PayPal PPFF: Unmasked and Reviewed

Papal Family and Friends

Fees are one of the most expensive aspects of our credit repair company. Who would have guessed that one of the most difficult aspects of earning money would be moving it around?

Many individuals avoid paying fees by selling off-platform, mismarking payments, paying cash under the table, and so on.

However, not all methods of avoiding fees are harmful. PPFF is a popular solution for consumers who wish to shift money without paying fees. While it works, there are major hazards for both the sender and recipient (or buyer and seller, as the case may be).

What is PayPal PPFF?

PayPal PPFF is PayPal’s Friends, Friends, and Family money-transfer service. PPFF differs from PPGS (PayPal Payment for Goods and Services) in that it does not charge a fee and does not include PayPal’s Purchase Protection.

PPFF is only accessible in the United States and a few other countries.

The Goal of PPFF

Paypal PPFF Info

The goal of PPFF is exactly what it sounds like: to donate money to friends and family. It is intended to be a fee-free method to transfer cash, divide expenses with pals, send money to your children/parents, and so on.

There is no cost if you transfer money using your PayPal balance (or a connected bank account). There is still a card processing charge if you transfer money using your debit card.

You give up PayPal’s Purchase Protection as a result. In principle, this is good since you shouldn’t require security if you’re transferring money to friends and relatives.

When there are items involved, PayPal’s Purchase Protection is mainly designed to safeguard the buyer. If an item is considerably different from what you anticipated (or the vendor does not supply the item), you may make a claim with PayPal and get your money back.

How PPFF Is Misused

PayPal’s average charge for transferring money is 2.9 percent + $.30 per transaction. This is automatically paid by the receiver of the funds (the seller) when the funds arrive in their account.

To avoid this tax, persons who sell locally or on forums usually specify that their selling price is only valid if paid using PayPal PPFF. If the buyer pays with PPGS, the vendor asks an additional 3-4 percent to cover costs.

This is often a “innocent” effort to avoid paying a price for the service being used. However, it exposes the consumer to a major issue.

If the vendor is selling something in an unreported condition and the customer pays with PPFF, the buyer has no recourse.

As an example:

Brandon decides to list his hiking backpack for sale on a famous camping message board. He persuades the buyer to use PayPal’s Friends and Family service to pay. Then one of three things may occur.

  1. Brandon delivers the bag to the customer, and everything goes well.
  2. Brandon delivers the bag to the customer, but it stinks, has a damaged zipper, and is not in the condition he promised.
  3. Brandon makes the decision to retain the backpack (and the money)

The buyer is out of luck in cases 1 and 2. They claimed to be transferring money to a trusted friend or family member, with no merchandise in exchange. They are unable to file a claim and do not have Purchase Protection.

So, Should You Make Use of PayPal PPFF?

Without a doubt. PayPal PPFF serves its intended function well.

You might be burnt if you use it incorrectly.

You should never use PPFF to pay for a product or service, according to common sense. Even if you trust the individual, you should pay the charge for the service you are using.

There are several instances that we do still choose to use PPFF and just accept the risks. For example, if you are buying something that is inexpensive or that you will never return, you may opt-out of PayPal’s Purchase Protection.

The Verdict

You’ll be OK as long as you utilize PayPal’s PPFF appropriately. Just make sure you don’t use it to pay for anything or you’ll put yourself up to scammers.

If the explicit objective of PPFF is not to offer people money, use something else.

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Francesca Castillo