Why is PayPal charging me a fee to send money to a friend?

Understanding PayPal Fees: Why You May Be Charged for Sending Money to a Friend

PayPal’s Friends and Family feature is designed to facilitate free domestic transfers between personal accounts. However, certain scenarios can result in unexpected fees being charged. Here are the key reasons why you may be encountering these charges:

International Transfers:
If you attempt to send money to a friend located outside your country, PayPal will typically assess a fee. These fees vary based on the recipient’s location and the amount being transferred.

Using a Linked Bank Account or Card:
When you transfer money from your PayPal balance to a friend, no fees are typically incurred. However, if you choose to fund the transfer using a linked bank account or credit/debit card, PayPal may charge a processing fee. This fee covers the costs associated with handling the external payment source.

Transaction Limits:
PayPal sets certain limits on the amount of money that can be transferred fee-free using the Friends and Family option. If you exceed these limits, you may be charged a fee for the excess amount.

Receiver’s Business Account:
If the recipient of the funds has a PayPal business account, PayPal may interpret the transaction as a commercial transaction and charge a fee accordingly. Even if the sender uses the Friends and Family option, the receiver’s account type may determine whether a fee is applied.

Other Factors:
In certain cases, PayPal may apply fees due to security reasons or potential fraud concerns. If you encounter unexpected fees, it is advisable to review the transaction details for a clear explanation of the charges.

How to Avoid Fees:

To prevent being charged fees when sending money to a friend, consider the following tips:

• Ensure that you are transferring funds within your own country.
• Send money from your PayPal balance instead of a linked bank account or card.
• Stay within the transaction limits set by PayPal for free transfers.
• Verify that the recipient has a personal PayPal account.

By understanding these factors, you can minimize the likelihood of encountering fees when using PayPal’s Friends and Family option. If you continue to experience unexpected charges, it is recommended to contact PayPal’s customer support for clarification.