Family and Friends get money back with credit card

Mitch2211
Contributor
Contributor

Hello together, I bought something with family and friends and used my creditcard. The user I bought something got banned. Is it possible to stop my payment with the creditcard somehow?

Login to Me Too
3 REPLIES 3

kernowlass
Esteemed Advisor
Esteemed Advisor

@Mitch2211 

 

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), which would be automatically closed as you did authorise the initial payment.

Be careful as using that option for purchasing goods is against Paypal rules and can lead to account limitation.

If you funded your Paypal payment via a credit card then contact your card issuer and see if they will help you but unfortunately they may decline as well as it was a gift payment. If you succeed then you may find your account limited as you broke paypal rules by using that option to pay.





Advice is voluntary.
Kudos / Solution appreciated.
Login to Me Too

J330
Contributor
Contributor

To answer your question more directly rather than imply what might happen if you do, yes, you can, and I have, just don't make it a practice.  Since that one event, I avoid all sellers circumventing PayPal fees, and the associated 1099-K income tax evasion that motivates that whole scam to start with. People simply do not want to pay income tax on personal property sales, and in spite of all the feedback PayPal has received on this problem, there aren't any new warnings implemented to warn people of the consequences.  

The consequence is for the individual demanding you pay with Friends and Family online to do business with him right in his ad description or other communication through forums and classifieds.  The URL should go in the notes on any online payment.  I contacted PayPal directly on the phone first, talked to a live agent, who had no issue with me filing a credit card dispute and I did.  She mentioned my lengthy track history over many years of incident free transactions would come into consideration, and the SELLER suffered the consequences, not me, since he was doing this routinely.  The SELLER's "friends and family" transaction turned into "Good and Services," PayPal got their fee immediately, along with a $15 dispute charge on his account, so the agent informed me is often the procedure. 

Login to Me Too

kernowlass
Esteemed Advisor
Esteemed Advisor

@J330 

 

Lucky you, however I am informing them of what may happen so they can make an informed choice.

This is from seeing the many posts on here from folks that have been banned for using the friends/family option for purchases.

As we do not know the account status of the poster its best that they are aware of the possible consequences in advance.


Advice is voluntary.
Kudos / Solution appreciated.
Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.