(Apr 13, 2021 09:04 AM)jganjanski Wrote:  Not sure if this is the correct section for this,
But I browsed around and this fit best based on what I saw.

I have an individual who is going to send me around $740 USD in PayPal for BTC via. Friends & Family.

Is there a risk of him charging back? If he sends from balance am I guaranteed the money to be secured?

Any input would be appreciated.

(Apr 13, 2021 10:17 AM)Aeowulf Wrote:  That high amount, unless you trust them IRL or something, I wouldn't touch it. People avoid Paypal for a reason.

(Apr 13, 2021 10:06 AM)NoAgency Wrote:  Of course there is risk. If he is using stolen funds or scammed funds it can be taken back. If he is paying directly from his card the card can issue a chargeback. If it is an unathorized transaction it can be chargedback.

(Apr 13, 2021 10:04 AM)Neon™ Wrote:  There is no 100% guarantee. Even though it's widely known that F&F payments can not be refunded, I've come across cases where people successfully managed to get their money back from f&f deals.

(Apr 14, 2021 02:02 AM)Euro Wrote:  I've had someone attempt an F&F transaction with an "unauthorised transaction" claim but because I was selling intangibles, there was no way to be sure he wouldn't have the file, so I won that dispute but only because I wouldn't take no as an answer.

Worst case scenario, PayPal may have the last word, but your bank has the final say.

(Apr 14, 2021 02:15 AM)Big E Wrote:  That’s strange behaviour on PayPal’s part, to say the least.

PayPal T&Cs say that you can’t sell any goods or services using the friends & family option.

Surprise surprise, the T&Cs say that you should only use the friends & family option to send money between... you guessed it... friends & family.

Generally speaking, if you follow PayPal’s T&Cs, you will be protected in the vast majority of cases. PayPal has a bad reputation, but actually doesn’t deserve as much hate as they get. Sure, they’ve made some questionable policy decisions individually over the years, I have no doubt, but on the whole, I’ve found them to be generally supportive and quite customer orientated.

Over the years I’ve many times experienced PayPal chargebacks for unauthorised transactions when selling goods & services online. It’s a part of business, and if you run a business this is a cost you need to factor in. However, I have found that PayPal have been extremely supportive over the years, themselves taking the hit instead of my business when unauthorised claims were made.

At one point in 2013, my online eBay business was hit by a spate of unauthorised transaction claims, over the course of three weeks we received around £3,000 in claims for unauthorised transactions. Getting on the phone with my business partner to PayPal support was quite easy, and they were extremely supportive, removing the usual temporary holds they put on the funds to allow us to continue trading, and eventually, deciding 85% of the claim value in our favour. We later discovered that in fact, PayPal had fully refunded the whole of the claims, and had themselves taken 85% of the cost of the fraud, leaving us to pay roughly £450, which, while unpleasant, wasn’t crippling.

TL;DR: Depending on what you’re selling, PayPal can be a good option. If you’re selling tangible real world goods, PayPal has you covered pretty well. If you’re doing something that is within their TOS, they generally have you covered pretty well too.

If you’re doing something against PayPal TOS, you will likely end up losing a lot of money. This is how PayPal are able to support their customers who follow the TOS - and I personally think it’s a good idea.