SOLUTION INCL'D: 10501 error - invalid merchant configuration

BACKGROUND/GETTING TO THE ERROR:

• I helped a client get registered w/ paypal for wpp (website payment pro).
• Installed and set up zen cart.
• Turned on paypal pro and express checkout in the payment modules and set them to sandbox.
• I signed up for paypal's sandbox (https://developer.paypal.com).
• I created the test accounts automatically - but they generate ugly email addresses, so rather than create a test email address on that server, I also manually created a sandbox personal account and use a test gmail.com account of mine. In this account (on the sandbox) I added a credit card [MAKE SURE YOU COPY THE CREDIT CARD WHEN YOU SEE IT. ALSO, add the credit card from the main menu of the sand box after you create the test accont - this will automatically populate it with a test cc number. If you try to add one AS you create the test account it will give you a blank credit card number and no matter what you put it there it won't be correct - remember - this is the sandbox. Of course, now that I think about it, I could sign up with ANY email addr in zencart when doing this testing - so do what you want.]
• I followed paypal's directions and got the api credentials by just clicking the API credentials button.
  api username,
  api password and
  api signature
• Then i tested doing a cc purchase (not using paypal funds and not the express checkout) with my manually created test account and kept getting the 10501 error - invalid merchant configuration error.
  SOLUTION: It took me awhile to realize that this was paypal's error being returned and not zencart's. Here's what I did to fix this - found it on paypal's sandbox community forum:

If you're working in the Sandbox, log into Developer Central, click the Test Accounts link, select the seller's account, and click the orange button. A new browser window will open. Log into the Sandbox test account and you should see that the next step is to accept the billing agreement. Just follow the step.

If you're working in the Live environment, you need to sign up for Website Payments Pro. Once PayPal approves you, log into your account and accept the billing agreement on the Overview page.

So - the whole d!^%mn problem was that the BILLING AGREEMENT wasn't signed - EVEN in the sandbox. Paypal should do either: a) automatically agree for you in the sandbox when it gives you the api codes, b) warn you to agree to the billing agreement b4 using the api, c) give you a logical error message telling you billing agreement not signed.

Hope this save YOU some time!

Glad you found your solution.

That's one reason why I always recommend testing "live" transactions instead of going through all the steps to set up a sandbox account and test accounts and test profiles and test scenarios and trying to be a developer when all the development work has already been done.

"Live" tests need to be done anyway, and can always be refunded/voided to avoid being "out" any money.
"Sandbox" stuff is for programmers writing new code ... which 99% of merchants are not.

If you're a one-person shop and you want to just do the live paypal version and reverse it all, I think Dr.Byte is right. But don't forget to reverse it! And I hope you use your own accounts!

Good reasons (in my mind) to take the time to set up the paypal sandbox are:

• the credit card fees
• the time it takes to reverse transactions and
• the cost if one forgets or does not get around to doing it because a test script dies or something.

All together, including the time it took to track down the problem above it took me about 3 hours to sign-up, learn about, configure, trouble-shoot and then successfully run my first test using the paypal sandbox. Tracking and resolving the problem took about 2 hours -- 45 minutes of which was spent writing the above post so others wouldn't have to spend that time.

But if you're a store for a large business with multiple developers and testers that needs to test lots of multi-thousand dollar transactions, the credit card transaction fees are quite hefty if one forgets or does not get around to canceling the transactions in a live environment. The first test I did, using the paypal sandbox, of course, cost $29.90 in credit card fees. That's using paypal's best rate (2.2% on a $1,018.00 purchase. We need to test our store against $700 to $8000 purchases. I want the peace of mind knowing that I don't have to stay on top of making sure that anyone who does a test also reverses the charges. Even for my own one person store, it's great to not have to think about it.

Cheers!

The previous solution didn't work for me because I am doing a live testing.

When checking out I receive the following error:
10501 Invalid Configuration - This transaction cannot be processed due to an invalid merchant configuration.

In response to another thread, I:

• Signed up for the Website Payments Pro service at PayPal
• I filled out an application form.
• I was accepted.
• They gave me confirmation the service was added to my account.
• I been informed of the new monthly fee and agreed to pay it.

My configuration settings are:

• PayPal Website Payments Pro | PayPal Mode | Live
• PayPal Express Checkout | PayPal Mode | Live

I could not find any help with the other threads. Any new suggestions?

Maybe I got it wrong. When I called PayPal, the representative told me that the application approval status Not approved had to do with Virtual Terminal, not checking out with a cart. I emailed PayPal and am waiting for a response for clarification. Still, if anyone has any comment to add, I'm interested to know.

The message means exactly what it says. You are trying to use the account for services to which you are not authorized.
You will need to be approved to checkout with a cart if you want to checkout with a cart.
Your PayPal representative will have to help you with that.