When charging credit card with my paypal as my gateway on my iPod
touch I get success respond but l have to sign in to paypal to capture
the funds.

Hi, are you sure that "Auth Only" is not set in the the Settings of Swipe? To check:

1) Click the Home button twice on your iPhone/Touch
2) Click Settings
3) Click Swipe
4) Check to make sure Auth Only is turned off