1) In your account settings on www.paypal.com:
- Go to Profile & settings → My selling tools.
- Click the Update link near the Website preferences option.
- Set the Auto Return option as Yes. When specifying Return URL, enter a value like http://yourdomain.com/index.php?dispatch=payment_notification.return&payment=paypal
- Do not change any other settings on that page.
If you have the secure connection enabled at checkout, use a https link like https://yourdomain.com/index.php?dispatch=payment_notification.return&payment=paypal
2) If orders are still posting back as OPEN, try the following
1. Login to PayPal.com
2. Open the Profile > My Selling Preferences section.
3. Find the Instant payment notifications option. Specify the following return URL:
http://yourdomain.com/index.php?dispatch=payment_notification.notify&payment=paypal