Difference between friends & family or goods and services PayPal

goods and services PayPal

Difference between friends & family or goods and services PayPal

You can send money to friends and family or pay for goods and services in the Send & Request tab at the top of the PayPal page.

If you’re sending a payment, payment types include:

  • Sending to a friend and family – used when sending money or a gift card to a friend or family member. Before you complete a payment, you can opt to pay the fee, or pass it onto the recipient by changing it to a Goods or Services payment, to be covered by PayPal Purchase Protection.
  • Paying for goods or service – used when buying an item or service from someone. When you make a purchase, the seller pays a small fee to receive your money. Your payment is covered by our protection policy automatically.

You can make a personal payment to anyone in the U.S. for free. Just make sure that you pay for the entire payment using your bank account or, if you have a PayPal Cash account or PayPal Cash Plus account, your balance. There is a small charge for payments made with a debit or credit card.

What is goods and services on PayPal?

The PayPal Goods and Services feature is about using PayPal to send, receive, and pay with funds. This covers all the methods of how money is distributed within the platform through PayPal accounts. There are two types of payments within PayPal. These include the following modes:

  • Goods: This refers to items that are not bought from eBay and other merchants. But this still represents a physical and tangible product that you can buy.
  • Services: This refers to intangible stuff like works performed by other people for you. This includes but is not limited to writing, SEO, web management, etc.

All of these have a corresponding fee when you process them through PayPal. Keep in mind that even if you are uncomfortable with the PayPal way of doing business, remember that you are always a business entity. To prosper and continue with these types of services, they need to find a way to benefit from our end. We use their services and products and pay them for it.

How does PayPal Goods and Services work?


When you are shopping on a website and click the “Buy Now” button or go through a payment system, PayPal will automatically process the payment as goods and services.

However, before the payment is complete, you can choose to pay the fee or pass it on to the person you are buying from. To transfer it, change the payment to a payment for goods and services that will be covered by PayPal’s Purchase Protection.


Sellers can use their personal PayPal accounts to accept money for the sale of goods and services. Upon receiving the money, you can keep the funds in a linked Cash Account or have the option of transferring the money to a bank account, debit or credit card.

If you use your personal PayPal account to sell goods and services frequently, it might be a good idea to get a PayPal business account instead. It is possible to convert your personal account to a business account if you want to test things out and make a decision later.

Pay for Goods and Services: Step-by-step

Paying for goods and services with PayPal is a simple process. Here’s how to do it:

  1. Open the PayPal site and login to your personal account.
  2. Click the ‘Send and request’ tab at the top of the page.
  3. Click on the button labeled ‘Pay for Goods and Services’.
  4. Input the recipient’s email address in the box and click ‘Next’.
  5. Input the amount of money you want to send to the recipient and add any additional notes in the text box below.
  6. Confirm the transaction and follow any additional prompts until you see a notification that the funds were transferred.

How do I change a PayPal friends and family payment to goods and services?

To change a PayPal friends and family payment to goods and services, you can follow these steps:

  1. Log in to your PayPal account.
  2. Click on the Send & Request tab.
  3. Click on the payment that you want to change the type for.
  4. Click on the Change link next to the payment type.
  5. Select Goods and Services from the dropdown menu.
  6. Click on the Change Payment Type button.

Note: You can only change the payment type for a pending payment. If the payment has already been sent, you cannot change it.

Is it safe to pay with PayPal goods and services?

For the most part, it’s safe to use the service and link your accounts to PayPal. The level of risk depends on what you use the service for. Buyers will find that PayPal is an easy and secure way to make purchases. Those risks aren’t unique to PayPal, but some sellers are unaware of potential problems.

What happens if I send money to a stranger using friends and family?

If you send money via friends and family to someone you don’t know, you lose all protection. PayPal will not cover you if you get scammed, fail to receive an item, or have other issues. Only use friends and family with people you know.

How do I send money?

With PayPal, you can send money to anyone who has an email address or a mobile phone number.

Here’s how to send money:

  1. Click Send & Request at the top of the page.
  2. Select from the 3 options.*
  3. Enter the email address or mobile number to whom you are sending money.
  4. Enter the amount you want to send and click Continue.
  5. Review and confirm the information on the screen and click Send Money Now.

*If you’re buying something, select Pay for goods and services. If you’re sending money to a friend or family member, pick Send to friends and family in the US or Send to friends and family internationally.

PayPal will send the recipient an email to let them know that you sent them money. If they don’t have a PayPal account, we’ll explain how to sign up for one. PayPal members must confirm their email address before the money can be credited to their PayPal account.

Once you send money, you are not able to cancel or reverse the transaction. Please check the details of this transaction carefully.


PayPal products and services are good for buyers and sellers who need to exchange money securely online.

When you use PayPal goods and services, the transaction is automatically protected by PayPal Purchase Protection, which can provide peace of mind for both parties. There are some fees involved in the transaction, which can add up if you are receiving money from abroad.


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