Why Can't I Pay Contractors as Friends & Family on PayPal?

PayPal Friends and Family transfers aren't meant for goods and services.

Written by Anja Simic
September 29, 2021

Why Can't I Pay Contractors as Friends & Family on PayPal?

PayPal Friends and Family transfers aren't meant for goods and services.

Written by Anja Simic
September 29, 2021

Why Can't I Pay Contractors as Friends & Family on PayPal?

PayPal Friends and Family transfers aren't meant for goods and services.

Why Can't I Pay Contractors as Friends & Family on PayPal?

PayPal Friends and Family transfers aren't meant for goods and services.

We were asked why sending PayPal personal payments is not possible through Deel, so we wanted to give you a detailed explanation.

What is a PayPal Personal Transaction

As it's stated in PayPal's Terms and Conditions page, a “Personal Transaction” payment involves sending money (initiated from the “Friends and Family” tab of the “Send Money” flow) to, and receiving money into your PayPal Account from, friends and family without making an underlying commercial transaction (that is, the payment is not for the purchase of goods or services or for making any other commercial transaction).

What is a PayPal Commercial transaction

A "Commercial Transaction" payment involves buying and selling goods and services, making any other commercial transaction or receiving payments when you “request money” using PayPal.

The risks of making a personal transaction on PayPal

Paypal closely monitors all flows of money, and if regular business abuses the functionality or any part of its Terms and Conditions it can, unfortunately, end with an account block or restriction.

Moreover, if you are sending a personal transaction to a contractor outside of the contract, you may increase compliance risks.

For more information, check PayPal's Terms & Conditions page.

Pay your team effortlessly with mass payments

Pay your global team in one click, with mass payments. We support payroll in over 150 currencies with flexible payment methods.

Learn more

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We were asked why sending PayPal personal payments is not possible through Deel, so we wanted to give you a detailed explanation.

What is a PayPal Personal Transaction

As it's stated in PayPal's Terms and Conditions page, a “Personal Transaction” payment involves sending money (initiated from the “Friends and Family” tab of the “Send Money” flow) to, and receiving money into your PayPal Account from, friends and family without making an underlying commercial transaction (that is, the payment is not for the purchase of goods or services or for making any other commercial transaction).

What is a PayPal Commercial transaction

A "Commercial Transaction" payment involves buying and selling goods and services, making any other commercial transaction or receiving payments when you “request money” using PayPal.

The risks of making a personal transaction on PayPal

Paypal closely monitors all flows of money, and if regular business abuses the functionality or any part of its Terms and Conditions it can, unfortunately, end with an account block or restriction.

Moreover, if you are sending a personal transaction to a contractor outside of the contract, you may increase compliance risks.

For more information, check PayPal's Terms & Conditions page.

Pay your team effortlessly with mass payments

Pay your global team in one click, with mass payments. We support payroll in over 150 currencies with flexible payment methods.

Learn more