Can people charge back friends and family (2018)

[JayTee3]

I checked old threads but they are from 2015/2016. Just wondering in 2018 can they charge back friends and family? Some sketchy guy wants to pay for virtual items and has no rep, but he says he'll pay through friends and family if im worried, if he pays through that and goes first, he can't charge back can he?

Thanks 🙂

[kernowlass · Accepted solution]

@JayTee3

Oh yes.

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 Seller protection as no goods or services should have been exchanged.

He could not open a Paypal dispute for non receipt of item OR item not as described as he would have no 'buyer protection'.

But he can open an unauthorised dispute OR do a chargeback via his credit card issuer if he funded his paypal payment that way and you would lose as you would have no 'seller protection'.

You also risk having your account limited for using this option when you are selling goods as its against Paypal rules.

Also even if you do sell and accept the goods / services option you would still have no Paypal seller protection as they do not cover virtual goods.

[Anonymous_User]

As the seller, it is never advisable to provide the buyer with your email address  and have then send you the money directly.  This opens up the option to send it as a personal payment, which will save you the seller fees, but will NOT be protect you if the payment is reversed. 

Best to send an invoice to the buyer, they pay, you get the money, you can then purchase and print your shipping label, annotate the tracking number in the account transaction notice and then ship.

However, as you are selling a virtual item your sale is not eligible for coverage under PayPal’s Seller Protection program as it involves intangible digital goods.  That's something to consider if you're concerned about selling virtual items as you can end up in pickle either way.