For the PayPal payments to be automatically registered by the Love Factory component, you must activate the IPN for your PayPal account.
How it works?
When someone makes a payment to your account, PayPal sends a notification to the website so it can know that the payment was made. This is called IPN (Instant Payment Notification).
But if you haven't activated the IPN, then no notification is sent and the Love Factory component doesn't know if a payment was made or not.
Information about activating IPN can be found under https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_admin_IPNSetup
Please make sure that the "Receive IPN messages" is checked.
Leave the "Notification URL" empty, as this value is already sent by the component when a user makes a payment.
Revised "Love Factory" version 1.2.x.