The Risks of Accepting Payment via PayPal Friends and Family FAQ
What is the PayPal “Friends and Family” Payout Option?:
Used when sending money or a gift card to a friend or family member. Before you complete a payment, you can opt to pay the fee, or pass it onto the recipient to be covered by PayPal Purchase Protection. This is a free way to collect payment.
What is the PayPal “Goods and Services” Payout Option?:
Used when buying an item or service from someone. When you make a purchase, the seller pays a small fee to receive your money. Your payment is covered by our protection policy automatically. This payment option includes a 2.9% + $0.30 charge.
Are Influencers, content creators, and creative freelancers considered “sellers” per PayPal’s acceptable use policy?
What are the risks of accepting money via PayPal’s friends and family payout option as a seller?
- Lack of Protection and limited ability to leverage PayPal’s team to resolve disputes
- Risk of Banned or Locked Accounts
- Risk of Investigation and suspension
How does Lumanu compare to PayPal?
With Lumanu, Creators will never pay more than $10 per transaction with no risk of locked accounts.
Lumanu was built specifically for creative businesses collaborating with brands.
Not only does Lumanu offer additional tools and benefits to help creators run their businesses more smoothly that are not offered by PayPal, but creators can rest assured that accepting money through Lumanu is a secure and compliant option.
To Learn more, read our full help article here.