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Anyone uses "friends and family" on Paypal to pay your suppliers/partners?

thomasparra

thomasparra

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May 30, 2020
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#1
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I am looking to pay a supplier/partner for a digital service, and I can pay him with either "for goods and services" or "friends and family". Apparently, the first option has a cost to it (for the supplier). The service has already been provided, and I don't need Paypal to protect me, I just want to send the payment. Can I send a large amount of money ($8,000) to him with friends and family?
 
#2
Yes, this is the way to go. If your PayPal accounts are from different countries (EEA counts as one as the EU regulations require it), PayPal will charge a nominal fee of about 5 US. If the receiving account he a business account, this option won't be available.

You can send hundreds of thousands like this in one transaction without any issues or question from PayPal. I regularly do this to cash out.
 
#3
You send regularly hundred of thousands through paypal as "friends and family" and you have never been questioned? That I questioning, impossible, PayPal will start freezing or locking your account and you can begin the process of a nice DD and other retarded procedures from PP.
 
#5
lory said:
You send regularly hundred of thousands through paypal as "friends and family" and you have never been questioned? That I questioning, impossible, PayPal will start freezing or locking your account and you can begin the process of a nice DD and other retarded procedures from PP.
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Yes. Really. No issues.
 
#6
Should be fine . It's the norm to use f&f . The reason why are chargebacks .You will just waste a lot of time and might end up loosing . ( " Refund fraudsters " )
 
#7
aniglo22 said:
Should be fine . It's the norm to use f&f . The reason why are chargebacks .You will just waste a lot of time and might end up loosing . ( " Refund fraudsters " )
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It really depends on the country. In Germany it is very widely used. Just across the Rhine in Switzerland you would never use it, Twint is for that. In the US, Zelle is usually the choice to go and in Hong Kong, you would use FPS or PayMe. In China, people would resort to WeChat Pay, while in Nigeria a bank transfer does it too.
 
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#8
Not sure if true but I heard that if you send through friends/family option that then you can no longer claim back any money if you get scammed as they will look at it as a donation instead of a sale. Would make this very risky imo.
 
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#9
Simon4466 said:
Not sure if true but I heard that if you send through friends/family option that then you can no longer claim back any money if you get scammed as they will look at it as a donation instead of a sale. Would make this very risky imo.
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They actually do reverse such payments in case the account was hacked. So better not count in it in either way.

But it is like with a bank transfer they you also cannot get back. Use your brain. In OP's case, it if perfectly fine. If you buy a 5 EUR bike part on a classified page too. If you buy a new iPhone at 50% off from a classified page, it is scam as it is simply too good to be true.
 
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#10
daniels27 said:
They actually do reverse such payments in case the account was hacked. So better not count in it in either way.

But it is like with a bank transfer they you also cannot get back. Use your brain. In OP's case, it if perfectly fine. If you buy a 5 EUR bike part on a classified page too. If you buy a new iPhone at 50% off from a classified page, it is scam as it is simply too good to be true.
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Indeed I will solely pay post execution, so I have no risk. I guess I will try friends and family then, hopefully I get no hold of funds from PP. Friends & Family is way cheaper for the vendor, as there is no fees compared to "goods and service" right?
 
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#11
thomasparra said:
Indeed I will solely pay post execution, so I have no risk. I guess I will try friends and family then, hopefully I get no hold of funds from PP. Friends & Family is way cheaper for the vendor, as there is no fees compared to "goods and service" right?
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Yes zero fees for him if you pay with balance. If he is from another region, you may pay 5 USD. But on $8000 you/he save about $250.

There normally are no hold for using this.
 
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#12
daniels27 said:
Yes zero fees for him if you pay with balance. If he is from another region, you may pay 5 USD. But on $8000 you/he save about $250.

There normally are no hold for using this.
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Thank you. Do you mean Paypal balance? Generally when I issue F&F and use a credit card I get 0 fee (Hong Kong based business account). This is crazy that some regions he would only pay a flat fee of $5 but as he is based in the US it's over 3%!
 
#13
thomasparra said:
Thank you. Do you mean Paypal balance? Generally when I issue F&F and use a credit card I get 0 fee (Hong Kong based business account). This is crazy that some regions he would only pay a flat fee of $5 but as he is based in the US it's over 3%!
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Sorry, maybe I wrote it ambiguous. If you use commercial payments, the fees are between 1 and 5% depending on country of sender, recipient and turnover discounts available to recipient. I think US is about 3.4% at the moment.

If you use family and friends, it is free for domestic from balance and up to 5 USD for international. If you use cards, pricing varies between regions. For US private accounts, it is 2.9%+0.3 USD:
https://www.paypal.com/webapps/mpp/paypal-fees
For Hong Kong private accounts, it is 3.4%:
https://www.paypal.com/hk/webapps/mpp/paypal-fees
For Germany private accounts, it is free:
https://www.paypal.com/de/webapps/mpp/paypal-fees
 
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#14
daniels27 said:
Sorry, maybe I wrote it ambiguous. If you use commercial payments, the fees are between 1 and 5% depending on country of sender, recipient and turnover discounts available to recipient. I think US is about 3.4% at the moment.

If you use family and friends, it is free for domestic from balance and up to 5 USD for international. If you use cards, pricing varies between regions. For US private accounts, it is 2.9%+0.3 USD:
https://www.paypal.com/webapps/mpp/paypal-fees
For Hong Kong private accounts, it is 3.4%:
https://www.paypal.com/hk/webapps/mpp/paypal-fees
For Germany private accounts, it is free:
https://www.paypal.com/de/webapps/mpp/paypal-fees
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Thank you. Every time I send a payment to a US individual in USD with Paypal (HK Business account) using a HK multicurrency card, I have never paid a fee using Goods and Services. However, with FF, there is between 3 to 6% in fees. Crazy lol. But haven't found a better option to pay my US suppliers, for these who do not want to share their banking details to me.
 
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#15
thomasparra said:
Thank you. Every time I send a payment to a US individual in USD with Paypal (HK Business account) using a HK multicurrency card, I have never paid a fee using Goods and Services. However, with FF, there is between 3 to 6% in fees. Crazy lol. But haven't found a better option to pay my US suppliers, for these who do not want to share their banking details to me.
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You can load your business account with balance first. Then you only pay 5 USD
https://www.paypal.com/hk/webapps/mpp/paypal-top-up

Otherwise, you can open a German personal account, add your debit card and then send the money.

Another option would be to send them a check, free with a US bank account or about 50 USD if you ask your local bank outside the US for a US bank check.
 
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#16
daniels27 said:
You can load your business account with balance first. Then you only pay 5 USD
https://www.paypal.com/hk/webapps/mpp/paypal-top-up

Otherwise, you can open a German personal account, add your debit card and then send the money.

Another option would be to send them a check, free with a US bank account or about 50 USD if you ask your local bank outside the US for a US bank check.
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Unfortunately, only a HK bank with HKD accounts can wire money to Paypal. No USD accepted, it's so bad. I would like to avoid opening a personal account as a freeze on my payments to my suppliers/partners would jeopardise my business pretty quickly.

I think I will keep using Paypal HK business with a HK credit card in USD. This way I have 0 fees on conversion or payment and I therefore transfer the fee to my supplier by selling with "Goods and Services". This way I have no fees and the supplier bears the cost. I am happy to send a ACH transfer but if the supplier does not want then they will have to bear the Paypal fees.
 
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#20
We do use Friends and Family most of the time. Unless you don't have any cancellations on your incoming "goods and services" payments (and you do have some payments of this type as well so PayPal is fed with some fees from time to time), they should leave you alone.

Just don't try to send too much at once if that's not your regular behaviour, because this may trigger some checks.
 
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