PayPal Friends and Family scams: what is and isn't covered
Quick answer
PayPal's Friends and Family option is meant for people you know, such as splitting a lunch bill. These payments are not covered by Purchase Protection, and once you send one you cannot cancel or reverse it yourself. A seller who asks for Friends and Family on a purchase is a red flag, and PayPal says you should refuse.
Key points
- Friends and Family is for the everyday exchange of money between friends and family, such as splitting a lunch bill. It is not for buying from sellers.
- These payments are not covered by Purchase Protection, and a seller who pushes the option is a red flag.
- After you send one, you cannot cancel or reverse it. For a mistake, PayPal says to contact the recipient and ask for a refund.
- As of PayPal's fee page (May 19, 2026), balance or bank sends are free, cards cost 2.90% plus $0.30, and international sends add 5.00%.
- A suspicious money request can be cancelled under Activity on the website or declined in the app. If you do not recognize it, do not pay it.
On this page
- What is PayPal Friends and Family for?
- Why is a seller asking for Friends and Family a red flag?
- Can you cancel or reverse a Friends and Family payment?
- What does Friends and Family cost?
- How do you cancel or report a suspicious request?
- How do you lower the risk when splitting with friends?
- Frequently asked questions
What is PayPal Friends and Family for?
PayPal describes Friends and Family as an option for “the everyday exchange of money between you and your friends and family”, and its own example is splitting a lunch bill. That fits a roommate sending their half of the internet bill or a friend repaying a trip cost. It is not made for buying things from sellers.
PayPal’s send-money page puts the choice in one line each: choose “For Goods and Services” when you buy goods or services, and “For Friends and Family” when you send money to a friend or family member.
Why is a seller asking for Friends and Family a red flag?
PayPal says you should refuse when a seller pushes Friends and Family for a purchase, because the payment “won’t be covered by our Purchase Protection”. Goods and Services payments do receive Purchase Protection, and the seller pays a fee to receive one. A seller who asks you to switch is asking you to give up the cover that comes with the other option.
Say a stranger selling concert tickets sends their email address and asks you to pay as Friends and Family. If the tickets never arrive, there is no Purchase Protection claim to make. PayPal also says real estate, including residential and rental property, is not eligible for Purchase Protection, so a rental deposit sent to someone you have not verified has no cover either way.
Can you cancel or reverse a Friends and Family payment?
No. PayPal says that once you send money, you “won’t be able to cancel or reverse the payment”. If you make a mistake, including the wrong amount or the wrong payment type, PayPal says to contact the recipient and ask for a refund. A refund then depends on the recipient sending the money back.
That is why the check before sending matters: the name, the email or mobile number, the amount and the payment type. Treat a Friends and Family payment like handing over cash. Zelle works similarly once the other person has enrolled, as covered in can you cancel a Zelle payment.
What does Friends and Family cost?
As of October 2026, PayPal’s fee page (last updated May 19, 2026) lists no fee for a personal send funded from a PayPal balance or a bank account. Cards cost 2.90% plus a fixed fee, which is $0.30 in US dollars. International personal sends add 5.00% on top, with a minimum of $0.99 and a maximum of $4.99. A currency conversion adds its own charge.
Here is what a $60 send costs, say for a share of a dinner:
| How you send $60 | Fee | You pay |
|---|---|---|
| Balance or bank account, domestic | No fee | $0.00 |
| Card, domestic | 2.90% + $0.30 | $2.04 |
| Balance or bank, international | 5.00%, minimum $0.99, maximum $4.99 | $3.00 |
| Card, international | Card fee plus 5.00% | $5.04 |
The international fee bounds change the picture on other amounts. On $10, 5.00% is $0.50, so the $0.99 minimum applies. On $200, 5.00% is $10.00, so the $4.99 maximum applies. The fixed part of the card fee hurts small amounts most: a $20 share sent by card costs $0.88, which is 4.4%.
How do you cancel or report a suspicious request?
You cancel a money request, not a payment you already sent. On PayPal’s website, open Activity, choose the request, click Cancel and then Yes. In the PayPal app, tap Decline on the request.
If you do not recognize a request, PayPal says not to pay it. It also advises against calling any phone number in the request note or opening suspicious links. To report it on the website, find it in Activity and click Report. Declining or cancelling stops the request. It does not bring back a payment you have already sent.
How do you lower the risk when splitting with friends?
Send only to people you know, confirm the recipient’s details and pick the payment type that matches what you are doing: Goods and Services when you buy from a seller, Friends and Family when you pay a friend.
Fewer, larger payments also cost less by card, because the fixed $0.30 comes with each payment. A running balance in EvenOut means you send one payment for the net amount instead of a string of small ones, and “Settle up” records it. EvenOut records payments and does not move money. For the request side, see how to request money on PayPal. If a friend will not pay you back, friend owes you money and won’t pay covers what to do next, and PayPal Pools covers collecting from a group.
Frequently asked questions
Can you get money back if you pay Friends and Family?
Not through Purchase Protection, which does not cover these payments. If you sent the wrong amount or chose the wrong payment type, PayPal says to contact the recipient and ask for a refund. Do not count on PayPal returning the money after a scam.
Does requesting money from a friend cost anything?
As of PayPal's fee page, receiving a personal payment has no fee when no currency conversion is involved, and no separate fee for requesting money is listed. The sender pays any fee that applies to the way they fund the payment.
Is it safe to pay a landlord or a rental deposit with Friends and Family?
PayPal says real estate, including residential and rental property, is not eligible for its Purchase Protection, so neither payment type gives Purchase Protection for a rental. Confirm who you are paying before you send anything, and keep roommate payments to people you know.
What if a friend's account asks me for money?
Contact your friend on a phone number you already have before you send anything. PayPal's advice for a request you do not recognize is not to pay it, and not to call any phone number listed in the request note.
Sources
Checked October 6, 2026.
- PayPal: What are Friends and Family payment scams?
- PayPal: How do I send money?
- PayPal: How do I cancel or report a suspicious money request or invoice?
- PayPal: Fees
Keep reading
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- Guide Can you cancel or reverse a Zelle payment? You can cancel a Zelle payment only if the recipient has not enrolled yet. Once they enroll it cannot be canceled or reversed. Steps and a wrong-number example.
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