Hello @charliebaldion,
Welcome to the PayPal Community Forum! I can certainly understand why you'd be hesitant when receiving a notification like this. There's no reason to to use 2 different payment processors - Square and PayPal - to complete a single payment. With that in mind, I would not recommend continuing with that transfer. Here are a couple resources you may find useful:
How do I spot a fake, fraudulent, or phishing PayPal email or website? What are common scams and how do I spot them?
I hope that helps!
- Jon K
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