<?php
// read the post from PayPal system and add 'cmd'
$req = 'cmd=' . urlencode('_notify-validate');

foreach ($_POST as $key => $value) {
    $value = urlencode(stripslashes($value));
    $req .= "&$key=$value";
}

$ch = curl_init();
curl_setopt($ch, CURLOPT_URL, 'https://www.paypal.com/cgi-bin/webscr');
curl_setopt($ch, CURLOPT_HEADER, 0);
curl_setopt($ch, CURLOPT_POST, 1);
curl_setopt($ch, CURLOPT_RETURNTRANSFER,1);
curl_setopt($ch, CURLOPT_POSTFIELDS, $req);
curl_setopt($ch, CURLOPT_SSL_VERIFYPEER, 1);
curl_setopt($ch, CURLOPT_SSL_VERIFYHOST, 2);
curl_setopt($ch, CURLOPT_HTTPHEADER, array('Host: www.paypal.com'));
$res = curl_exec($ch);
curl_close($ch);

// assign posted variables to local variables
$item_name = $_POST['item_name'];
$item_number = $_POST['item_number'];
$payment_status = $_POST['payment_status'];
$payment_amount = $_POST['mc_gross'];
$payment_currency = $_POST['mc_currency'];
$txn_id = $_POST['txn_id'];
$receiver_email = $_POST['receiver_email'];
$payer_email = $_POST['payer_email'];

if (strcmp ($res, "VERIFIED") == 0) {
    // check the payment_status is Completed
    // check that txn_id has not been previously processed
    // check that receiver_email is your Primary PayPal email
    // check that payment_amount/payment_currency are correct
    // process payment
}
else if (strcmp ($res, "INVALID") == 0) {
    // log for manual investigation
}
?>

if (strcmp ($res, "VERIFIED") == 0) {
    // check the payment_status is Completed
    // check that txn_id has not been previously processed
    // check that receiver_email is your Primary PayPal email
    // check that payment_amount/payment_currency are correct
    // process payment
}