Is there a way that my PHP code can generate an encrypted BuyNow button that also includes custom fields and also implements an IPN URL and redirect page?
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You don’t have to encrypt. Simply take the ‘custom’ variable, and, among other things you might need to put in there, add a hash of the price and product number, like so:
Then, when the IPN is processed, ensure that this hash was not disturbed with what is received back. If it was, then block the transaction.