Unfortunately it seems PayPal has broke IPN processing for PHP users recently. This is important news because a good majority of the people using IPN with a PHP script are no longer able to automatically process payments, and PayPal offers nothing to help PHP users who are having trouble. In fact they claim that they changed nothing and that it is the user's fault that it suddenly stopped working one day. The problem actually is that PayPal now seems to require your IPN script to follow a http redirection. After trying almost everything, within reason, to avoid this redirection, it seems no matter whether you use GET or POST and HTTP or HTTPS they force you to follow the redirect. The solution to this problem is to use cURL so PHP can follow the redirection and thus get the VERIFIED or INVALID response from PayPal. A new PHP class which works perfectly with the current PayPal IPN (and should always work even if they fix the bug) is available at http://www.scriptdevelopers.net. It is a modified version of the class by Pineapple Technologies which is commonly used all over the Internet and is a drop in replacement for their paypal_ipn.php class. If you use a class named paypal_ipn.php, then most likely you will need to get this updated version. The script is licensed under the GPL.
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