PayPal Friends and Family: How It Works & When to Use It
Written by
Taylor DeJesus
Edited by
Joe Evans
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PayPal remains one of the most widely used digital payment platforms, thanks to its versatility and user-friendly interface. Among its many features, PayPal Friends and Family is a simple, low-cost way to send money to people you trust — like splitting rent with a roommate or reimbursing a friend for concert tickets. But how does family and friends PayPal work, exactly? And when is the best time to use it?
Below, we’ll cover the ins and outs of PayPal with Friends and Family, including what sets it apart from PayPal’s Goods and Services option, step-by-step instructions on how to send PayPal Friends and Family payments and when you might want to consider alternative methods.
Whether you’re new to PayPal or just need a quick refresher, this guide will help you understand how to use this feature safely and effectively.
What Is PayPal Friends and Family?
PayPal Friends and Family is specifically meant for personal, non-commercial transactions — like paying back a friend who covered your lunch or splitting vacation costs. Because these transfers are meant for people you already know and trust, there’s no built-in buyer or seller protection. You’re essentially transferring money with no frills attached.
How It Differs From PayPal Goods and Services
PayPal also provides a “Goods and Services” option for buying items or paying for professional services. When you use Goods and Services, you get protections like:
- Purchase Protection: PayPal may reimburse you if your item never arrives or isn’t as described.
- Seller Protection: Merchants have some coverage if a buyer falsely claims they didn’t receive their order.
Goods and Services, however, tends to include extra fees for the seller. By contrast, Friends and Family often has no user fees when they tap into a linked bank account or a PayPal balance, but it also comes without any dispute or claim process. This makes it ill-suited for buying items from people you don’t know.
How To Send Money Using PayPal Friends and Family
If you’re curious about how to send PayPal Friends and Family, rest assured it’s a quick process:
- Log In to PayPal
Go to their website or open the PayPal app, then sign in. - Select “Send & Request” or “Payments”
Desktop users typically see “Send & Request” in the top menu; in the app, look for “Payments.” - Provide the Recipient’s Details
You can enter an email address, phone number or PayPal username. Always confirm the details to ensure you’re sending money to the right person. - Pick “Friends and Family”
PayPal asks how you want to send the money. If you see an option like “Goods and Services,” switch it to “Friends and Family.” In some cases, if your recipient only has a business account, you might not be able to change this. - Enter the Amount and a Note
Type in the exact sum you want to send. Adding a short message — like “Pizza night” or “Thanks for covering that ticket” — can help you and recipients keep track of the payment. - Choose Your Funding Method
Decide whether to use your linked bank account, PayPal balance or a debit/credit card. - Review and Confirm
Double-check the details and click “Send Payment Now.” Your friend or family member usually gets a notification instantly.
Is There a Fee for Friends and Family?
Depending on how you fund your payment, you can often skip fees altogether.
If you’re using a PayPal balance or linked bank account for domestic transfers, it’s typically free. But if you decide to pay with a credit or debit card, PayPal usually charges around 2.9% plus a small fixed fee (often $.30 in the U.S.). International transfers also come with an additional fee, which might hover around 5% plus any currency conversion costs.
For more details on specific charges, look at our resource on PayPal Fees.
When Should You Use PayPal Friends and Family?
To make the best use of your Friends and Family features, you’ll need to know when to use them. Here’s a quick breakdown of when and where it’s right:
Best Times To Use It
- Sharing Expenses With Friends: Splitting rent, utility bills or a group gift.
- Paying Back Family Members: Sending a thank-you to mom for spotting you some cash when your wallet was empty.
- Non-Commercial Personal Transactions: Any casual payment between people who already trust each other.
When To Avoid It
- Buying from Strangers: If you’re purchasing an item on a marketplace or from someone you’ve never met, consider Goods and Services so you’re protected if something goes wrong.
- High-Stakes Transactions: Think twice about sending large sums via Friends and Family when you might need dispute resolution.
- Commercial or Business Purposes: If you’re paying for a service or a product, it’s safer to ensure you’re covered by Purchase Protection.
PayPal Friends and Family vs. Other Payment Methods
PayPal isn’t your only option for personal payments. Here’s how it compares to a few other well-known choices:
Venmo and Cash App
- Use Case: Quick, easy payments among friends.
- Advantages: Venmo has a social feed for transactions; Cash App is extremely straightforward.
- Limitations: Not ideal for business transactions, and fees may apply for instant transfers or when using credit cards.
Curious about the differences? Check out our comparison: Venmo vs. PayPal.
Zelle
- Use Case: Bank-to-bank transfers with zero fees.
- Advantages: Often built directly into your banking app, making it super convenient.
- Limitations: Offers no buyer or seller protection, much like PayPal’s Friends and Family.
Learn more in our Zelle overview.
PayPal Goods and Services
- Use Case: Buying or selling goods — especially from someone you don’t know.
- Advantages: Purchase Protection and Seller Protection if things go south.
- Limitations: Higher seller fees, not as seamless for quick personal payments.
If you’d like a full breakdown of how PayPal handles various scenarios, here’s an in-depth look at How PayPal Works.
Final Take to GO: Is PayPal Friends and Family Right for You?
When it comes to everyday transactions with people you trust, PayPal Friends and Family is tough to beat — often avoiding fees and providing a quick way to move money around. Just keep in mind that you won’t have recourse if you need a refund or run into a dispute. If you’re dealing with new or unfamiliar sellers, choose PayPal Goods and Services for added security.
Ready to dive deeper into how digital payments can streamline your finances? Check out our guide on Transferring Money Between Banks or get the specifics on PayPal Fees to ensure you’re never caught off guard by extra charges.
FAQ: Common Questions About PayPal Friends and Family
Despite PayPal being around for a while, it's only natural to have some logistical questions about some of its lesser known features. Here are some common questions that might pop up around PayPal Friends and Family:- Is PayPal Friends and Family free to use?
- Generally, yes -- as long as you’re sending money domestically from a linked bank account or PayPal balance. Using a credit or debit card or making international payments can trigger additional fees.
- How do I send funds using PayPal Friends and Family?
- Log into your PayPal account, choose “Send & Request,” input the recipient’s email or phone number, select “Friends and Family” as the transaction type, enter the amount, and confirm.
- Can I get a refund after sending PayPal Friends and Family?
- There’s no built-in refund process. Since it’s a personal payment, PayPal won’t help you recover your money if the other person refuses to cooperate.
- How do I know I sent a payment as “Friends and Family” and not “Goods and Services?"
- After you finalize the payment, check your transaction details or confirmation email. It should explicitly say “Friends and Family” or “personal payment.” If you see any note about “Purchase Protection,” you used Goods and Services.
- Why do some sellers prefer PayPal Friends and Family?
- They often want to bypass the fees that come with Goods and Services. However, this means the buyer isn’t covered by PayPal’s protection policies. It’s a risk you’ll have to weigh before sending money to someone you don’t know well.
Information is accurate as of Feb. 27, 2025
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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