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Strangely the documentation on the Paypal site does not cover this very well.
We have a payment button that redirects to Paypal to process a payment.
We also have an IPN server running that catches paypal payments once they're made.
However, where can we place the "user id" of our system user in the paypal button, so that it will be forwarded to the IPN request in order to match the user up on our system that they have paid. Paypal seems to want people to do this manually, which is a real mission.
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Click the settings icon at the top of your PayPal account page and then click Account Settings. On the Notifications page, click the Update link for the Instant payment notifications item. Click Choose IPN Settings to specify your listener's URL and activate the listener.
Smart Payment Buttons by PayPal are designed to improve the checkout experience and improve checkout conversions. With this integration, you can give customers the option to pay with PayPal, Venmo, and major credit cards and debit cards - on almost any device - when they checkout with PayPal.
I'm currently doing some PayPal integration and I concur their documentation is a mess!
I finally found a guide somewhere that details which variables of a PayPal button form are forwarded to the IPN callback. You can use the variable item_name to forward a user id:
<input type="hidden" name="item_name" value="{user id}">
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