PayPal Goods & Services funds refer to payments sent with Buyer’s Protection, which ensures security for the sender. These funds are often referred to as “PayPal Goods and Friends” funds when sent with this protection. However, there’s a key detail to note: the recipient will not receive the full amount sent.

How PayPal Goods & Services Funds Work

When a sender uses the Goods & Services option, the recipient receives about 5% less than the original amount sent.
The sender does not pay any additional fees, as the deduction is taken from the recipient’s received amount.

Example:

If Mr. ChinaitechPay sends 95 in her PayPal account.

Key Points to Remember

1. Chargeback Risk:

Goods & Services funds can be charged back by the sender, as this option includes Buyer’s Protection.

2. Preventing Chargebacks:

Chargebacks can be 100% prevented by following specific steps, such as providing clear proof of delivery or service and maintaining proper documentation.

Why Use PayPal Goods & Services?

Buyer’s Protection: Offers security for the sender in case of disputes.
No Sending Fees: The sender incurs no additional costs, as the fee is deducted from the recipient’s amount.

Conclusion

PayPal Goods & Services funds are a secure way to send payments, but recipients should be aware of the 5% deduction and the potential for chargebacks. By understanding how this system works and taking preventive measures, both senders and recipients can ensure smooth and secure transactions.