PayPal Friends vs Family vs Goods vs Services: Difference and Comparison

Online payments make money transfers a lot easier. With the advent of UPI methods and other ways to transfer money cashless, various money transfer applications have become popular.

Among those, PayPal is also quite a popular household name.

Key Takeaways

  1. Friends and Family transactions are meant for personal, non-commercial payments and don’t incur fees.
  2. Goods and Services transactions are designed for commercial purposes and include buyer protection but charge fees.
  3. Both are PayPal payment options but differ in their purpose, fees, and protections.

PayPal Friends And Family vs PayPal Goods And Services

PayPal Friends and Family is a transaction where money is sent to another person’s account without fees. This type of transaction is intended for sending money to friends and family members. PayPal Goods and Services is a type of transaction that is intended for commercial transactions. This type of transaction includes fees that the seller pays.

PayPal Friends And Family vs PayPal Goods And Services

PayPal Friends And Family is predominantly used for personal payments. The custom list includes only the people known to the person making payments regularly.

Some of the other ways to identify it include PPFF and PayPal FnF. It does not allow any commercial transactions, even in family businesses.

PayPal Goods And Services is eligible for traders and people who need to buy commodities daily. The provision of PayPal Buyer Protection makes it much more useful than its counterparts.

In case of default, a relay of steps is undertaken to ensure that the vendor followed all the guidelines.

Comparison Table

Parameters of ComparisonPayPal Friends And FamilyPayPal Goods And Services
DefinitionPayPal Friends And Family allows electronic transfer of funds between two individuals (acquainted with each other in most cases)The “sender” and “buyer” are the same as a normal business.
Protections OfferedNo protection is offered unless the payment is converted to Goods and Services. Transactions are completed and protected under PayPal Purchase protection.
Terms of ReferenceThe person asking for money is the “requester” while the person receiving is known to be a part of the “close network” (friends, family, etc). A 24.5% exchange rate is applied in commercial and non-commercial transactions.
Types of Payments SupportedIt allows users to make a single-click payment in addition to outsourcing requests. It allows users to make in-store payments as well as online payments.
International RatesA 4% exchange rate is applied in non-commercial transactions. A 24.5% exchange rate is applied in commercial as well as non-commercial transactions.

What are PayPal Friends And Family?

PayPal Friends And Family come to the rescue when a user needs to send gift cards or a small amount to near and dear ones.

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Even though the name includes “friends” and “family”, other financial associates and business partners are also covered under this ambit.

Irrespective of the relation the sender and receiver share, this mode of money transfer was created to facilitate non-commercial transactions. It is less complicated in comparison to GnS.

PayPal Friends And Family is mainly associated with personal accounts on PayPal. When selecting the business option, the user cannot access the features listed herein.

This demarcation came up earlier to ensure that the commercial and non-commercial transactions are handled separately, avoiding any defaults in payment.

Thus, the Friends and Family version does not allow users to save payments for later. In addition, people forming a part of the close network can control the family members’ accounts if need be.

PayPal Friends And Family is widely revered for its “Send and Request” feature. It allows the user to manage funds per others’ needs. The sender, on the other side, can transfer it with just one click.

What is PayPal Goods And Services?

PayPal Goods And Services, abbreviated as PayPal GnS, is known to be a breakthrough in the finance industry, thanks to the ease with which the sender can opt for various modes.

By goods, the company implies the purchase of commodities (that can be seen, touched, or felt by human sensory organs) of different monetary values.

On the other hand, services cover essential and non-essential services that might be needed at different times.

PayPal Goods And Services allows users to make transactions in two helpful ways – as a buyer or seller. In the former category, paying the amount instantly is unnecessary.

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This is because PayPal Purchase Protection aptly covers these transfers. A better relay of funds is ensured as it can be broken into parts or be substituted with some bonds in the future.

Contrarily, the sellers have to make sure the money (complete or partial amount, as per the deal) is transferred then and there. A dedicated cash account is also made in furtherance of this objective.

PayPal Goods And Services calls forth higher levels of security as the amounts transferred are mostly huge, owing to the persistence of bulk purchases.

Main Differences Between PayPal Friends And Family And PayPal Goods And Services

  1. PayPal Friends And Family covers non-commercial transactions, while PayPal Goods And Services covers commercial transactions.
  2. FnF offers less protection than the strict PayPal Business Protection associated with GnS.
  3. The requester requests money from people in the close network during FnF transactions while sellers and buyers trade seamlessly with GnS.
  4. Payment options include single-click for FnF, while GnS can be used for online and in-store payments.
  5. The average exchange rate is 4% for FnF and 24.5% for GnS.
References
  1. https://www.atlantafed.org/-/media/documents/banking/consumer-payments/research-data-reports/2018/the-2016-and-2017-surveys-of-consumer-payment-choice-summary-results/rdr1803.pdf
  2. https://www.ingentaconnect.com/content/hsp/jpss/2011/00000005/00000003/art00007

Last Updated : 13 July, 2023

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12 thoughts on “PayPal Friends vs Family vs Goods vs Services: Difference and Comparison”

  1. I find the details about PayPal Friends and Family and Goods and Services very helpful. The article provides a clear understanding of both options.

    Reply
    • The data provided about the transaction parameters and the protection offered make it easier to determine which option is best suited for different situations.

      Reply
    • The breakdown of the features and differences is quite comprehensive, and it’s useful to know how the payment options work based on specific needs.

      Reply
  2. The information about PayPal Friends and Family and Goods and Services is portrayed effectively. It’s a well-structured piece.

    Reply
  3. The article does an excellent job of breaking down the features, protections, and differences between PayPal Friends and Family and Goods and Services. Very well-written.

    Reply
  4. The in-depth comparison between PayPal Friends and Family and PayPal Goods and Services is very informative. The transaction details and the differences between the two are beautifully illustrated.

    Reply
    • The article is very well-structured and the comparison table greatly helps in understanding the different aspects of the two methods. Very insightful.

      Reply

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