Should I use friends and family on PayPal to pay a seller I don't know?
Why friends and family is risky
PayPal's 'friends and family' option is meant for sending money to people you trust, like family or friends. It charges no fees to the sender, but it offers no buyer protection. If the seller turns out to be a scammer, you have no recourse through PayPal.
Scammers often ask you to use friends and family to avoid PayPal's fees and to bypass buyer protection. They may claim it's to 'avoid taxes' or because they're doing you a favor. Don't fall for it.
- No buyer protection or refunds
- No way to dispute the transaction
- Scammers commonly request this method
What to use instead
For purchases from strangers, always use 'goods and services.' This charges the seller a small fee (typically around 3%), but it gives you buyer protection. If the item doesn't arrive or is not as described, you can open a dispute and potentially get a refund.
If the seller insists on friends and family, consider it a red flag and walk away. You can also use a credit card directly, which offers chargeback rights, or a payment service like Venmo (with purchase protection) if you trust the platform.
- PayPal Goods & Services
- Credit card (for chargeback rights)
- Venmo with purchase protection (for eligible transactions)
Common mistakes
- Believing that friends and family is just a way to save on fees; it also removes your protection.
- Assuming PayPal will help you even if you used friends and family; they typically won't.
- Sending money to a stranger via friends and family because they promised a discount; that's a common scam tactic.
Related questions
- How can I verify a seller on eBay or Amazon Marketplace?
- What are red flags when buying from a stranger on Facebook Marketplace?
- How can I check if an online seller is legitimate before buying?
- What should I do if a seller asks me to pay outside the platform?
- Is it safe to buy from a seller with no reviews?