PayPal Friends and Family: A Comprehensive Overview
In a world with over 100 payment systems, PayPal stands out as the most popular and significant player: according to Statista data, the number of active PayPal accounts worldwide was 427 million in May 2024.
Among numerous other valuable features, this payment platform offers exceptional service for non-commercial transfers between close acquaintances, such as PayPal Friends and Family. Transactions occur within a tight circle, and the funds are intended for personal use only.
One of the main benefits of using PayPal for friends and family here lies in its rapid transfers and the absence of transaction fees for domestic transactions within the United States. This excludes any commercial or business-related operations. If a business account holder wishes to use this feature, they need to register a personal account.
How does PayPal Friends and Family work? How do you properly send and receive money through this service? The experts at Rates have put together a concise overview that will provide answers to all these questions.
Sending Money with PayPal Friends and Family
How do you send money using PayPal Friends and Family? Sending funds using this service is a straightforward process. Just follow these steps after logging into your account:
Choose "Send & Request" from the main screen.
![Choose "Send & Request"]()
In the "Send Money" section, enter the recipient's details: name, phone number, and email address.
![In the "Send Money" section, enter the recipient's details]()
- When prompted, select "Send money to friends and family."
Enter the payment amount and optionally add a note.
![Enter the payment amount]()
Choose your preferred payment method — linked bank account, PayPal balance, or connected debit/credit card.
![Choose your preferred payment method]()
- Click "Send."
It's important to remember that all transfers beyond the United States are considered international and are subject to a fee. The size of PayPal fees for Friends and Family transactions depends on the destination country and the type of cards the sender and recipient use. To check the fee, input the payment amount in the designated field—the calculation will be done automatically.
Personal transfers to your loved ones or friends are free if you use your PayPal balance or bank account. Using a card will entail a 2.9% + fixed fee ($0.30 USD). There's also a $60,000 limit on the amount you can send in a single transaction (relevant for the US). It’s worth noting that PayPal tends to cut it down to $10,000 per transfer, although there's no limit on the number of transactions. So, if your sum exceeds the limit, you can split it into multiple payments.
In case of an account breach, the sender can dispute PayPal transactions through the Friends and Family service using the same process as other transactions.
We also have answers to such popular questions as how does PayPal goods and services work and how to set up a PayPal account to receive money in our earlier articles.
Receiving Money with PayPal Friends and Family
How to receive transfers? It's super easy. Once your friend or family member sends you money, you'll receive a notification via email or the PayPal app letting you know that the funds have arrived.
The amount received will be added to your PayPal account. You can keep the funds in your balance for future purchases or transfer them to your linked bank account.
You can also receive funds from abroad using the Friends and Family service. PayPal supports international transactions and processes payments in various currencies. If your friend or family member is in a different country, they can send you money in their local currency. PayPal will automatically convert the funds into your country's currency.
However, remember that international transactions incur a fee. We recommend checking the exchange rates and applicable fees on the official PayPal website before making international transfers.
The answer to the question can I cancel a pending payment on PayPal can be found in our separate article.
Conclusion
PayPal Friends and Family is a convenient and speedy service that allows you to make transfers between friends and relatives. The presence of fees depends on how you make a payment with PayPal Friends and Family. There's no fee if the transaction is within the US; otherwise, the fee amount depends on the country and currency.
Set up PayPal, create a personal account, and enjoy all the benefits of transactions using the Friends and Family service.
