How I set up Paypal Adaptive Payment for Railsview.com

Before you start, you need to create a developer account on X.commerce an Ebay Company that own Paypal and have set up a test user in your paypal sandbox account. One for the merchant, and one for the seller. These account will be use to test this payment here. here railsview_paypal_account@gmail.com will be the sample email I will use to represent the merchant and author_paypal_account@gmail.com is the sample email I will use to represent the seller. This payment model is a chained payment which mean that there will be more than one recipient for the amount of the sale.

	class OrdersController < ApplicationController
	  include OrderHelper
	  include ActiveMerchant::Billing::Integrations   
	
	  before_filter :get_buyer_info, :get_theme, :initializer
	  skip_before_filter  :verify_authenticity_token, :only => :notify_action
	
	  def initializer
	      app_paypal_email("APP_PAYPAL_EMAIL_HERE") # example_biz_api1.gmail.com"
	      setup_seller_profit(75)
	      setup_receivers("PRIMARY_RECEIVER_HERE", "SECONDARY_RECEIVER_HERE")
	      get_buyer_info
	      get_theme
	      assigns_gateway
	  end
	
	  def checkout
	    initializer
	  
	    recipients = [{:email => @seller,
	                   # # Active this if its a split payement and both primary are false
	                   # :amount => @author_profit,
	                   :amount => @theme.price,
	                   :primary => true},
	                  {:email => @railsview,
	                   :amount => @railsview_profit,
	                   :primary => false}
	                   ]
	    response = @gateway.setup_purchase(
	                :return_url => "http://localhost:3000",
	                :cancel_url => "http://localhost:3000",
	                :ipn_notification_url => orders_notify_action_url(
	                  :theme => @theme, 
	                  :current_user => @current_user
	                  ),
	                :receiver_list => recipients
	                )
	  
	    setup_billing_information
	
	    redirect_to (@gateway.redirect_url_for(response["payKey"]))
	  end
	
	  def notify_action
	    notify = ActiveMerchant::Billing::Integrations::PaypalAdaptivePayment::Notification.new(		request.raw_post)
	    p "Notification object is #{notify}"
	    if notify.acknowledge
	      get_notification
	    end
	
	    def get_notification
	      p "Transaction ID is #{notify.transaction_id}"
	      p "Notification object is #{notify}"
	      p "Notification item_id is #{notify.item_id}"
	      p "Notification amount is #{notify.amount}"
	      p "Notification status is #{notify.status}"
	      p "Notification invoice is #{notify.invoice}"
	
	      @notification = OrderNotification.create(
	      :status => notify.status,
	      :txn_id => notify.transaction_id,
	      :amount => notify.amount,
	      :item_id => "@theme.user.name/Theme_#{@theme.id}",
	      :invoice => notify.invoice
	      )
	
	      p "**NOTICE: Istant Payment Notifications details were succesfuly added to @notifiation"
	
	      if @notification.status == "COMPLETED"
	        is_completed
	      else
	        puts "The transaction wasn't completed"
	      end
	    end
	
	    def is_completed
	
	        # Add details to the purchase table
	          @current_user = User.find(params[:current_user])
	          @purchased = Purchase.create!(
	          :author => @theme.user.name,
	          :buyer => @current_user.name,
	          :theme => "#{@theme.title}# id:#{@theme.id}",
	          :price => @theme.price,
	          :author_profit => @author_profit,
	          :railsview_profit => @railsview_profit
	        )
	
	        print_purchase_details(@author_profit)
	        increment_theme_purchase(@theme.id)
	    end
	
	    render :nothing => true
	  end
	
	  def print_purchase_details(author_profit)
	    puts "AUTHOR PROFIT: #{author_profit}"
	    puts "The details were added to the Purchase table:"
	    puts @purchased.to_yaml
	  end
	
	  def setup_billing_information
	    @gateway.set_payment_options(
	      :display_options => {
	        :business_name    => "Railsview.com || #{@theme.title}",
	        :header_image_url => "http://cdn.yourbusiness.com/logo-for-paypal.png"
	      },
	    :pay_key => response["payKey"],
	    :receiver_options => [
	      {
	        :description => "Your purchase of #{@theme.title} made by #{@theme.user.name}",
	        :invoice_data => {
	          :item => [
	            { :name => "#{@theme.title} - #{@theme.id}", :item_count => 1, :item_price => @theme	.	price, :price => @theme.price},
	          ],
	          :total_shipping => 0,
	          :total_tax => 10
	        },
	        :receiver => { :email => @seller }
	      },
	      {
	        :description => "XYZ Processing fee",
	        :invoice_data => {
	          :item => [{ :name => "Fee", :item_count => 1, :item_price => 10, :price => 10 }]
	        },
	        :receiver => { :email => @railsview }
	      }
	    ]
	    )
	  end
	
	  private
	
	    def assigns_gateway
	      @gateway = ActiveMerchant::Billing::PaypalAdaptivePayment.new(
	        :login => @app_paypal,
	        :password => "=PASSWORD",
	        :signature => "APPLICATION_SIGNATURE",
	        :appid => "APPLICATION_ID",
	        # :email => "#{current_user.paypal}"
	        :email => @seller
	      )
	    end
	
	    def get_buyer_info
	      @current_user = User.find(params[:current_user])  
	    end
	
	    def get_theme
	      @theme = Theme.find(params[:theme])
	    end
	
	    def setup_seller_profit(profit_in_percentage)
	      seller_profit = profit_in_percentage/100
	      comission = 1 - seller_profit
	      @railsview_profit =  @theme.price * comission
	      @author_profit = @theme.price * seller_profit
	    end
	  
	    def print_profit_rate
	      puts "COMISSION: #{comission}"
	      puts "authorProfitPercentage #{seller_profit}"
	      puts "AuthorProfit: #{@author_profit.to_f}"
	      puts "railsviewProfit: #{@railsview_profit}"
	    end
	
	    def setup_receivers(primary_receiver, secondary_receiver)
	      @seller = primary_receiver
	      @railsview = secondary_receiver
	    end
	
	    def app_paypal_email(email)
	      @app_paypal = email
	    end
	
	    def increment_theme_purchase(theme_id)
	      Theme.increment_counter(:purchased, theme_id)
	    end
	
	end

Ideally I would recommend to put all the sensitive information in a .yml file and add it to your .gitignore file this way when you push your project to github all the logins information remains private.