Friends and family - Seller protection from Scams

[FantasticMrF]

Hi All,

Seems to be difficult to get a concrete answer on this one - but concerning F&F payments is it 100% safe for the seller?

I.e. if someone pays you using F&F for a sale, e.g. Gumtree or other ad, then are they able to raise a dispute (like they can when using goods and services).

Is this a 100% safe (for the seller) cash alternative.

[sharpiemarker]

@FantasticMrF 

Its not meant to be an alternative. You're not supposed to request Friends and Family payments for goods and services/sales. That is against the user agreement, PayPal fee avoidance and negating the buyer's purchase protection rights. If PayPal notices you missing the f&f feature, it can lead to permanent limitation of your account or disabling of the friends and family payment type on your account.

While there's risks to selling online, there are seller protections that PayPal provides if you follow the procedures. Read it to see if PayPal is a good fit for you business model, otherwise use another payment processor or change up your business model to fit or not sell items that are magnets to scams:

11. Seller Protection Programme

Or accept that you'll get the occasion unsuccessful transaction in exchange for access to millions of PayPal users and self-insure by putting a percentage of each sale aside towards covering disputes.

[FantasticMrF]

Thanks, I'll had a read. This isn't for a business per se but very occasional sales (e.g. mobile phone) which are not using eBay.  Therefore I can't afford or accept the occasional hit (scam) I need to have something 100% safe for me as a seller.

[kernowlass]

@FantasticMrF 

A buyer would not be able to open a Paypal dispute for 'non-receipt' OR 'not as described' as they would have no Paypal buyer protection.

However they can still open an 'unauthorised transaction' OR do a 'chargeback' (via their card issuer) and you may well lose as you would have no Paypal seller protection.