PayPal Friends and Family: Key Details What You Need to Know
In a world that has over 100 payment systems, PayPal managed to remain one of the most significant players for a long time. According to Statista, the number of active PayPal accounts worldwide reached 427 million in May 2024.
Among numerous other features, this payment platform offers non-commercial transfers between close acquaintances, such as PayPal Friends and Family. The only limitations here are that the program is limited to just several people and that the funds are intended for personal use only.
One of the main benefits of using PayPal for friends and family is its rapid transfers and the absence of transaction fees for domestic transactions within the United States. Note that this does not apply to any commercial or business-related operations. If a business account holder wishes to use this feature, they need to create a separate personal account.
How does the PayPal payment option Friends and Family work? How to 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
Ready to send money to a friend or relative? Sending funds using this service is a straightforward process that will take at most a few minutes. Just follow these steps after logging into your account:
Choose "Send & Request" from the main screen.
In the "Send Money" section, enter the recipient's details: name, phone number, and email address.
- When prompted, select "Send money to friends and family."
Enter the payment amount and add a note if you wish.
Choose your preferred payment method — linked bank account, PayPal balance, or connected debit/credit card.
- Click "Send."
Keep in mind that all transfers beyond the United States are considered international and are subject to a fee. The exact amount 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 entails a 2.9% + $0.30 USD fee. 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 in reality PayPal tends to cut the limit down to $10,000 per transfer, although there's no limit on the number of transactions you can make. So, if your sum exceeds the PayPal friends and family limit, you can simply split it into several payments.
In case of an account breach, the sender can dispute PayPal transactions through the Friends and Family service using the same process as with other transactions.
Receiving Money with PayPal Friends and Family
How to receive this kind of transfer? 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 balance. You can keep the funds in your PayPal account 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.
Can I cancel a pending payment on PayPal? The answer to the question can be found in our separate article.
Conclusion
So, how does PayPal Friends and Family work? It is a convenient and fast way to make transfers between friends and relatives. The fees you’ll have to pay depend on the funding source you use for Friends and Family PayPal transactions. Transactions within the US entail a 2.9% + $0.30 USD fee if you’re using your credit card; while the international transfer fee depends on the country and currency.
Finally, the feature is pretty easy to use. If you already have a personal PayPal account, you can already enjoy all the benefits of the Friends and Family service!
