It seems that paypal IPN has issues with non-standard http ports. I discovered this after a lot of head bangs against IPN simulator. So, do make sure that your public URL is “publicly” accessible and is on port 80 (or 443)
Also, don’t forget to enable “IPN hits” in the seller account that you are using.
For this, go to “Test Accounts”, logon to your sandbox account that you use to receive payments.
- Go to Profile
- Go to Selling Preferences and click Instant Payment Notification Preferences.
- Click Edit settings.
- In Notification URL, enter the public IPN URL.
- mark Receive IPN messages (Enabled).
Click the Save button.
Test your IPN