What is PayPal Goods and Services: How to Use it
![What is PayPal Goods and Services](https://rates.fm/static/content/thumbs/388x218/4/f8/u6hdd6---c1034x582x50px50p--15eb29c20cebf9e0e12c400a159c7f84.jpg)
The popularity of PayPal for sending money between friends and family members is undeniable. However, currently, there is another type of transaction gaining increased attention, referred to as “Goods and Services”.
If you decide to buy something from a marketplace, receive services from a business, or purchase items in an online store, you need your transactions to be secure. This is where the “Goods and Services” payment method of PayPal comes into play. That is, PayPal provides purchase protection features so you are not scammed when shopping.
Stick around to find answers to how does Goods and Services work on PayPal, what are its main features and how to use it. We’ll also provide some safety tips to keep in mind.
Understanding PayPal Goods and Services
Before we discuss the basics of Goods and Services transactions, it’s important to understand what this payment method refers to:
- Goods are physical products that you can purchase from various businesses. It can be anything from a makeup product to a refrigerator.
- Services refer to various actions that you receive from someone, such as coaching, financial advice, or any other.
While it was not recommended, PayPal users previously could send money to sellers using the friends and family payment method. Now, the company changed its approach and no longer allows users to pay to business accounts by choosing this category.
The company has made this decision to increase the security of commercial transactions. Fraudulent activity is common online, so an added level of purchase protection offered by PayPal is definitely helpful.
How does PayPal Goods and Services work in terms of fees? There is a difference when you decide to fund accounts of friends or family and pay for goods and services. There are no fees when you send money directly to a friend’s PayPal account within the UK or the United States. However, PayPal charges a standard 2.99% transaction fee when you send money to a business account. A currency conversion spread will also apply depending on the currency. If a transaction is international, you will additionally have to pay a 1.5% fee.
Making Purchases with PayPal Goods and Services
Do you wonder how to use PayPal Goods and Services as a buyer? The entire process is extremely easy:
- Log in to your PayPal account. If you don’t have one, you should click “Sign Up” and complete the registration process.
- Once you log in, you should click the “Send & Request” tab at the top next to the Dashboard.
![Click the “Send & Request” tab](https://rates.fm/static/content/thumbs/388x248/d/bc/cdp5t4-909884fa9b28bb120cb2b3ba2a50dbcd.jpg)
- Next, you need to add the details of the recipient. This includes their phone number, name, and email address.
- You should then specify the amount and click “Continue.”
![You should then specify the amount and click “Continue”](https://rates.fm/static/content/thumbs/388x246/3/2a/vfxlvb-2120bad4db0bdf34068c537ad4f202a3.png)
- You will see the “What the payment is for?” and two options to choose from — “Sending to a friend or family” or “Paying for an item or service.” You should choose the latter.
![Two options to choose from — “Sending to a friend or family” or “Paying for an item or service”](https://rates.fm/static/content/thumbs/388x247/c/5a/duhrbq-960f5e7dbe4824ed63339a881ebf95ac.png)
- The last step is to confirm your payment.
The most important thing to remember when you make such payments is that the 2.99% fee will be added when you perform such online transactions, so you should have extra money on your balance.
How to Use PayPal Goods and Services as a Seller
If you are a business owner and want to receive money from clients via PayPal, the setup process is also straightforward:
- Log in to your PayPal account.
- Next, open the “Send & Request” tab shown at the top bar.
- Then click the “Request from anyone” option, which is located under “Request payments.”
![Click the “Request from anyone” option](https://rates.fm/static/content/thumbs/388x136/a/42/bsnfwv-300d05ab5585c0f625fe4db676f9f42a.png)
- After that, you should enter the email address of the client that you’re sending a request to and click “Next.”
![Enter the email address of the client](https://rates.fm/static/content/thumbs/388x178/6/06/ejjqhy-f9ef496ce059430256138110f56b0066.png)
- At this stage, you have to enter the required sum in the corresponding box.
- The last step is to click “Request payment” and confirm.
![Click “Request payment” and confirm](https://rates.fm/static/content/thumbs/388x351/8/ab/rl6nlb-ff4309e5e8472b943768062c78a49ab8.png)
Once the process is complete, your client should receive your payment request. If you are a seller but use your personal account for your business, it’s a good idea to set up a business account instead. In this way, you get a higher level of security and more analytic features.
Security and Safety Tips to Implement
You no longer have to wonder, “How does PayPal Goods and Services work for sellers and buyers?” Now, we can talk about some security tips you should consider implementing.
Don’t send money to strangers with the family/friends method
While you don’t pay a fee when you send money using friends and family methods, dealing with a stranger can lead to scams and fraudulent activity. To be eligible for purchase protection, you should always keep your commercial transactions separate, using the products and services variant.
Make sure you use two-factor authentication
Whether you are a seller or a buyer, it is recommended that you set up two-factor authentication (2FA). This will increase the security of your account without much effort. When you use 2FA, a code will be sent to your phone every time you log into your PayPal account.
Keep records of your transactions
It is crucial for sellers to keep records of all their transactions and save these details for at least six months. But it’s a good idea for buyers to adopt this practice as well. In case of any disputes, you will have all the proof of your transactions on hand.
![](https://rates.fm/static/content/thumbs/388x258/d/c3/5ldbap-865792e881bcf2749f3400ad98f19c3d.png)
Conclusion
In this article, we provided the answer to the question, “How does PayPal Goods and Services work for buyer and seller?” It is obvious that sending and receiving money with PayPal is easy, regardless of whether you choose it for business activity or personal use. When you select the “Goods and Services” transaction as a seller or a buyer, you get an additional level of security thanks to PayPal’s Purchase Protection. By choosing this option and implementing additional safety tips, you will get the most secure experience of using PayPal.