Should a business ever pay a private individual with Friends & Family?

philmophlegm
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Contributor

My company has a Paypal business account. We sell mostly secondhand items and we buy most of our stock from private individuals selling us their old collections. Usually we would pay the private sellers up front using Paypal payment for goods so that we get the cover. However, sometimes the individual will send us their collection and we then negotiate a price once we've received it. In those cases, we don't need the protection because we already have the goods, and it seems unfair for the seller to have to pay Paypal a fee for something we no longer need, so are we allowed to pay the private seller with Friends & Family, even though we don't actually know them? (We're in the UK)

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