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What's the difference between friends and family or goods and services payments?

When you send money, we ask you to choose a payment type. You can send money as:

  • a personal payment to friends and family (“Sending to a friend”)
  • a purchase for goods and services (“Paying for an item or service”)

Personal Payments

Choose “Sending to a friend” for the everyday exchange of money between you and your friends and family. You can use personal payments when you send money as a gift, split a lunch bill, pay your share of living expenses, or something similar.  

We don’t cover personal payments under PayPal Buyer Protection. 


There may be a fee depending on how you make the payment and if it's an international payment. Go to our Fees page for more information.

Purchases for Goods and Services

Choose “Paying for an item or service” when buying a good or service. You can use this type of payment when you pay for an item you won in an auction, buy merchandise online, download music, or something similar.

We cover eligible goods and services payments under PayPal Buyer Protection.


When you make this type of payment, the seller pays a small fee to receive your money. Go to our Fees page for more information.


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Why can I no longer send friends and family payments to Business accounts? Why can my Business account no longer receive friends and family payments?

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