I LOaned a friend $500 and was charged $40, what did I do wrong

[Temp20230311a]

 I LOANED A FRIEND $1000, WHY WAS HE CHARGED $40 WHEN HE PAID ME BACK? WE ARE BOTH  BUSINESS PEOPLE AND BOTH HAVE PAYPAL

[kernowlass]

@Temp20230311a 

If he as the sender was charged then it sounds as if he used the friends/family option but funded it via a card.

F/f payments are only free if funded via funds in your balance OR bank account, if you use a card you pay the card issuers fee.