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We are in the process of implementing Paypal at our market place where users can book events that cost about 25-80$. During the checkout, we get the error You are not signed up to accept payment for digitally delivered goods which obviously indicates that we have to be activated for digital goods.

My question is, since the process of being activated seems rather complicated (we have to fill out several pages of a form): What are the implications of using ITEMCATEGORY= Physical instead of Digital? Of course, users shouldn't need to provide a shipping address, and we don't need micro transactions smaller than 5$. Apart from these, is there anything that might stop us from just using the physical category?

lacco
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Simple answer is no. It doesn't sound to me like you need digital goods enabled at all.

In fact, I'd just leave that parameter out altogether and let it use the default (which would be physical anyway.) You can still send NOSHIPPING=true so they don't have to mess with any of that, but again, doesn't sound like you need to hassle with itemcategory at all.

Drew Angell
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    Exactly. Don't mis-state that you are selling physical goods, just don't specify and set noshipping to avoid dealing with mailing addresses. PayPal has specialized products that offer extra functionality for digital goods sellers (micropayments support, "remember me" accelerated checkout) but it doesn't sound like you are trying to use those digital-goods-specific features. Note that not having shipping addresses will prevent you from being eligible for some forms of seller protection; if this matters to you, contact PayPal and see if they would offer seller protection in your use case. – geewiz Aug 01 '14 at 03:05