Highlights
- PayPal Goods and Services offers purchase protection for buyers at no extra cost.
- Buyers are eligible for refunds if items don't match descriptions or don't arrive.
- Sellers are protected from claims and chargebacks if they meet PayPal's requirements.
- PayPal charges a 2.99% fee for Goods and Services transactions.
- International sellers may face additional currency conversion fees.
PayPal is widely recognized for making sending money between friends and family easy. But another transaction option is gaining traction: "Goods and Services."
When you're buying something from a marketplace, hiring a business for services, or shopping online, security is key. This is where the PayPal Goods and Services payment method steps in. It offers purchase protection, ensuring you're not scammed during your transactions.
In this guide, we’ll explore how PayPal's Goods and Services work, its key features, fees, and how to use it safely.
What Is PayPal Goods and Services?
PayPal Goods and Services is one of two payment methods available on the site, the other being Friends and Family payments. When you use Goods and Services to make a purchase, PayPal provides purchase protection at no extra cost.
If you don't receive what you paid for or if the items do not match the description, you can dispute the transaction.
How Do PayPal Goods And Services Work For Buyers and Sellers?
For Buyers:
When you shop online and choose PayPal at checkout, the payment is automatically processed as a Goods and Services transaction. This means you’re eligible for a refund if the item you receive doesn’t match your order or if it doesn’t arrive.
A seller can also decide whether to cover or pass on the transaction fee. With this option, you can benefit from PayPal's purchase protection.
For Sellers:
Sellers can receive payments for items or services sold through PayPal using a personal account. Funds can then be transferred to a Cash Account or linked bank account, debit, or credit card. PayPal also provides sellers protection against claims, chargebacks, or transaction reversals due to unauthorized purchases or items not received, as long as they meet PayPal’s requirements.
If you sell frequently, upgrading to a PayPal business account may be beneficial. You can switch your personal accounts to business accounts, offering a trial period to decide which option suits your needs best.
What is the PayPal Goods and Services Fee?
When you send or receive money for goods and services through PayPal, a fee of 2.99% (+ no fixed fee) is applied to the payment.
PayPal Goods and Services Fee for International Sellers
PayPal treats any sale of 'Goods and Services' as a commercial transaction, charging a fee of 2.99%, plus a currency conversion spread based on the currency. This fee for goods and services PayPal can add up for international sellers, but there are alternatives to help you save.
Goods and Services PayPal Fee for Domestic Sellers
As a domestic seller, PayPal treats Goods and Services payments as commercial transactions and applies fees. These fees may vary based on how the payment is processed:
- Online Payments = 2.59% + fixed fee (currency-based)
- In-Store Payments = 2.7% + fixed fee (currency-based)
To estimate the exact amount, you can also use the PayPal goods and services fee calculator.
How Does PayPal Goods and Services Work?
PayPal Goods and Services is used by both buyers and sellers, with a simple process for each.
For Buyers
When purchasing goods or services, PayPal transfers money from your account to a seller. To make a payment:
- Log in to PayPal online or via the app.
- Select "Send and Request" and choose "Send."
- Enter the seller's details (email, username, or phone number).
- Enter the payment amount and currency.
- Select your payment method (PayPal balance or saved payment option).
- Click "Send payment now."
For Sellers
- Requesting payment is straightforward:
- Log in to PayPal.
- Select "Send and Request" and choose "Request."
- Enter the buyer's details (email, username, or phone number).
- Enter the amount.
- Click "Send."
Summary
PayPal Goods and Services is a convenient option for paying online merchants or accepting customer payments. Buyers don’t pay fees, and the seller fees are fair. As a trusted name in online payments, PayPal offers strong security, making it a reliable choice for digital transactions. If you're exploring online payments, PayPal is a great option.
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FAQ
How To Use PayPal Goods And Services?
To use PayPal Goods and Services, log in to your account, click “Send & Request,” and select “Pay for goods or services.” Enter the receiver's email or phone number and the payment amount, then confirm your payment.
