The Friends and Family payment type lets you send money to people you know without PayPal charging you a transaction fee
When you send money as Friends and Family on PayPal, the recipient gets the full amount you send, and you pay no fee. This is different from a standard payment, where PayPal takes a cut. The tradeoff is that Friends and Family payments have no buyer or seller protection — if something goes wrong, PayPal won't step in to reverse it.
You can send Friends and Family payments from your PayPal balance, linked bank account, or linked debit card. The recipient doesn't need to do anything special on their end — they just need an active PayPal account. The money usually arrives within minutes if you're both in the same country.
Key Takeaways
- Friends and Family payments carry no transaction fee for the sender, but also no protection if the recipient doesn't send goods or services as promised.
- You can only send Friends and Family payments to people you actually know — PayPal's terms prohibit using this option for purchases from strangers or businesses.
- The payment arrives in the recipient's PayPal account within minutes in most cases, though international transfers may take longer.
- If you're paying for goods or services, use a standard PayPal payment instead, because Friends and Family offers no recourse if you don't receive what you paid for.
Steps to send a Friends and Family payment
Log into your PayPal account on the website or open the PayPal app. Click the "Send money" button (on the website, this is in the top navigation; in the app, it's usually a paper airplane icon or labeled "Send").
Enter the recipient's email address or phone number. PayPal will show you if that person has an account. Type the amount you want to send. Below the amount field, you'll see a dropdown menu that says "Goods and services" or similar. Click that dropdown and select "Friends and Family" or "Send to a friend".
Review the details — the recipient's name, the amount, and the payment method you're using (your PayPal balance, bank account, or debit card). Click "Send now" or "Send money". PayPal will show you a confirmation screen with a transaction ID. The recipient will see the payment in their PayPal account almost when ready.
When Friends and Family is the right choice
Use Friends and Family when you're splitting a bill with someone you know, sending a birthday gift, or reimbursing a friend for something they bought on your behalf. These are situations where you trust the person and there's no risk of a dispute.
Friends and Family is also the right choice if you're sending money to family members in another country. International transfers through Friends and Family usually cost less than a standard international payment, though the exact fee depends on the countries involved and the amount.
When you should not use Friends and Family
Do not use Friends and Family if you're paying for goods or services from someone you don't know well or from a business. If the seller doesn't send what you paid for, PayPal won't reverse the transaction. You'll have no recourse except to contact the person directly and ask them to refund you.
PayPal's terms of service say Friends and Family is only for transfers between people who know each other. If PayPal detects a pattern of Friends and Family payments that look like business transactions, they may limit your account or ask you to explain the activity. Using Friends and Family to avoid seller fees is against PayPal's rules.
What happens if something goes wrong
If the recipient says they never got the money, you can ask PayPal to look into it. PayPal can see whether the payment was delivered to the recipient's account. If it was, PayPal won't reverse it — the recipient has the money, and it's between you and them to sort out.
If the recipient received the money but won't send you the goods or refund you promised, PayPal will not intervene. Friends and Family payments have no buyer protection. Your only options are to contact the recipient directly, ask them to send the money back, or pursue the matter outside PayPal (small claims court, credit card chargeback if you used a card, or other legal action).
If you believe the recipient's PayPal account was hacked and used to receive your money fraudulently, contact PayPal's fraud team. They can investigate whether the account was compromised, but they won't reverse the payment unless they find evidence of unauthorized access.
Changing a Friends and Family payment to a standard payment
Once you've sent a Friends and Family payment, you cannot change it to a standard payment. The payment type is locked in at the moment you send it. If you realize you should have sent a standard payment instead, you'll need to ask the recipient to refund you and then send a new payment with the correct type.
Before you hit "Send now", double-check the payment type dropdown. It's straightforward to miss, and it's the most common reason people send the wrong type of payment.
Frequently Asked Questions
Can I send Friends and Family payments internationally?
Yes. International Friends and Family payments usually arrive within one to three business days, depending on the recipient's country and bank. PayPal may charge a currency conversion fee, but there's no transaction fee like there would be for a standard international payment. Check the fee estimate before you send.
What if I accidentally sent Friends and Family instead of a standard payment?
Contact the recipient and ask them to refund the money to your PayPal account. Once they do, send a new payment using the standard "Goods and services" option. This is the only way to get buyer protection after the fact.
Does the recipient need to do anything to receive a Friends and Family payment?
No. The money goes directly into their PayPal account. They'll see a notification that they received money, but they don't need to accept it or take any action. The payment is theirs once it arrives.
Can I send Friends and Family payments to a business?
PayPal's terms say no. If you're paying a business for goods or services, use a standard payment instead. Sending Friends and Family to a business violates PayPal's rules and could result in account limitations.
Is there a limit to how much I can send as Friends and Family?
PayPal's sending limits depend on your account history and verification status. New accounts have lower limits than established ones. Log into your account and check your "Sending limits" page to see your current maximum. The limit is the same for Friends and Family and standard payments.