Whether sandbox mode works or not doesn't really make a difference. It would be best if you try a live transaction so you can see what the issue is.
To clarify: Live transactions using a credit card, through Paypal, without a Paypal account do not auto-return.
As a result, SmithCart does not confirm payment, issue emails or act as though anything has happened.
After a purchase, the user is given the 'Return to Merchant' link which returns them to the cart, but since there is no confirmation of the purchase, neither the customer nor store owner receives notification save for Paypal's emails, which do not include itemization, shipping charges, order number, etc.