Using PayPal friends and family for business

[shinwari]

Hello. I have business partners with whom I deal hand to hand and in person, we pay each others with PayPal, they're my friends and we don't need to provide each others with tracking numbers, is this violating the paypal terms and conditions? And what's the solution for this please? Because we don't need any protection from paypal on these kind of transactions. But the problem is that paypal limited my account and I can't send or withdraw money because they say I'm sending too much friends and family money. Any response will be appreciated. Thanks

[kernowlass]

@shinwari

Select the friends / family option when you pay instead of the goods / services?

[shinwari]

Yes but paypal limited my account for sending too many friends and family money. And now they're inquiring about the transactions

[kernowlass]

@shinwari

Some sellers especially ones that sell virtual / digital items use the family /friends option to evade fees and negate a buyers Paypal buyer protection.

If paypal suspects you are evading paying your paypal fees and 'selling' using the friends /family option then unless you provide proof the transactions were NOT for sales you may get a permanent limitation.

[shinwari]

Thanks for the reply, you can provide proof of payment for goods but how do you provide proof of friends and family money?

[kernowlass]

Paypal can see your transactions and if they see that you are using friends/ family payments for sales you will be limited as many have found out too late and come on here to say that they can't use paypal anymore.

[NathanFace]

I just had my account limited also. Apparently it was for receiving too many friends and family transactions. I guess you can’t collect money for a friend’s baby shower without stupid PayPal fees

[kernowlass]

@NathanFace 

Why didn't you use or set up a ''money pool'' instead of the friends/family option?