Dodo Payments Webhook Integration

Webhooks deliver real-time notifications when payment events occur. Use them to automate workflows, update databases, send confirmations, and keep your systems in sync.

When to use this skill

• Setting up a webhook endpoint to receive payment, subscription, or refund events
• Implementing signature verification to ensure webhook authenticity
• Handling specific event types (payment succeeded, subscription renewed, etc.)
• Testing webhooks locally during development
• Ensuring idempotent webhook processing to handle retries

Core Concepts

Webhook: An HTTP POST request sent by Dodo to your endpoint when an event occurs.

Signature verification: Cryptographic proof that a webhook came from Dodo, not an attacker. Required for production.

Idempotency: Processing the same webhook multiple times produces the same result. Use the webhook-id header to detect and skip duplicates.

Raw body: The exact bytes received from Dodo, before parsing. Required for signature verification.

Setup: Creating a Webhook Endpoint

1. Create the endpoint in the dashboard

1. Go to Developer → Webhooks
2. Click Create Webhook
3. Enter your endpoint URL (must be HTTPS in production)
4. Select the events you want to receive
5. Copy the signing secret

2. Store the signing secret

export DODO_PAYMENTS_WEBHOOK_KEY=whsec_...

The SDK reads this automatically. You can also pass it explicitly when initializing the client.

Webhook Headers and Payload

Every webhook request includes three required headers (all lowercase, hyphenated):

The request body is JSON:

{
  "business_id": "bus_xxxxx",
  "type": "payment.succeeded",
  "timestamp": "2024-01-01T12:00:00Z",
  "data": {
    "payload_type": "Payment",
    "payment_id": "pay_xxxxx",
    "status": "succeeded",
    "total_amount": 2999,
    "currency": "USD",
    "customer": {
      "customer_id": "cus_xxxxx",
      "email": "customer@example.com",
      "name": "John Doe"
    }
  }
}

Verification: The Centerpiece

Always verify the signature before processing. Unverified webhooks can be spoofed.

Preferred: SDK helper

The simplest and safest approach. The SDK handles all verification details.

TypeScript/Node:

import DodoPayments from 'dodopayments';
import express from 'express';

const app = express();
app.use(express.raw({ type: 'application/json' }));

// `environment` is a narrow union, but env vars are `string | undefined`.
// Narrow explicitly rather than casting, and default to test mode so a missing
// variable can never accidentally hit live.
const environment = process.env.DODO_PAYMENTS_ENVIRONMENT === 'live_mode' ? 'live_mode' : 'test_mode';

const client = new DodoPayments({
  bearerToken: process.env.DODO_PAYMENTS_API_KEY,
  environment,
  webhookKey: process.env.DODO_PAYMENTS_WEBHOOK_KEY,
});

app.post('/webhook', async (req, res) => {
  try {
    const unwrapped = client.webhooks.unwrap(req.body.toString(), {
      headers: {
        'webhook-id': req.headers['webhook-id'] as string,
        'webhook-signature': req.headers['webhook-signature'] as string,
        'webhook-timestamp': req.headers['webhook-timestamp'] as string,
      },
    });
    
    // Signature verified. Process the event.
    console.log(`Received ${unwrapped.type}`);
    res.json({ received: true });
  } catch (error) {
    res.status(401).json({ error: 'Invalid signature' });
  }
});

Python:

from typing import Literal
from fastapi import FastAPI, Request, HTTPException
from dodopayments import DodoPayments
import os

# `environment` is Literal["live_mode", "test_mode"], not str. Passing the raw
# variable through raises at construction: unset gives
# `ValueError: Unknown environment: None`, and a typo like "test" gives
# `Unknown environment: test`. Narrow it, defaulting to test mode so a
# misconfigured variable can never select live.
ENVIRONMENT: Literal["live_mode", "test_mode"] = (
    "live_mode" if os.getenv("DODO_PAYMENTS_ENVIRONMENT") == "live_mode" else "test_mode"
)

app = FastAPI()
client = DodoPayments(
    bearer_token=os.getenv("DODO_PAYMENTS_API_KEY"),
    environment=ENVIRONMENT,
    webhook_key=os.getenv("DODO_PAYMENTS_WEBHOOK_KEY"),
)

@app.post("/webhook")
async def handle_webhook(request: Request):
    try:
        unwrapped = client.webhooks.unwrap(
            await request.body(),
            headers={
                "webhook-id": request.headers.get("webhook-id", ""),
                "webhook-signature": request.headers.get("webhook-signature", ""),
                "webhook-timestamp": request.headers.get("webhook-timestamp", ""),
            },
        )
        # Signature verified. Process the event.
        return {"received": True}
    except Exception:
        raise HTTPException(status_code=401, detail="Invalid signature")

Go:

import (
	"io"
	"net/http"
	"os"

	"github.com/dodopayments/dodopayments-go"
	"github.com/dodopayments/dodopayments-go/option"
)

// The Go SDK has no WithEnvironment(string). It exposes two explicit options,
// so narrow here and default to test mode: an unset or misspelled variable must
// never select live mode.
func dodoEnvironment() option.RequestOption {
	if os.Getenv("DODO_PAYMENTS_ENVIRONMENT") == "live_mode" {
		return option.WithEnvironmentLiveMode()
	}
	return option.WithEnvironmentTestMode()
}

func webhookHandler(w http.ResponseWriter, r *http.Request) {
	client := dodopayments.NewClient(
		option.WithBearerToken(os.Getenv("DODO_PAYMENTS_API_KEY")),
		dodoEnvironment(),
		option.WithWebhookKey(os.Getenv("DODO_PAYMENTS_WEBHOOK_KEY")),
	)

	rawBody, err := io.ReadAll(r.Body)
	if err != nil {
		http.Error(w, "Cannot read body", http.StatusBadRequest)
		return
	}

	// Unwrap takes the raw body and the request headers directly. It is not
	// context-aware and does not take a map: the signature is
	// Unwrap(payload []byte, headers http.Header, opts ...option.RequestOption).
	if _, err := client.Webhooks.Unwrap(rawBody, r.Header); err != nil {
		http.Error(w, "Invalid signature", http.StatusUnauthorized)
		return
	}

	// Signature verified. Process the event.
	w.WriteHeader(http.StatusOK)
}

Alternative: standardwebhooks package

If you prefer manual verification or don't use the Dodo SDK:

import { Webhook } from "standardwebhooks";
import express from "express";

const app = express();
app.use(express.raw({ type: "application/json" }));

const webhook = new Webhook(process.env.DODO_PAYMENTS_WEBHOOK_KEY);

app.post("/webhooks/dodo", async (req, res) => {
  try {
    const payload = req.body.toString();
    await webhook.verify(payload, req.headers);
    
    const event = JSON.parse(payload);
    console.log(`Received ${event.type}`);
    res.json({ received: true });
  } catch (error) {
    res.status(401).json({ error: "Invalid signature" });
  }
});

unwrap() vs unsafeUnwrap()

• unwrap() verifies the signature. Use this for all production webhooks.
• unsafeUnwrap() skips verification. Use only for unsigned test payloads from dodo wh trigger.

Raw Body Requirement

Signature verification requires the exact bytes Dodo sent. If you parse the JSON first and then re-serialize it, the bytes change and verification fails.

Framework-specific setup:

Webhook Event Catalog

Dodo sends 40+ event types across nine domains. Subscribe to only the events you need.

Payment events

Subscription events

Refund events

Dispute events

License key events

Entitlement grant events

Credit events

These concern virtual credit entitlements, not monetary wallet balances.

Recovery and dunning events

Production-Grade Handler Pattern

Respond quickly after durably recording the event, process asynchronously, and use idempotency keys. In the worker, insert the idempotency claim and apply all durable business changes in one database transaction. If processing throws, the transaction rolls back the claim so the job can retry safely:

import DodoPayments from 'dodopayments';
import express from 'express';
import { Queue, Worker } from 'bullmq';

// BullMQ is illustrative; use your preferred durable async queue.

const app = express();
app.use(express.raw({ type: 'application/json' }));

// `environment` is a narrow union, but env vars are `string | undefined`.
// Narrow explicitly rather than casting, and default to test mode so a missing
// variable can never accidentally hit live.
const environment = process.env.DODO_PAYMENTS_ENVIRONMENT === 'live_mode' ? 'live_mode' : 'test_mode';

const client = new DodoPayments({
  bearerToken: process.env.DODO_PAYMENTS_API_KEY,
  environment,
  webhookKey: process.env.DODO_PAYMENTS_WEBHOOK_KEY,
});

type WebhookEvent = ReturnType<typeof client.webhooks.unwrap>;
type WebhookJob = { event: WebhookEvent; webhookId: string };

const connection = {
  host: process.env.REDIS_HOST ?? '127.0.0.1',
  port: Number(process.env.REDIS_PORT ?? '6379'),
};
const eventQueue = new Queue<WebhookJob>('webhook-events', { connection });

app.post('/webhook', async (req, res) => {
  let unwrapped: WebhookEvent;
  
  try {
    unwrapped = client.webhooks.unwrap(req.body.toString(), {
      headers: {
        'webhook-id': req.headers['webhook-id'] as string,
        'webhook-signature': req.headers['webhook-signature'] as string,
        'webhook-timestamp': req.headers['webhook-timestamp'] as string,
      },
    });
  } catch (error) {
    return res.status(401).json({ error: 'Invalid signature' });
  }
  
  // Durably enqueue before acknowledging, keyed by webhook-id for idempotency
  const webhookId = req.headers['webhook-id'] as string;
  try {
    await eventQueue.add(
      `process-${unwrapped.type}`,
      { event: unwrapped, webhookId },
      {
        jobId: webhookId, // Prevents duplicate queue entries
        attempts: 8,
        backoff: { type: 'exponential', delay: 1000 },
      }
    );
    return res.json({ received: true });
  } catch (error) {
    console.error('Failed to persist webhook', error);
    return res.status(503).json({ error: 'Webhook persistence failed' });
  }
});

// Async worker. webhookLog.webhookId must have a unique constraint.
const worker = new Worker<WebhookJob>(
  'webhook-events',
  async (job) => {
    const { event, webhookId } = job.data;

    await db.$transaction(async (tx) => {
      const claim = await tx.webhookLog.createMany({
        data: [{ webhookId, eventType: event.type }],
        skipDuplicates: true,
      });
      if (claim.count === 0) return;

      switch (event.type) {
        case 'payment.succeeded':
          await handlePaymentSucceeded(event.data, tx);
          break;
        case 'subscription.active':
          await handleSubscriptionActive(event.data, tx);
          break;
        // ... handle other events
      }
    });
  },
  { connection }
);

The handlers above must perform entitlement writes through tx. Queue emails or other external work through a transactional outbox; a database transaction cannot roll back an already-sent external request.

Delivery Semantics

Understand how Dodo delivers webhooks:

Framework Adaptor Shortcuts

If you use a supported framework, use the official adaptor package for built-in webhook handling:

Next.js example:

The adapter callback does not expose webhook-id, so this payment example uses payment_id as its stable key and commits the claim and durable fulfillment together. Use a handler that exposes webhook-id for event types without a verified stable identifier.

// app/api/webhook/dodo-payments/route.ts
import { Webhooks } from "@dodopayments/nextjs";

export const POST = Webhooks({
  webhookKey: process.env.DODO_PAYMENTS_WEBHOOK_KEY,
  onPayload: async (payload) => {
    // payload is already verified
    console.log(`Received ${payload.type}`);

    if (payload.type !== 'payment.succeeded') return;

    // webhookLog.webhookId must have a unique constraint. If fulfillment
    // throws, the claim rolls back and Dodo's redelivery can retry it.
    await db.$transaction(async (tx) => {
      const claim = await tx.webhookLog.createMany({
        data: [{
          webhookId: payload.data.payment_id,
          eventType: payload.type,
        }],
        skipDuplicates: true,
      });
      if (claim.count === 0) return;

      await handlePaymentSucceeded(payload.data, tx);
    });
  },
});

Handle subscription.active only in a handler that exposes webhook-id, then commit that claim and the entitlement changes in the same transaction.

Local Testing

Dashboard test tool

1. Go to Developer → Webhooks → [your endpoint] → Testing
2. Select an event type
3. Click Send Example
4. Verify your endpoint returns 200 and the signature verifies

CLI: Live forwarding

Forward real test-mode events to localhost:

dodo wh listen http://localhost:3000/webhook

This creates a test webhook, opens a WebSocket relay, and forwards events with valid signatures to your local URL. Requires a test-mode API key. The URL argument is required in direct mode — bare dodo wh listen only works as /wh listen inside the TUI.

CLI: Unsigned mock events

Generate realistic unsigned payloads for testing without signature verification:

dodo wh trigger payment.success http://localhost:3000/webhook

Use unsafeUnwrap() only for these unsigned payloads. Both arguments are required in direct mode.

Tunnel

Expose localhost with ngrok and register the HTTPS URL in the dashboard:

ngrok http 3000
# Register https://xxxx.ngrok.io/webhook in the dashboard

Common Mistakes

1. Signing only the payload or timestamp.payload

Wrong:

const signed = crypto.createHmac('sha256', secret)
  .update(payload)
  .digest('base64');

// or
const signed = crypto.createHmac('sha256', secret)
  .update(`${timestamp}.${payload}`)
  .digest('base64');

Correct: The signed message is webhook-id.webhook-timestamp.raw_body, all three parts joined by periods. Use the SDK helper to avoid this entirely.

2. Re-serializing the parsed body

Wrong:

const body = await req.json();
const signed = JSON.stringify(body); // Reordered, reformatted, breaks signature

Correct: Always use the raw bytes:

const body = await req.text(); // or req.body.toString() in Express
// Pass body directly to unwrap() or webhook.verify()

3. Naive comma-splitting of the signature header

Wrong:

const sig = signature.split(',')[1]; // Assumes exactly one comma

The header is versioned and can contain multiple values. Use the SDK helper.

4. timingSafeEqual throwing on length mismatch

Wrong:

crypto.timingSafeEqual(Buffer.from(expected), Buffer.from(provided));
// Throws if lengths differ; doesn't return false

Correct: Use the SDK helper, which handles this safely.

5. Granting access from return_url instead of verified webhooks

Wrong:

// User visits return_url after checkout; you grant access
app.get('/checkout/return', (req, res) => {
  grantAccess(req.query.customer_id); // Unverified!
});

Correct: Grant access only after receiving and verifying a webhook:

const event = client.webhooks.unwrap(rawBody, { headers });

if (event.type === 'payment.succeeded') {
  grantAccess(event.data.customer.customer_id);
}

6. Doing slow work before responding 2xx

Wrong:

app.post('/webhook', async (req, res) => {
  const unwrapped = client.webhooks.unwrap(...);
  
  // Slow database writes, email sends, etc.
  await db.payment.create(...);
  await sendEmail(...);
  
  res.json({ received: true }); // Dodo times out after 15s
});

Correct: Durably enqueue first, then respond immediately. Return non-2xx if persistence fails so Dodo retries:

app.post('/webhook', async (req, res) => {
  const unwrapped = client.webhooks.unwrap(...);

  try {
    await queue.add('process-event', unwrapped); // Durable write
    return res.json({ received: true });
  } catch (error) {
    console.error('Failed to persist webhook', error);
    return res.status(503).json({ error: 'Webhook persistence failed' });
  }
});

7. Acknowledging before durable persistence

Wrong:

res.json({ received: true });
await queue.add('process-event', unwrapped); // A crash can lose an acknowledged event

Correct: Verify the signature, durably insert or enqueue the event, and only then return 2xx. If persistence fails, return non-2xx so Dodo retries.

8. Committing an idempotency claim before fulfillment

Wrong:

const claim = await db.webhookLog.createMany({
  data: [{ webhookId }],
  skipDuplicates: true,
});
if (claim.count === 0) return;

await grantSubscriptionEntitlements(event.data); // A failure leaves the claim behind

The retry sees the existing claim and skips fulfillment, permanently dropping the event.

Correct: Commit the claim and all durable fulfillment changes in one transaction. A failure rolls both back, so the retry can claim the event again:

const event = client.webhooks.unwrap(rawBody, { headers });

await db.$transaction(async (tx) => {
  const claim = await tx.webhookLog.createMany({
    data: [{ webhookId, eventType: event.type }],
    skipDuplicates: true,
  });
  if (claim.count === 0) return;

  if (event.type === 'subscription.active') {
    await grantSubscriptionEntitlements(event.data, tx);
  }
});

Use a transactional outbox for email or other external effects that must follow the database commit.

Resources

• Webhook Documentation
• Event Catalog
• Standard Webhooks Spec
• Framework Adaptors
• CLI Reference