diff --git a/src/Billing/Controllers/PaypalController.cs b/src/Billing/Controllers/PaypalController.cs
index 458ba9fa86..73f04b4e33 100644
--- a/src/Billing/Controllers/PaypalController.cs
+++ b/src/Billing/Controllers/PaypalController.cs
@@ -1,4 +1,6 @@
 using Bit.Billing.Utilities;
+using Bit.Core.Enums;
+using Bit.Core.Repositories;
 using Microsoft.AspNetCore.Mvc;
 using Microsoft.Extensions.Options;
 using Newtonsoft.Json;
@@ -13,13 +15,16 @@ namespace Bit.Billing.Controllers
     {
         private readonly BillingSettings _billingSettings;
         private readonly PaypalClient _paypalClient;
+        private readonly ITransactionRepository _transactionRepository;
 
         public PaypalController(
             IOptions<BillingSettings> billingSettings,
-            PaypalClient paypalClient)
+            PaypalClient paypalClient,
+            ITransactionRepository transactionRepository)
         {
             _billingSettings = billingSettings?.Value;
             _paypalClient = paypalClient;
+            _transactionRepository = transactionRepository;
         }
 
         [HttpPost("webhook")]
@@ -48,8 +53,66 @@ namespace Bit.Billing.Controllers
                 return new BadRequestResult();
             }
 
-            var webhook = JsonConvert.DeserializeObject(body);
-            // TODO: process webhook
+            if(body.Contains("\"PAYMENT.SALE.COMPLETED\""))
+            {
+                var ev = JsonConvert.DeserializeObject<PaypalClient.Event<PaypalClient.Sale>>(body);
+                var sale = ev.Resource;
+                var saleTransaction = await _transactionRepository.GetByGatewayIdAsync(
+                    GatewayType.PayPal, sale.Id);
+                if(saleTransaction == null)
+                {
+                    var ids = sale.GetIdsFromCustom();
+                    if(ids.Item1.HasValue || ids.Item2.HasValue)
+                    {
+                        await _transactionRepository.CreateAsync(new Core.Models.Table.Transaction
+                        {
+                            Amount = sale.Amount.TotalAmount,
+                            CreationDate = sale.CreateTime,
+                            OrganizationId = ids.Item1,
+                            UserId = ids.Item2,
+                            Type = sale.GetCreditFromCustom() ? TransactionType.Credit : TransactionType.Charge,
+                            Gateway = GatewayType.PayPal,
+                            GatewayId = sale.Id,
+                            PaymentMethodType = PaymentMethodType.PayPal
+                        });
+                    }
+                }
+            }
+            else if(body.Contains("\"PAYMENT.SALE.REFUNDED\""))
+            {
+                var ev = JsonConvert.DeserializeObject<PaypalClient.Event<PaypalClient.Refund>>(body);
+                var refund = ev.Resource;
+                var refundTransaction = await _transactionRepository.GetByGatewayIdAsync(
+                    GatewayType.PayPal, refund.Id);
+                if(refundTransaction == null)
+                {
+                    var ids = refund.GetIdsFromCustom();
+                    if(ids.Item1.HasValue || ids.Item2.HasValue)
+                    {
+                        await _transactionRepository.CreateAsync(new Core.Models.Table.Transaction
+                        {
+                            Amount = refund.Amount.TotalAmount,
+                            CreationDate = refund.CreateTime,
+                            OrganizationId = ids.Item1,
+                            UserId = ids.Item2,
+                            Type = TransactionType.Refund,
+                            Gateway = GatewayType.PayPal,
+                            GatewayId = refund.Id,
+                            PaymentMethodType = PaymentMethodType.PayPal
+                        });
+                    }
+
+                    var saleTransaction = await _transactionRepository.GetByGatewayIdAsync(
+                        GatewayType.PayPal, refund.SaleId);
+                    if(saleTransaction != null)
+                    {
+                        saleTransaction.Refunded = true;
+                        saleTransaction.RefundedAmount = refund.TotalRefundedAmount.ValueAmount;
+                        await _transactionRepository.ReplaceAsync(saleTransaction);
+                    }
+                }
+            }
+
             return new OkResult();
         }
     }
diff --git a/src/Billing/Utilities/PaypalClient.cs b/src/Billing/Utilities/PaypalClient.cs
index b40900d09e..95281baf17 100644
--- a/src/Billing/Utilities/PaypalClient.cs
+++ b/src/Billing/Utilities/PaypalClient.cs
@@ -156,5 +156,87 @@ namespace Bit.Billing.Utilities
             public long ExpiresIn { get; set; }
             public bool Expired => DateTime.UtcNow > _created.AddSeconds(ExpiresIn - 30);
         }
+
+        public class Event<T>
+        {
+            [JsonProperty("id")]
+            public string Id { get; set; }
+            [JsonProperty("event_type")]
+            public string EventType { get; set; }
+            [JsonProperty("resource_type")]
+            public string ResourceType { get; set; }
+            [JsonProperty("create_time")]
+            public DateTime CreateTime { get; set; }
+            public T Resource { get; set; }
+        }
+
+        public class Refund : Sale
+        {
+            [JsonProperty("total_refunded_amount")]
+            public ValueInfo TotalRefundedAmount { get; set; }
+            [JsonProperty("sale_id")]
+            public string SaleId { get; set; }
+        }
+
+        public class Sale
+        {
+            [JsonProperty("id")]
+            public string Id { get; set; }
+            [JsonProperty("state")]
+            public string State { get; set; }
+            [JsonProperty("amount")]
+            public AmountInfo Amount { get; set; }
+            [JsonProperty("parent_payment")]
+            public string ParentPayment { get; set; }
+            [JsonProperty("custom")]
+            public string Custom { get; set; }
+            [JsonProperty("create_time")]
+            public DateTime CreateTime { get; set; }
+            [JsonProperty("update_time")]
+            public DateTime UpdateTime { get; set; }
+
+            public Tuple<Guid?, Guid?> GetIdsFromCustom()
+            {
+                Guid? orgId = null;
+                Guid? userId = null;
+
+                if(!string.IsNullOrWhiteSpace(Custom) && Custom.Contains(":"))
+                {
+                    var parts = Custom.Split(':');
+                    if(parts.Length > 1 && Guid.TryParse(parts[1], out var id))
+                    {
+                        if(parts[0] == "user_id")
+                        {
+                            userId = id;
+                        }
+                        else if(parts[0] == "organization_id")
+                        {
+                            orgId = id;
+                        }
+                    }
+                }
+
+                return new Tuple<Guid?, Guid?>(orgId, userId);
+            }
+
+            public bool GetCreditFromCustom()
+            {
+                return Custom.Contains("credit:true");
+            }
+        }
+
+        public class AmountInfo
+        {
+            [JsonProperty("total")]
+            public string Total { get; set; }
+            public decimal TotalAmount => Convert.ToDecimal(Total);
+        }
+
+        public class ValueInfo
+        {
+            [JsonProperty("value")]
+            public string Value { get; set; }
+            public decimal ValueAmount => Convert.ToDecimal(Value);
+        }
     }
 }
diff --git a/src/Core/Enums/GatewayType.cs b/src/Core/Enums/GatewayType.cs
index 5a9dcdbd76..a8ceff36d0 100644
--- a/src/Core/Enums/GatewayType.cs
+++ b/src/Core/Enums/GatewayType.cs
@@ -13,6 +13,8 @@ namespace Bit.Core.Enums
         [Display(Name = "Google Play Store")]
         PlayStore = 3,
         [Display(Name = "Coinbase")]
-        Coinbase = 4
+        Coinbase = 4,
+        [Display(Name = "PayPal")]
+        PayPal = 1,
     }
 }
diff --git a/src/Core/Enums/TransactionType.cs b/src/Core/Enums/TransactionType.cs
index 40ec69f31e..45baa68c06 100644
--- a/src/Core/Enums/TransactionType.cs
+++ b/src/Core/Enums/TransactionType.cs
@@ -5,6 +5,7 @@
         Charge = 0,
         Credit = 1,
         PromotionalCredit = 2,
-        ReferralCredit = 3
+        ReferralCredit = 3,
+        Refund = 4,
     }
 }
diff --git a/src/Core/Models/Table/Transaction.cs b/src/Core/Models/Table/Transaction.cs
index 2e6e6c6d91..637f40f403 100644
--- a/src/Core/Models/Table/Transaction.cs
+++ b/src/Core/Models/Table/Transaction.cs
@@ -17,7 +17,7 @@ namespace Bit.Core.Models.Table
         public PaymentMethodType? PaymentMethodType { get; set; }
         public GatewayType? Gateway { get; set; }
         public string GatewayId { get; set; }
-        public DateTime CreationDate { get; internal set; } = DateTime.UtcNow;
+        public DateTime CreationDate { get; set; } = DateTime.UtcNow;
 
         public void SetNewId()
         {
diff --git a/src/Core/Repositories/ITransactionRepository.cs b/src/Core/Repositories/ITransactionRepository.cs
index d1248cbe86..242dcfa3ce 100644
--- a/src/Core/Repositories/ITransactionRepository.cs
+++ b/src/Core/Repositories/ITransactionRepository.cs
@@ -2,6 +2,7 @@
 using Bit.Core.Models.Table;
 using System.Collections.Generic;
 using System.Threading.Tasks;
+using Bit.Core.Enums;
 
 namespace Bit.Core.Repositories
 {
@@ -9,5 +10,6 @@ namespace Bit.Core.Repositories
     {
         Task<ICollection<Transaction>> GetManyByUserIdAsync(Guid userId);
         Task<ICollection<Transaction>> GetManyByOrganizationIdAsync(Guid organizationId);
+        Task<Transaction> GetByGatewayIdAsync(GatewayType gatewayType, string gatewayId);
     }
 }
diff --git a/src/Core/Repositories/SqlServer/TransactionRepository.cs b/src/Core/Repositories/SqlServer/TransactionRepository.cs
index 0299c8288b..85f2ed35b5 100644
--- a/src/Core/Repositories/SqlServer/TransactionRepository.cs
+++ b/src/Core/Repositories/SqlServer/TransactionRepository.cs
@@ -6,6 +6,7 @@ using Dapper;
 using System.Data;
 using System.Data.SqlClient;
 using System.Linq;
+using Bit.Core.Enums;
 
 namespace Bit.Core.Repositories.SqlServer
 {
@@ -44,5 +45,18 @@ namespace Bit.Core.Repositories.SqlServer
                 return results.ToList();
             }
         }
+
+        public async Task<Transaction> GetByGatewayIdAsync(GatewayType gatewayType, string gatewayId)
+        {
+            using(var connection = new SqlConnection(ConnectionString))
+            {
+                var results = await connection.QueryAsync<Transaction>(
+                    $"[{Schema}].[Transaction_ReadByGatewayId]",
+                    new { Gateway = gatewayType, GatewayId = gatewayId },
+                    commandType: CommandType.StoredProcedure);
+
+                return results.SingleOrDefault();
+            }
+        }
     }
 }
diff --git a/src/Sql/Sql.sqlproj b/src/Sql/Sql.sqlproj
index 4886a29e50..b27395e88e 100644
--- a/src/Sql/Sql.sqlproj
+++ b/src/Sql/Sql.sqlproj
@@ -248,5 +248,6 @@
     <Build Include="dbo\Stored Procedures\Transaction_Update.sql" />
     <Build Include="dbo\Views\TransactionView.sql" />
     <Build Include="dbo\Stored Procedures\Transaction_ReadByUserId.sql" />
+    <Build Include="dbo\Stored Procedures\Transaction_ReadByGatewayId.sql" />
   </ItemGroup>
 </Project>
\ No newline at end of file
diff --git a/src/Sql/dbo/Stored Procedures/Transaction_ReadByGatewayId.sql b/src/Sql/dbo/Stored Procedures/Transaction_ReadByGatewayId.sql
new file mode 100644
index 0000000000..3aca795fc3
--- /dev/null
+++ b/src/Sql/dbo/Stored Procedures/Transaction_ReadByGatewayId.sql	
@@ -0,0 +1,15 @@
+CREATE PROCEDURE [dbo].[Transaction_ReadByGatewayId]
+    @Gateway TINYINT,
+    @GatewayId VARCHAR(50)
+AS
+BEGIN
+    SET NOCOUNT ON
+
+    SELECT
+        *
+    FROM
+        [dbo].[TransactionView]
+    WHERE
+        [Gateway] = @Gateway
+        AND [GatewayId] = @GatewayId
+END
\ No newline at end of file
diff --git a/src/Sql/dbo/Tables/Transaction.sql b/src/Sql/dbo/Tables/Transaction.sql
index 6f30cf6b39..0395bae353 100644
--- a/src/Sql/dbo/Tables/Transaction.sql
+++ b/src/Sql/dbo/Tables/Transaction.sql
@@ -18,7 +18,7 @@
 
 
 GO
-CREATE NONCLUSTERED INDEX [IX_Transaction_Gateway_GatewayId]
+CREATE UNIQUE NONCLUSTERED INDEX [IX_Transaction_Gateway_GatewayId]
     ON [dbo].[Transaction]([Gateway] ASC, [GatewayId] ASC);
 
 
diff --git a/util/Setup/DbScripts/2019-01-31_00_Transactions.sql b/util/Setup/DbScripts/2019-01-31_00_Transactions.sql
index 6e864c80f0..f559ac7308 100644
--- a/util/Setup/DbScripts/2019-01-31_00_Transactions.sql
+++ b/util/Setup/DbScripts/2019-01-31_00_Transactions.sql
@@ -18,7 +18,7 @@ BEGIN
         CONSTRAINT [FK_Transaction_Organization] FOREIGN KEY ([OrganizationId]) REFERENCES [dbo].[Organization] ([Id]) ON DELETE CASCADE
     );
 
-    CREATE NONCLUSTERED INDEX [IX_Transaction_Gateway_GatewayId]
+    CREATE UNIQUE NONCLUSTERED INDEX [IX_Transaction_Gateway_GatewayId]
         ON [dbo].[Transaction]([Gateway] ASC, [GatewayId] ASC);
 
 
@@ -222,3 +222,26 @@ BEGIN
         [Id] = @Id
 END
 GO
+
+IF OBJECT_ID('[dbo].[Transaction_ReadByGatewayId]') IS NOT NULL
+BEGIN
+    DROP PROCEDURE [dbo].[Transaction_ReadByGatewayId]
+END
+GO
+
+CREATE PROCEDURE [dbo].[Transaction_ReadByGatewayId]
+    @Gateway TINYINT,
+    @GatewayId VARCHAR(50)
+AS
+BEGIN
+    SET NOCOUNT ON
+
+    SELECT
+        *
+    FROM
+        [dbo].[TransactionView]
+    WHERE
+        [Gateway] = @Gateway
+        AND [GatewayId] = @GatewayId
+END
+GO