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SendGrid access & transactional email

How SendGrid teammates and API keys work, why sender authentication matters, and how to keep application email out of spam folders.

Difficulty
Intermediate

SendGrid sends the email your application generates — password resets, receipts, notifications, verification links. This is transactional email: triggered by something a user did, and expected to arrive within seconds.

Quick summary

Add people as Teammates under Settings, with restricted access rather than full admin. Applications authenticate with an API key scoped to Mail Send only. The single most important setup step is domain authentication — adding DNS records so your mail is signed by your own domain. Without it, delivery suffers badly.

Teammates and access

Open Settings → Teammates in the SendGrid dashboard.

Invite by email, choosing Restricted Access rather than Admin. The third option, Read-only Access, lets someone see a feature without changing it. Restricted Access then offers presets — Developer, Marketer, Accountant — or Custom Access if none of them fit.

Grant only what's needed. For diagnosing delivery problems, that's typically Mail Send, Stats, Suppressions, and Email Activity — not billing or teammate management. Be especially careful with Admin: an Admin teammate can create more teammates, including other Admins, and reach your billing settings.

Enable two-factor authentication. An account that can send mail as your domain is worth protecting.

How many people you can add depends on the plan: SendGrid's Free and Essentials plans allow one teammate per account, and its higher plans allow many more plus single sign-on. Invitations expire, so send them when the person is ready to accept.

API keys

Your application uses an API key, not a login. Create keys under Settings → API Keys. The permission choice matters: pick Custom Access and grant Mail Send only, rather than Full Access.

A full-access API key is a serious liability

Full Access grants every API endpoint full access to your account. That means a leaked key can send mail as your domain, read your activity, change settings, and create more keys — so an attacker can send convincing phishing from your own authenticated domain. Scope keys to Mail Send, store them as environment variables, and rotate on offboarding.

SendGrid displays a key's value only once, at creation. Store it immediately in your password manager and your hosting platform's environment variables.

Sender authentication

Before any meaningful volume, authenticate your domain. This means adding DNS records that let receiving servers verify the mail genuinely came from you.

Start domain authentication. Go to Settings → Sender Authentication, and click Get Started in the Domain Authentication section.

Add the DNS records SendGrid provides to your domain — see DNS access.

Verify in the dashboard. Records can take a little time to propagate.

Add a DMARC record once SPF and DKIM are passing. See SPF, DKIM and DMARC.

This is not just about spam folders. Google's own sender guidelines say messages that aren't authenticated with SPF, DKIM and DMARC may be marked as spam or rejected outright, and Google requires bulk senders to have all three.

Suppressions: why one person stops receiving mail

SendGrid maintains suppression lists — bounces, blocks, invalid emails, spam reports, and unsubscribes. An address on one of these lists stops receiving your mail, silently.

This is the usual explanation for "our customer never got their password reset". Check the Email Activity Feed and the suppression lists before assuming the application is broken. Addresses can be removed from a suppression list, but understand why it was added first — repeatedly mailing an address that reported you as spam damages your sending reputation.

Transactional and marketing must stay separate

Don't send newsletters from your transactional setup

If marketing mail generates spam complaints on the same domain or IP that sends your password resets, the resets stop arriving too. Use a separate subdomain — and ideally a separate service — for marketing. See transactional vs marketing email.

Common questions

Our emails go to spam. Where do we start?

In order: confirm domain authentication passes; check the From address is at your authenticated domain; confirm the recipient isn't on a suppression list; check whether marketing mail shares the domain. See improving deliverability.

Can we reply to these emails?

Not by default — SendGrid sends, it doesn't host mailboxes. Set the Reply-To header to a real monitored mailbox. A no-reply@ address guarantees you never see the customer who replies to explain what went wrong, which is usually reason enough to avoid it.

How do we know an email was delivered?

The Email Activity Feed shows a status per message — processed, delivered, deferred, opened, clicked, bounced, dropped, spam report — for recent messages. For anything longer-term, configure the Event Webhook so your application records delivery status itself.

Who should own the account?

You. It's tied to your domain's sending reputation — an asset that takes months to build and is difficult to transfer. See transferring ownership to you.

Need a hand?

If you're stuck, email support@chykalophia.com and we'll help. Include your website address and a screenshot if you can.

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