We currently have limited customer service staffing due to Coronavirus (COVID-19) safety precautions. We encourage you to find quick answers to your questions by searching the community forum, visiting our Help Center, or messaging us (message response times will be delayed). Thank you for your patience.
For small businesses who would like to apply for the Paycheck Protection Program, visit our application page. Our agents cannot take applications over the phone or provide you with the status of your loan. Join the discussion in the Community here.
New to the community? Welcome! Please read our Community Rules and Guidelines
A friends / family (or gift payment) is intended as a transfer of funds from family or friends to one another. For this reason, there is no processing fee when payment is made with bank or PayPal balance.
However as it is a “gift” payment, there is also no Buyer protection as no goods or services should have been exchanged.
If he was not a close mate or family member you should never use that option as it enables the seller to evade paying his paypal fees and negates your buyer protection at the same time. You would also not be able to open a dispute apart from one citing an unauthorised transaction (but that option is for hacked accounts so would be closed as you had authorised the transaction).
You also 'risk' having your account limited for using this option when you are purchasing goods as its against Paypal user agreement.
If you funded your paypal payment via a credit card then contact your card issuer and see if they will assist you but unfortunately as it was a 'gift' payment they may decline as well.