The term status indicates the state of the account or the service. For example, the status of your Payflow account is Live after you activate it, or it is Approved when you internet merchant account application is approved.
Your Payflow account or a service, such as Recurring Billing Service, can have either a Test or a Live status.
Test. All transaction information is sent to test servers at PayPal. You should run transaction or configure settings in Test status to get comfortable with the services. No money trades hands in test transactions.
Live. All transactions that you submit are sent to the financial institutions for processing and that real money is transferred. For your services, the settings that you configured when in Test status go into effect, and impact your transactions accordingly.
For more information, refer to Getting Started with PayPal Manager, available on the Documentation page.