PayPal Friends and Family Refund (2022 Facts)

What is a PayPal friend and family refund? How do I get a refund if I used the friends and family payment method? PayPal is a company that runs a website where people can buy and sell things. A lot of times, when people buy things, they ask for refunds.

What is PayPal?

Paypal is an online payment processing company that allows individuals and businesses to send and receive money electronically. Founded in 1998, Paypal has since become a widely used service for online transactions. In 2002, Paypal was acquired by eBay, and today it remains one of the most popular payment methods on the auction site. Paypal can also be used to make purchases on many other websites, and is generally considered a safe and convenient way to pay for online purchases.

If you're not familiar with Paypal, here's a quick overview of how it works: when you make a purchase using Paypal, you'll first need to create a Paypal account. Once you've done this, you can then link your account to a credit or debit card, or to your bank account. When you make a purchase using Paypal, the funds will be taken from your linked account and transferred to the seller's account.

You can also use Paypal to send money to other people; all you need is their email address. Paypal is a very popular payment method because it's quick, easy to use, and relatively secure. However, there are some drawbacks; for example, if you lose your Paypal password, there is no customer service number you can call to reset it. Additionally, Paypal charges fees for some transactions, so it's important to be aware of these before using the service.

Paypal friends and family refund

PayPal Friends and Family Refund

PayPal will no longer allow refunds for Friends and Family payments. This is because these types of payments are not covered by PayPal's Purchase Protection Program.

If you need a refund for any reason, you can either cancel the payment if it's still pending, or you can ask your friend or family member to reimburse you.

This change may be inconvenient for some users, but it's important to remember thatFriends and Family payments are not the same as regular PayPal transactions. These payments are not protected by PayPal, so it's up to the sender to make sure that they're sending the money to a trusted person.

If you're not sure whether or not you can trust the person you're sending money to, it's best to use a different payment method.

Paypal friends and family refund

How do I cancel a Friends and Family Payment on PayPal?

To cancel a PayPal payment, do the following:

  1. Start by logging into your PayPal account, which you can do on the app or on
  2. Second, go to the “Activity” tab
  3. Next, find the payment you want to cancel and click “Cancel.” Additionally, “Cancel” will be located under the payment. However, if it is not there, then you will not be able to cancel the payment
  4. Lastly, click “Cancel Payment” to finish the process

In general, it is very difficult to get a refund for a payment made through PayPal's Friends and Family program. If you have simply changed your mind about a purchase, or if the item you received was not as described, you will likely be out of luck.

The best course of action in these cases is to try to work things out with the person you made the payment to. If that is not possible, or if they are unwilling to refund your money, then your only option is to contact PayPal directly and ask for a refund.

However, even PayPal is unlikely to issue a refund in these situations, as the company does not protect Friends and Family purchases. So, while it is always worth asking, it is important to be aware that you may not be able to get your money back if you make a payment through PayPal's Friends and Family program.

What’s the difference between Friends and Family vs Goods and Services Payments?

There are only a couple of differences between Friends and Family and Goods and Services payments. First, Friends and Family payments are not covered by PayPal Purchase Protection. Second, you don’t have to pay any fees unless using a credit card to send payments. If you do use a credit card and have to pay a fee, then the person sending the money will pay it. However, there is an option with Friends and Family payments for the sender to pass the fee onto the recipient of the money. In general, Goods and Services payments offer more protection for the buyer, but at the cost of a small fee.

Note that when you pay for goods and services with PayPal, the payment is classified as a Goods and Services payment. This means that the merchant pays a fee to receive your payment, but your purchase is always covered by PayPal Purchase Protection.

This is in contrast to Friends and Family payments, which are not covered by Purchase Protection. Another difference between the two types of payments is that you can request a refund for a Goods and Services payment, but not for a Friends and Family payment. Therefore, if you are unsure about a purchase, it is best to use the Goods and Services option to ensure that you are protected.

Is there a possibility that PayPal will return my money if I'm scammed via family and friends?

According to PayPal, Friends and Family transactions are not protected by their Purchase Protection program. This means that if you're scammed through Friends and Family, it can be difficult to report the fraud and get your money back.

However, PayPal does have a resolution center where you can report fraudulent activity. You have 180 days after the activity to report it. PayPal will then take a look at your case and try to resolve the issue. If you're not satisfied with PayPal's resolution, you can also file a claim with your credit card company or bank.

How to report fraudulent activity, consult the following method:

  1. First, log in to your PayPal account. This will have to be done through and not the app, because the resolution center is only available online
  2. After logging in, continue to the “Resolution Center”
  3. Next, click “Report a Problem”
  4. Then, you need to select the payment that is the problem, and click “Continue”
  5. Afterward, you’ll have three options to choose from:
  6. “I didn’t receive an item I purchased”
  7. “The item I received was significantly not as described”, or
  8. “I want to report unauthorized activity.”
  9. After you have selected the reason, click “Continue”
  10. Follow the steps to finish reporting the fraudulent activity

How to report fraudulent activity to your bank or credit union, do the following:

  1. Contact your bank or credit union
  2. To contact your Credit Union, there should be a number on the back of your card
  3. To contact your bank, if you have a debit card, call the number on the back of your card or log into your banking app and locate the customer service number
  4. Explain the situation and follow the directions provided
  5. You may be asked to provide several details about the transaction
  6. You may also have to get a new card


Unfortunately, PayPal Friends and Family payments are not protected under the Purchase Protection program. This means that if you are not happy with a purchase made using this payment method, you cannot request a refund, create a dispute, or escalate to a claim. However, there are still some options available to you if you need to get a refund for a Friends and Family payment.

You can either cancel the payment (as long as it’s still pending), or your friend or family member can “reimburse” you. You can also contact PayPal support or your financial institution for help. In any case, it’s important to remember that Friends and Family payments are not covered by Purchase Protection, so be sure that you trust the person you’re sending money to before making a payment.

Favorite Resources

Our favorite resources are included below.

Job interview resources

Resume and cover letter resources

Job search resources

free interview question and answer full guide

Interview Question and Answer Guide (PDF)

Download our full interview preparation guide. Complete with common interview questions and example answers. Free download. No email required.

Download PDF
author: patrick algrim
About the author

Patrick Algrim is a Certified Professional Resume Writer (CPRW), NCDA Certified Career Counselor (CCC), and general career expert. Patrick has completed the NACE Coaching Certification Program (CCP). And has been published as a career expert on Forbes, Glassdoor, American Express, Reader's Digest, LiveCareer, Zety, Yahoo,, SparkHire,,, FairyGodBoss,, St. Edwards University, NC State University,, Thrive Global,, Work It Daily, Workology, Career Guide, MyPerfectResume, College Career Life, The HR Digest, WorkWise, Career Cast, Elite Staffing, Women in HR, All About Careers, Upstart HR, The Street, Monster, The Ladders, Introvert Whisperer, and many more. Find him on LinkedIn.

Fact checked: Our small and dedicated team rigorously evaluates every article, guide, and reference to ensure the information is accurate and factual. Learn more.


Help us by spreading the word