning Paypal account where the emails are not send and the Financial instructions are not carried out. So you can test all their functionality without having to use your own credit card, and have to deal with messy refunds.
Once you have logged in to your developer account you create a Sandbox account, this account can have real details if you like because no emails are sent and credit cards are not charged.
With this Sandbox account you can create buttons, set up IPN URLs and you can test them out before going live.
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