PayPal is a well-known money service business that offers low-cost domestic and international transfers compared to traditional banking services. Paypal transactions are almost instant, so it comes as no surprise the company has over 346 million active users.
You can use PayPal’s Friends & Family service to send money to your known and close contacts. In contrast to Goods and Services transactions, Friends and Family payments are not covered by PayPal’s Buyers Protection, which makes getting a refund virtually impossible.
Can You Refund PayPal Friends and Family Payments?
PayPal does not offer refunds for payments sent using the Friends and Family functionality. There might be a workaround to bypass this strict PayPal refund policy, though.
If you made the Friends and Family transaction with your credit card instead of your PayPal balance, you could also contact the bank that issued the card and reverse the payment.
Why Do Scammers Love PayPal Friends and Family?
Friends and Family transactions are subject to lower transaction fees—for the domestic U.S. and UK payments, you don’t need to pay any. For international Friends & Family transfers, the cost goes up to 5% of the amount wired.
That is precisely why a lot of shady sellers insist on using the Friends and Family option and avoiding the additional transaction fees. PayPal classifies the Friends and Family transactions as non-refundable, so scammers rely on keeping your funds after the fact and will always do their best to sway you to use this payment type.
It’s best to use the Friends and Family functionality only for transferring funds to your close contacts. For online purchases, spend a few more bucks on the standard Goods and Services transactions and invest in the Buyer's Protection program.
How To Get a PayPal Friends And Family Refund on Your Own
If you prefer to handle the refund request by yourself, there are a few different approaches. You can try to prove that the transaction occurred as a result of a hacked account and ask for a refund directly from PayPal, or you can go through your bank.
There are two means to request a refund from PayPal:
- PayPal Resolution Center
- On-site Messaging
Request a PayPal Family and Friends Refund Through the PayPal Resolution Center
Follow the instructions to request a refund via the Resolution Center:
- Log in to your PayPal account
- Go to the Resolution Centar
- Hit the Report a Problem button
- Select a transaction you would like refunded
- Click on the pop-up to report a problem with the transaction
- Click Continue
- Fill in relevant details about the fraudulent activity
- Click on Submit
- Check your email for a response
How To Request a PayPal Refund for Friends and Family via Chat
Follow the instructions ahead to request a refund via on-site messaging:
- Log in to PayPal
- Open the Messenger
- Initiate the chat
- Describe the fraud
- Follow the ensuing instructions
How To Request the Friends and Family Refund Through Your Bank
As Friends and Family transactions are non-refundable by default and proving that your account was hacked is not an easy feat, your safest bet is to request a PayPal chargeback from your bank.
To go through your bank, follow the steps below:
- Call your financial institution at the number found on the back of your credit card
- Describe the situation to the representative
- Follow their instructions
Keep in mind that your bank will need substantial evidence that the transaction in question was not authorized. The process of investigation can last for several weeks, so it’s not an instant solution.
Be advised that PayPal doesn’t look kindly on these requests. Make sure to request it only if you are scammed. Otherways, you may get on bad terms with PayPal.
How To Get a PayPal Friends and Family Refund With DoNotPay
DoNotPay is the most elegant solution for getting a refund from any company. Our artificial intelligence system will automate the refund request for you and supply the relevant legal documents to support your case.
To request a refund via DoNotPay:
- Go to DoNotPay via your
- Locate Chargeback Instantly
- Click on Get Protected
- Fill in the details regarding the payment
You can choose to send the dispute letter yourself or let us do that for you.
The latter option is recommended as we can contact the merchant to build additional evidence for your case.
If you have questions about a refund for the Goods and Services payments, our PayPal refund policy article has all the answers you may need.
Can You Request a Refund Via
PayPal Resolution Center
DoNotPay Can Help You With Other PayPal Services, Too
If you are a regular user of PayPal, you might want to check out our articles for more info on Paypal refunds. Check out the following articles to learn more about:
- How long does a PayPal refund take
- Hot to get a PayPal refund for Goods and Services payments
- How to get a PayPal chargeback protection
How Can I Check the Status of My Friends and Family PayPal Refund?
All of your requests and their respective statuses will be listed in your PayPal Resolution Center.
The refund status can be:
- Pending: A refund is pending when PayPal hasn't received the funds from the buyer's bank or because the seller issued an eCheck that hasn't been cleared with their bank. It takes 3–5 business days for the amount to be shown in your PayPal balance
- Refunded or Partially Refunded: If your status is one of those, it means that the refund is done. The money should be back on your credit card or PayPal balance
- Temporary on hold: If your refund status is "held," this means that the transaction is refunded before the money even left your bank account. This process takes 3–5 business days, and the refund will be credited to your account once the process is completed
When Will the Friends and Family PayPal Refund Be on Your Account?
PayPal refunds take up to 30 days to be processed, depending on your payment method. If you manage to prove that the transaction was made by a hacker, here is when you can expect your funds to be back:
Original Payment Method
|When Will You Get a Refund?|
Your refund will be credited to your PayPal balance. From there, you can transfer it to your bank account. It usually takes three to five days for the money to show on your bank account
Debit or Credit card (including PayPal Credit)
|Your refund will show up on your credit or debit card balance within 30 days of the request|
You’ll get the refund on your PayPal balance the same day it is issued
PayPal balance and credit card
If the transaction was paid from both, you would get a refund of the respective amounts to each payment method (the same day the refund is issued for the PayPal balance and up to 30 days for the credit card)
DoNotPay Protects Your Privacy and Finances
Sharing your credit card details online comes with certain risks, and it’s getting more difficult to tell good and bad websites apart. With DoNotPay’s virtual credit card generator, you will be able to protect your identity and bank account from cyber scammers.
Whenever you run into a suspicious email or website, generate a virtual credit card and proceed without worries. Our virtual cards also work like a charm if you want to avoid automatic payments after free trials.
How Else Can DoNotPay Take Your Burden Away?
At DoNotPay, we are hell-bent on protecting customer rights from sleazy corporations and unethical businesses. We offer help and assistance in multiple areas to make your life easier and less stressful.
Here is a list of some of the chores we can help with or completely resolve for you:
- Disputing traffic tickets
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- Getting revenge on robocallers
- Scheduling a DMV appointment fast and easy
- Getting refunds and compensation for delayed or canceled flights
- Requesting refunds from other companies
- Signing up for free trials risk-free
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- Contesting parking citations
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- Protecting yourself from stalking and harassment
- Suing individuals and companies in small claims court
- Signing up for clinical trials
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You can register for and use the DoNotPay app in a .
PayPal no longer provides refunds for Friends and Family payments. This is due to the fact that PayPal's Purchase Protection Program does not cover these types of payments. You may cancel your payment if it is still pending or if you want a refund. You can also request reimbursement from the seller.How do I get a guaranteed refund on PayPal? ›
You have 180 days from the payment date to open a dispute. In a dispute, you can message the seller through PayPal to try to resolve any issues. If you cannot resolve the dispute, you have 20 days to escalate the dispute to a claim. In a claim, we investigate the case and decide the outcome.How do I get my PayPal money off hold? ›
The good news is you can usually move out of this status by confirming your identity and building up a history of positive selling activity. You haven't sold in a while. When your selling activity has been dormant for a long time, it'll also take time to rebuild a history of positive buyer-seller transactions.How do I get a refund on PayPal without a balance? ›
If you don't have enough money in the account to cover the refund, the full amount of the refund will instead be issued from your linked bank account. The PayPal refund policy indicates that banks may take up to five days to process transactions, so that method can significantly slow the refund.Will PayPal refund me if I get scammed? ›
Yes, PayPal refunds money if you've been scammed while using the platform. So, if you buy something using PayPal and the transaction turns out to be fraudulent, PayPal will often return your money.Do I have to claim PayPal Friends and family? ›
TLDR; does PayPal report to IRS on Friends And Family? The answer is no, there are no PayPal taxes for receiving money via friends and family. You are only required to report any taxable income you earn through these platforms on your income tax return.How long does it take to get a refund from PayPal friends and Family? ›
If the seller agrees to the refund, you'll receive your return differently depending on the original payment method. If you used a bank account or your PayPal balance, your refund can take three to five days. If you used a credit or debit card, refunds can take a bit longer – up to around 30 days.Can I sue PayPal for not refunding me? ›
You may be able to sue PayPal in a small claims court. Make sure to review any contracts you have received from PayPal (here is the contract of carriage for PayPal, make sure it applies to you). While there may be a forced arbitration clause, many times there is an exception for small claims lawsuits.Why is PayPal not refunding my money? ›
When your refund shows as "pending" it means the seller has issued the refund, but the money hasn't cleared their bank. It usually takes up to 5 business days for a refund to complete. If your refund is still pending after 5 business days, contact the seller for details.Why is PayPal holding my money friends and family? ›
Sometimes, we may place a payment on hold for 24 hours as a security precaution. This can happen for many reasons, such as you haven't sent money in a while or you're sending money to someone new. We just need to confirm it's you sending the money. You don't need to do anything.
If a payment you sent is pending or unclaimed, it means the recipient hasn't received or hasn't accepted the payment yet. The payment would be pending or unclaimed if it was sent to an email address or phone number that isn't registered to a verified PayPal account.What time does PayPal release funds? ›
If you sold a service or digital product:
Your funds could be released 7 days after your status is updated, depending on your sales activity. otherwise, they'll be released in up on to 21 days after the hold was placed.
Contact your bank immediately to let them know what's happened and ask if you can get a refund. Most banks should reimburse you if you've transferred money to someone because of a scam.Can someone steal your bank info through PayPal? ›
Unfortunately, it is all too easy for scammers to steal your money or financial information through PayPal.How do I request money from friends and family on PayPal? ›
- Launch your app. Then choose Request in your feed.
- Enter an amount. Choose a PayPal contact and enter the amount you need.
- Customize and go. Add an emoji, sticker, or friendly note. Then, choose Request Now.
Yes as long as the "refund" option is available to the receiver that option never gets away for 180 days so even after 179 days they can still refund.Does Zelle report to IRS 2023? ›
As of this writing, Zelle doesn't report your transactions to the IRS, according to its website. Threshold needed to report: You should receive a 1099-NEC form from a business if it paid you more than $600, and it is your responsibility to report payments to the IRS.What is the PayPal friends and Family limit? ›
Each transaction cannot exceed $10,000. For some creators, being sent money from brand partners that exceed this amount can lead to getting their account locked for investigation.Has anyone successfully sued PayPal? ›
This isn't the first time, Hirschhorn has taken on PayPal. In December of 2021, he successfully sued the company and was able to retrieve a $4400 unemployment payment that has been frozen in Sheena Small's PayPal account.Can a buyer force a refund on PayPal? ›
Customers on PayPal are able to request a refund up to 180 days after paying for a product via PayPal. This is accomplished by using their platform after the original transaction. Sellers agree when signing up for a PayPal account that they'll abide by the refund policy, and will refund dissatisfied customers.
PayPal decides who wins a dispute by reviewing the evidence provided by both parties and determining who has the stronger case. The decision is based on the transaction details, seller protection policy, and PayPal's user agreement. If the decision is in the buyer's favor, the funds will be returned to the buyer.How long does PayPal take to review a case? ›
We usually reach a decision within 14 days, but some cases can take 30 days or longer.What happens if you get scammed on PayPal friends and family? ›
If you got scammed on PayPal, you should report the interaction to PayPal. You can report this through the Resolution Center. Once you are in the resolution center, select Report a Problem. Choose the payment you need to report.Can PayPal keep your money forever? ›
If you have a balance in your PayPal account, you will need to withdraw the money within 180 days of your account being closed. You can do this by transferring the money to your bank account or requesting a check from PayPal.Why is PayPal holding my money for 21 days? ›
As you begin your selling journey, or start selling after a while, we hold the initial payments you receive for up to 21 days. This is a common industry practice to cover any potential buyer complaints that may happen in that time.How do I know when my PayPal is ready to receive money? ›
With PayPal, you receive money when someone pays to your email address or mobile number. Once that happens, we'll send you a message letting you know you have money available.How long does it take for funds to reach PayPal account? ›
How long does it take to add money from my bank account to my PayPal account? Adding money from your bank account to your PayPal account usually takes up to 5 business days.How long does PayPal take to receive money from a friend? ›
How fast are PayPal transfers? PayPal transfers using the PayPal balance or debit/credit card are almost instantaneous. If using a bank account, transfers can take about two to three days.What if I get scammed on PayPal friends and family? ›
If you got scammed on PayPal, you should report the interaction to PayPal. You can report this through the Resolution Center. Once you are in the resolution center, select Report a Problem. Choose the payment you need to report.Can you get a refund from PayPal friends and family reddit? ›
Yes as long as the "refund" option is available to the receiver that option never gets away for 180 days so even after 179 days they can still refund. The only time when refund isn't possible is when PayPal haven't made that option available.
My order never arrived
If your order never shows up and the seller can't provide proof of shipment or delivery, you'll get a full refund. It's that simple.
Contact your bank immediately to let them know what's happened and ask if you can get a refund. Most banks should reimburse you if you've transferred money to someone because of a scam. This type of scam is known as an 'authorised push payment'.How can you tell a PayPal scammer? ›
- Generic greetings. Phishing messages often begin with impersonal greetings. ...
- Attachments. Attachments can contain malware, so never open them unless you're 100% sure they're legitimate.
- A sense of urgency. ...
- Fake URL. ...
- Asks for sensitive info. ...
- Poorly written.
Common refund statuses
It usually takes up to 5 business days for a refund to complete. If your refund is still pending after 5 business days, contact the seller for details.
Common reasons for declines: Card account is closed. Card account is frozen due to fraud. Card account does not support refunds (e.g. some prepaid cards)
Advocate, Supreme Court of India, Dr Pavan Duggal, said that victims losing money to bank frauds can get 90% of their money back in just 10 days. Most banks have an insurance policy against unauthorized transactions. Bank customers have to report an unauthorized transaction within three days to get up to full refund.What happens if you get caught scamming money? ›
Can you go to jail for scamming online? Yes, you can go to jail for online scams. The federal government takes online fraud very seriously, and it has a number of laws that make online scamming punishable by jail time. The maximum sentence for wire fraud is 20 years in prison.What happens when a scammer finds out you are on to them? ›
Once a scammer has you “hooked” in an online relationship, they'll start asking you to send them money, gift cards, or expensive gifts. If you catch on, they'll delete their accounts and vanish.