Top PayPal story from The Verge: PayPal is ending fee-free Friends & Family payments for business accounts

From The Verge:

PayPal is putting new limits on a feature in its payment system that allows people to receive money without paying extra fees, the company recently announced. Starting July 28th, only personal PayPal accounts will be able to get funds via Friends & Family, a transaction method intended for trusted recipients.

There are two ways of sending money on PayPal: Friends & Family and Goods & Services. F&F is intended for paying your friend back for dinner, for example, or giving your kid some birthday money — you know who’s receiving the funds and what you’re paying them for. There’s typically no fee involved, but it also drops protections for issues that might come up, like refunds or scams.

G&S is intended for purchases, and money sent this way is subject to PayPal fees. Everyone hates fees! But with G&S, if the thing you buy isn’t as described, it’s damaged when it arrives, or it just never gets to the buyer, you can often easily get a refund for the purchase.

Many businesses handle transactions using a PayPal business account and take payments for goods and services through F&F, even though you’re technically not supposed to. The buyer might not realize the difference or care, or the business and the customer could agree to send cash that way to avoid seller fees. This is fairly common in many informal transactions, like people selling things on social media platforms — perhaps the buyer knows the seller personally and trusts that they’ll deliver. Sometimes sellers insist on F&F to avoid transaction fees, which causes problems if something goes wrong down the line.

Continue reading PayPal is ending fee-free Friends & Family payments for business accounts on The Verge

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