dodo-best-practices

Comprehensive guide for integrating Dodo Payments - the all-in-one payment and billing platform for SaaS and AI products.

INSTALLATION
npx skills add https://github.com/dodopayments/skills --skill dodo-best-practices
Run in your project or agent environment. Adjust flags if your CLI version differs.

SKILL.md

Dodo Payments Integration Guide

Always consult docs.dodopayments.com for the latest API reference and code examples.

Dodo Payments is the all-in-one engine to launch, scale, and monetize worldwide. Designed for SaaS and AI products, it handles payments, billing, subscriptions, and distribution without extra engineering.

Quick Reference

Environment Variables

  • DODO_PAYMENTS_API_KEY - Your API key from the dashboard
  • DODO_PAYMENTS_WEBHOOK_SECRET - Webhook signing secret for verification

API Environments

  • Live Mode: https://api.dodopayments.com (default)
  • Test Mode: https://api.dodopayments.com with environment: 'test_mode'

Dashboard URLs

  • API Keys: Dashboard → Developer → API
  • Webhooks: Dashboard → Developer → Webhooks
  • Products: Dashboard → Products

SDK Installation

TypeScript/JavaScript

npm install dodopayments

# or

yarn add dodopayments

# or

pnpm add dodopayments
import DodoPayments from 'dodopayments';

const client = new DodoPayments({

  bearerToken: process.env.DODO_PAYMENTS_API_KEY,

  environment: 'live_mode', // or 'test_mode'

});

Python

pip install dodopayments
from dodopayments import DodoPayments

client = DodoPayments(bearer_token=os.environ["DODO_PAYMENTS_API_KEY"])

Go

go get github.com/dodopayments/dodopayments-go
import "github.com/dodopayments/dodopayments-go"

client := dodopayments.NewClient(

    option.WithBearerToken(os.Getenv("DODO_PAYMENTS_API_KEY")),

)

PHP

composer require dodopayments/client
use Dodopayments\Client;

$client = new Client(bearerToken: getenv('DODO_PAYMENTS_API_KEY'));

Core Concepts

Products

Products are the items you sell. Create them in the dashboard or via API:

  • One-time: Single purchase products
  • Subscription: Recurring billing products
  • Usage-based: Metered billing per consumption

Credit Entitlements

Credits are virtual balances (API calls, tokens, compute hours) attached to products. Create them in Dashboard → Products → Credits:

  • Custom Unit: Your own metric with configurable precision
  • Fiat Credits: Real currency value (USD, EUR, etc.)
  • Attach up to 3 credits per product
  • Configure rollover, overage, and expiration per entitlement

Checkout Sessions

The primary way to collect payments. Create a checkout session and redirect customers:

const session = await client.checkoutSessions.create({

  product_cart: [

    { product_id: 'prod_xxxxx', quantity: 1 }

  ],

  customer: {

    email: 'customer@example.com',

    name: 'John Doe',

  },

  return_url: 'https://yoursite.com/success',

});

// Redirect customer to: session.checkout_url

Webhooks

Listen to events for real-time updates:

  • payment.succeeded - Payment completed
  • payment.failed - Payment failed
  • subscription.active - Subscription activated
  • subscription.cancelled - Subscription cancelled
  • refund.succeeded - Refund processed
  • dispute.opened - Dispute received
  • license_key.created - License key generated
  • credit.added - Credits granted to customer
  • credit.deducted - Credits consumed
  • credit.balance_low - Credit balance below threshold

Common Integration Patterns

One-Time Payment Flow

  • Create product in dashboard
  • Create checkout session with product ID
  • Redirect customer to checkout URL
  • Handle payment.succeeded webhook
  • Fulfill order / grant access
// Create checkout for one-time payment

const session = await client.checkoutSessions.create({

  product_cart: [{ product_id: 'prod_one_time_product', quantity: 1 }],

  customer: { email: 'customer@example.com' },

  return_url: 'https://yoursite.com/success',

});

Subscription Flow

  • Create subscription product in dashboard
  • Create checkout session
  • Handle subscription.active webhook to grant access
  • Handle subscription.cancelled to revoke access
// Create checkout for subscription

const session = await client.checkoutSessions.create({

  product_cart: [{ product_id: 'prod_monthly_subscription', quantity: 1 }],

  subscription_data: { trial_period_days: 14 }, // Optional trial

  customer: { email: 'customer@example.com' },

  return_url: 'https://yoursite.com/success',

});

Webhook Verification

Always verify webhook signatures:

import crypto from 'crypto';

function verifyWebhook(payload: string, signature: string, secret: string): boolean {

  const expectedSignature = crypto

    .createHmac('sha256', secret)

    .update(payload)

    .digest('hex');

  return crypto.timingSafeEqual(

    Buffer.from(signature),

    Buffer.from(expectedSignature)

  );

}

API Key Management

Generation

  • Navigate to Dashboard → Developer → API
  • Click "Create API Key"
  • Copy and securely store the key

Security Best Practices

  • Never expose API keys in client-side code
  • Use environment variables
  • Rotate keys periodically
  • Use test mode keys for development

Customer Portal

Allow customers to manage their subscriptions:

const portal = await client.customers.createPortalSession({

  customer_id: 'cust_xxxxx',

  return_url: 'https://yoursite.com/account',

});

// Redirect to: portal.url

Error Handling

Handle API errors gracefully:

try {

  const session = await client.checkoutSessions.create({...});

} catch (error) {

  if (error.status === 400) {

    // Invalid request - check parameters

  } else if (error.status === 401) {

    // Invalid API key

  } else if (error.status === 429) {

    // Rate limited - implement backoff

  }

}

Testing

Test Mode

  • Use test API keys (start with sk_test_)
  • Test webhooks with dashboard tools
  • Use test card numbers:
  • 4242 4242 4242 4242 - Success
  • 4000 0000 0000 0002 - Decline

Local Development

Use ngrok or similar for webhook testing:

ngrok http 3000

Then configure the ngrok URL as your webhook endpoint in the dashboard.

Framework Integration

Next.js

Use API routes for server-side operations:

// app/api/checkout/route.ts

import { NextResponse } from 'next/server';

import DodoPayments from 'dodopayments';

const client = new DodoPayments({

  bearerToken: process.env.DODO_PAYMENTS_API_KEY!,

});

export async function POST(req: Request) {

  const { productId, email } = await req.json();

  const session = await client.checkoutSessions.create({

    product_cart: [{ product_id: productId, quantity: 1 }],

    customer: { email },

    return_url: `${process.env.NEXT_PUBLIC_URL}/success`,

  });

  return NextResponse.json({ url: session.checkout_url });

}

Express.js

import express from 'express';

import DodoPayments from 'dodopayments';

const app = express();

const client = new DodoPayments({ bearerToken: process.env.DODO_PAYMENTS_API_KEY! });

app.post('/create-checkout', async (req, res) => {

  const session = await client.checkoutSessions.create({

    product_cart: [{ product_id: req.body.productId, quantity: 1 }],

    customer: { email: req.body.email },

    return_url: 'https://yoursite.com/success',

  });

  res.json({ url: session.checkout_url });

});

Resources

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