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Bye-Bye PayPal Friends And Family Payments To Business Accounts!

PayPal Logo

Today, June 30, PayPal sent me three emails. The first wants me to check the May activity for my company’s business account. The second wants me to “take my business online with a PayPal partner.” And the third wants me to “view updates” to my PayPal account.

The view updates email contained a mixture of good and ungood news. First, it seems that PapPal is raising its commission rate from 2.89% to 2.99%. They’re also eliminating the fixed per transaction fee of $0.49. Seems the fee structure is simplified, and that PayPal will make a little more on larger transactions.

The second change is that, effective July 28, 2022, PayPal will remove the Friends and Family option for business payments. Ouch! 🙂

The Change Bites In Both Directions!

Frequently I have been using Paypal Friends and Family to pay solo and very small Low End businesses where I am a customer. I like that my friends can receive the entire amount that I send.

Happily, several of my customers at MetalVPS.com have done the same for me. So the removal of Friends and Family from business accounts hurts relationships between small business people who are friends, regardless of whether they are paying or receiving payment.

The good side might be that the ability to dispute a purchase reappears along with the demise of Friends and Family. But, if I thought there were a significant chance of a dispute, I wouldn’t want to be either a buyer or a seller. I’d think it very much better to stay away from the transaction entirely.

Here are some snippets from Paypal’s email and from their news release:

Email From Paypal

Effective July 28, 2022, PayPal will remove the Friends and Family option for domestic payments to U.S. business accounts, and all received payments will be subject to the seller fee. This will ensure all eligible purchases are covered by PayPal’s comprehensive Purchase Protection, guarding buyers and sellers if something goes wrong with a purchase. You can create a personal account to receive personal payments without seller fees while continuing to use your business account to receive commercial payments and use business only features.

Paypal Website News Release

Transition of Friends and Family Payments for Business Accounts

PayPal is also evolving the ways customers send money to Friends & Family and make payments for Goods & Services. In the coming weeks, U.S. customers will now only be able to send Friends and Family peer-to-peer payments to consumer PayPal accounts.

This update helps ensure that eligible purchases of Goods and Services will be protected for both parties and will drive consistency on our platform, while also removing confusion around which payments are eligible for buyer and seller protections. This will also enable PayPal to help businesses properly reconcile data-keeping and organize personal and business income. Business account holders can continue to access business-only features like automated reporting, invoicing, multi-employee access, and more. Business account holders who currently use PayPal to receive non-business-related payments can use or create a personal account to receive personal payments without seller fees, while using their business account to receive commercial payments.



  1. Gday

    Paypal is another ANTI WHITE company
    an inside memo was leaked
    where they where outright anti white

    Also Paypal has screwed over a lot of small business and independent contractors
    along with small dropshippers

    I recommend avoid Paypal
    instead go with Local/national companies that are e-merchants

    Im seeing more interest for payment via
    Physical Cash , Silver+Gold and going back to Money Orders
    due to all the censorship and deplatforming

    Cypto seems to be crashing . I never trusted it from the first place


    July 1, 2022 @ 6:25 pm | Reply
    • angstrom:

      PayPal is an “anti white company”? What a pile of nonsense. Take your racism elsewhere

      July 3, 2022 @ 3:29 pm | Reply
  2. Peter Mullins:

    LEB please check what happens with Virmach that was one of the top 3 of your ranking providers, offline services for weeks and no answer tickets.

    July 2, 2022 @ 11:26 am | Reply
    • You should ask this question on LowEndTalk. We have no direct communication with VirMach.

      July 2, 2022 @ 2:17 pm | Reply
  3. Rob:

    The only thing that PayPal is good for anymore are Ebay transactions because of buyer protections. As far as anything else they have rendered themselves useless.

    No joke here as a business that used a business account we are already jacked for about 2.7% of the transaction so they make PLENTY of money on larger transactions that can total a few thousand dollars. Out of the blue they tell us that hey even without a single issue ever on your account the four grand you just deposited will be held for 30 days and we will only release about 900 of it because you just haven’t used your account enough lately. Seriously?

    And now it’s even useless for sending small amounts of cash to family. For most things I used to use PayPal for I switched to CashApp when it is a person to person transaction. All they are doing is losing business because there are too many alternatives now. Even my bank offers Zelle payments which is just like a PP money transfer.

    July 4, 2022 @ 12:42 pm | Reply

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