User Subscription accepting payment via Paypal, not changing usergroup

[Cebby]

Just like the title says - I have a few levels of subscriptions setup for our members to make donations. We are receiving the funds in the paypal account and even getting a notification EM from them, but it seems Paypal isn't talking back to the forum to tell it the transaction was completed.

Subscriptions with corresponding primary usergroup changes are all setup.
Log/Stats both come up empty.
API test = passed

Questions:

• Does something need to be setup on the Paypal side? We have done nothing over there except setup a couple of email addresses.
  
• Is there a normal lag in Paypal reporting back to the forum? Over 4 hours had elapsed and nothing had changed.
  
• Is a new scheduled transaction needed to ping Paypal for the subscription info?
  
• I made a contribution as a test and found that it got refunded (this might have been someone in the org. doing it manually - trying to confirm)

Not that I think it has a beariing, but in phrases, I changed "Paid Subsciptions" to "Contributions"

TIA