Everything works fine in a development/localhost environment.
When deploying to heroku, using sandbox/test credentials on a new app, and creating a new payment I am getting
A PayPal::SDK::Core::Exceptions::UnauthorizedAccess occurred in orders#create:
Failed. Response code = 401. Response message = Unauthorized.
Again, everything thing works in a development environment
Should I permit any specific domains (like in Facebook integration)?
If you are running a Rails application on a public server, there is quite a chance that the Rails environment is set to "production".
If you further use the config/initializers/paypal.rb and config/paypal.yml generated by the Paypal API SDK's standard generator, then:
So most probably you are attempting to communicate with the live API without knowing it. Changing the line to mode: sandbox should make you happy.
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