friends & family-sender reports it as unauthorized transaction

[backpackmidwife]

I received money via friends & family, and now the sender has opened a case against me for "buyer reported unauthorized transaction," so the money is on hold in my account until I respond.  My only available online responses to handle the case are the options a) I already fulfilled the order; b) I already gave a refund; c) I'll close this case with a refund.  None of which apply, obviously, as this was cash, not goods and services.  I'm not a seller and this is not a buyer.  Just money owed.  

1) This was not a sales and goods transaction, simply sending money.  How is it possible that a case could be opened against me by the "buyer" who didn't purchase anything from me?

2) What recourse do I have or how can I expect paypal to help me?  I haven't been able to find anything on the paypal site about what to do in situations like this - just information about disputes with goods and services transactions

3) How can I feel secure receiving money through friends & family in the future if this can happen?  Yes, I know it is called friends and family, but not all friend and family relationships are optimal and happy.  

[kernowlass]

@backpackmidwife

If someone pays you via family / friends then they can't open a paypal dispute for non receipt OR SNAD.

However they can still open an unauthorised transaction or a chargeback. This is because an unauthorised transaction is someone saying their paypal account was hacked and used without their consent. If paypal investigates and thinks that that is true then of course the account holder has to have his money back.

However you would be covered and reimbursed if you met all the criteria of seller protection. HOWEVER unfortunately f/f payments are not covered by seller protection as they are not sent for purchase of goods.

If a member of your family or a friend does this to you then you need to sort it out with them direct as paypal does not get involved in relationship issues only sales issues.

[Whac-A-Mole]

Paypal is not suitable for certain transactions,if this is a domestic debit,ask them to send you a check or money order,offer to pay postage 49cents.