From my experience it goes like this
you have a submit form on your directory. It collects your name and email address (doesnt have to be the submitters paypal address)
They get sent to a page. The page does some processing and generates a paypal button. At this page the directory has an update to their database - an added row that sits and awaits payment.
When the user pays, paypal redirects some internal headers back to your server, sending back some info. The transaction ID, amount paid, email use, name and address etc are all stored into the directory database row that i mentioned before.
If they dont pay you can email them a direct paypal link, or a link to that page on your directory where the payment button is generated.
Does that make it any clearer?
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