How to use PayPal Friends and Family—and how not to use it | ZipBooks

PayPal is a popular requital central processing unit for businesses and individuals—but things get messy when you mix the two. here ’ sulfur everything you need to know about PayPal friends and family transfers ( and a few friendly warnings as well ). note : The following applies to Personal PayPal accounts. If you have a PayPal Business account, friends and family payments may not be available to you .

What is PayPal friends and family?

When you send or request money through your personal PayPal report, you can choose whether it’s a “Friends and Family” payment or a “Goods and Services” payment. 

PayPal—Choose Sending to a friend Friends and Family payments are much used to pay back a acquaintance, deliver money to family members abroad or send digital giving cards .

How do I use PayPal friends and family?

In order to send money using PayPal friends and family, both you and the recipient need to have a PayPal history ( you can set one up for free ). Sending money with PayPal friends and family only takes a few steps:

  1. Login to your PayPal account .
  2. clickSend & Request .
  3. Under Send money , Enter phone number, email or contact name .
  4. When prompted, selectSending to a friend .
  5. Enter requital amount, add a note ( optional ) andSubmit .

PayPal Send a Payment Note: PayPal friends and family may not be available in some countries.  You can besides send friends and syndicate payments using the PayPal app or PayPal.Me. The serve is pretty similar on the app—you just enter the payment total before selecting whether or not it ’ s a friends and syndicate payment. PayPal Friends and Family Mobile

How much does it cost to use?

Friends and Family payments can be made to anyone in the U.S. for free (from your bank account or PayPal).  If you are sending money internationally, you may be charged a transaction fee equal to 5 % of the air measure ( up to $ 4.99 USD ). When you pay with a debit or credit poster, you ’ ll be charged a small process fee—for both domestic and external transactions. presently the rate is 2.9 % + a cook tip ( varies by currency ; $ 0.30 in the U.S. ) .

Can you get scammed on PayPal friends and family?

unfortunately, yes. But you can always count on Michael Scott to get you out of a jam hera ’ s a effective rule : If they’re not your friends and family in real life, they shouldn’t be your friends and family on PayPal.  occasionally, sellers will request that you make a purchase using PayPal friends and family rather than the traditional Goods and services payment. This can be a convincing argument as there is no fee required, meaning they may offer you a discounted pace.

Don ’ t take the bait. In fact, using PayPal friends and family for clientele purchases is explicitly against their User agreement : “ You must not use the “ mail money to a acquaintance or class extremity ” feature in your PayPal report when you are paying for goods or services. ” business owners know this angstrom well as should never ask you to pay in this way. Take it as a red pin and equitable pay the goods and services fee. As one drug user commented “ 3 % is a belittled price to pay for peace of beware ”

Does PayPal reimburse fraudulent payment requests? 

While PayPal does protect against “ Goods and Services ” scams, Paypal does not  reimburse “payments sent using PayPal’s friends and family functionality.” frankincense, the following information only applies to goods and services payments made from personal PayPal accounts. Items and services payments are protected by PayPal Purchase Protection. here ’ s what that means :

  • Your full moon fiscal information is not shared with sellers
  • Transactions are encrypted and monitored 24/7
  • All global transactions are covered

For Buyers

According to PayPal ’ sulfur policy, you ’ re protected if :

  1. You ’ re charged for something you didn ’ t bargain
  2. Your orderliness never arrives
  3. Your holy order arrives, but it ’ south unlike than report

If any of these things happen to you, PayPal guarantees to reimburse the full cost of the leverage plus any embark costs ( good make sure you report the problem within 60 days of the transaction date ). PayPal asks that you work with the seller first, but if they refuse to hit the “ Issue a Refund ” release, you can open a dispute in the Resolution Center .

For Sellers 

For Sellers, the protection guarantees are reasonably similar. Particularly, PayPal covers against two types of buyer complaints :

  • “ Unauthorized Transaction ”
  • “ Item not received ”

however, in order for Sellers to be protected by PayPal they need to have proof of delivery or dispatch and be upfront with all the details. Learn more here .

Are there any alternatives to PayPal friends and family?

For clientele transactions, pretty much any business alternative is better than PayPal friends and family—Square, Stripe, even PayPal Business. In general, requital processors that are designed for buying and selling goods always afford better security—and they tend to have pretty fair rates. For example, ZipBooks barren invoice allows digital payments for businesses, so you have better security and get paid faster. If you are actually transferring money between friends and family, PayPal is precisely one option. There are tons of great peer-to-peer payment apps out there. My go-to is Venmo, but I ’ ll permit you compare for yourself.

About Tim Tim is Founder and CEO of ZipBooks. He keeps his desk very nice and bang-up .

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