If you pay through F&F and get scammed by the seller, can you file a claim or dispute?

[AdilKrazey]

Hi, I am about to buy an iPhone from this seller, and he wants me to pay through Friends and Family. If I get scammed and never receive the item, can I chargeback or anything to get my money back in my account? Also I will be paying it using my Citizens Bank credit card, not my PayPal balance.

[kernowlass]

@AdilKrazey 

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 (when your Paypal account has been used to make the transaction without your consent).

You also 'risk' having your account limited for using this option when you are purchasing goods as its against Paypal user agreement.