How does Paypal determine if it is the receiving of a payment is personal, or for a service provided

[stephsticks]

Hello helpful people.

How does Paypal determine if it is the receiving of a payment is personal, or for a service provided? I.e How does Paypal know whether to charge fees or not for receiving money?

My Paypal account is not set up as a business account as I have never needed it for that use, but need to send an invoice for services provided, and also receive a personal payment.

Thanks for any help! Will give kudos etc

[kernowlass · Accepted solution]

@stephsticks 

Goods/services are charged and friends/family payments are not...regardless of account type.

However its against paypal rules to use the friends/family option for goods/services and can lead to a ban if you do (they don't like being done out of their fee).

Goods/Services Payments.

1. Invoice or Money Request.
2. Send money > Goods/Services.
3. Paypal.me link (if its a personal account then there should be the option to tick a box to make it a goods/services payment before you submit payment).

Friends/Family Payments.

1. Send money > friends / family (or trusted person).
2. Paypal.me link from a personal account where you don't select the option to make it a goods/services payment.

[stephsticks]

Thank you