Add a PayPal account in Xero and set up an automatic bank feed

If you have a Premier or Business PayPal account, you can set up an automatic bank feed in Xero. New transactions are imported every 12 hours. Add a separate bank account in Xero for each currency you import from PayPal.

Your user role determines if you can add PayPal bank accounts.

About PayPal feeds

  • You'll need a Premier or Business PayPal account. You can upgrade to Premier for free if you have a personal PayPal account. There may be other charges from PayPal depending on the number and type of accounts you have with them.
  • PayPal imports the last 30 days of your transactions from when the feed connects. For older transactions, you'll need to manually import them.
  • Each PayPal account you set up in Xero can only have one currency. Add separate PayPal accounts in Xero for each currency you import from PayPal.
  • Upgrade your Xero pricing plan to one with multi-currency if you want to import more than one currency from PayPal into Xero, or if the currencies of your Xero organisation and PayPal account are different.

Transactions included in the PayPal feed

The PayPal feed only includes transactions:

  • with a status of Completed, Cleared or Reversed
  • in the same currency of the PayPal account you set up in Xero
  • that do not have a value of 0.00.

If your PayPal account is being used as a payment gateway

If you make payments from a bank account or credit card that pass through PayPal (and are not PayPal funds), these payments won't import into your PayPal account in Xero. Go to your credit card account to reconcile these transactions.

Add a bank account and set up a PayPal feed

If you signed up for a new PayPal account from an approved invoice, Xero automatically created a PayPal bank account for you. To set up your feed, you'll need to edit your bank account.

In Xero

  1. Go to Accounts, then click Bank Accounts.
  2. Click Add Bank Account.
  3. Start typing PayPal in the Find your bank search box, then select PayPal from the drop-down list.
  4. Enter your account name, choose your currency (if you've got multi-currency) and select the checkbox to import your transactions automatically. You can't change your currency once you have chosen it.
  5. Enter your PayPal email and choose your import start date. You can't edit the start date for the automatic feed once the feed has started.
  6. Click Continue. A confirmation email from Xero will be sent to your PayPal email address.

Verify your email address

Go to the email from Xero and click the email verification link.

Image showing email from Xero

In Paypal

Update your PayPal settings to turn on automatic feeds to Xero.

The following instructions apply to Business and Premier PayPal accounts. The steps may change, please contact PayPal if you require further help.

  1. Log in to PayPal
  2. Locate the My Selling Tools link. The location changes depending on the type of PayPal account you have:
    • If you have a Business account: click Profile on the PayPal homepage, then click My Selling Tools. Some account holders will need to click Profile and settings from a dropdown menu before clicking on My Selling Tools.
    • If you have a Premier account: under Selling Tools at the bottom left of the PayPal homepage, click Seller preferences.
  3. Next to API access click Update.
  4. In the Option 1 box select Grant API permission or Add or edit API permissions (if you already have an API added).
  5. In the Third Party Permission Username field, type: paypal_api1.xero.com
  6. Click Lookup.
  7. Check the boxes Obtain information about a single transaction and Search your transactions for items that match specific criteria and display the results.
  8. PayPal boxes to check for API

  9. Click Add.
After setting up your feed, it may take 24 hours for your first statement to be imported into Xero.