How to Use PayPal Goods and Services: Step-by-Step

PayPal Goods and Services is the payment type you select when sending money for a purchase — as opposed to Friends and Family (F&F), which is for personal transfers with no fee and no buyer protection. When you pay via G&S, PayPal Purchase Protection may cover you if the seller does not deliver the item or if the item is significantly not as described. Sellers bear the cost of the G&S transaction fee — PayPal typically charges sellers a percentage of the transaction plus a fixed fee for receiving G&S payments. Buyers generally do not pay a fee to send G&S payments using a PayPal balance or linked bank account, though credit or debit card funding may incur additional costs depending on your account type. For context on how digital payment protections compare, our guide on buy now pay later explains how BNPL buyer protections differ from PayPal G&S.

To send a G&S payment, log in to your PayPal account and click "Send & Request" or tap "Send" on the mobile app. Enter the recipient's email address or phone number linked to their PayPal account, then enter the amount. On the next screen, you will be prompted to choose between "Sending to a friend" (Friends and Family) or "Paying for an item or service" (Goods and Services) — select Goods and Services for any purchase from a seller you do not personally know. Review the payment details, add a note describing what you are purchasing, and confirm the payment. Always retain the transaction ID and any communication with the seller in case you need to file a dispute. Understanding how long PayPal holds money can help you plan for when funds are available after a G&S payment.

As of 2026, PayPal typically charges sellers a standard fee for receiving G&S payments — the fee structure may vary by account type, currency, and whether the payment is domestic or international. For most standard U.S. commercial transactions, the seller fee has historically been around 3.49% plus $0.49 per transaction, though PayPal updates its fee schedule periodically. Buyers sending G&S payments funded from their PayPal balance or a linked bank account typically pay no additional fee, though sending via credit card may involve a credit card processing surcharge depending on PayPal's current terms. Always check PayPal's current fee page before completing a significant transaction. If you are considering canceling a PayPal payment, our guide on how to cancel a PayPal payment walks through the timing and eligibility rules.

PayPal Purchase Protection may cover you as a buyer if your eligible G&S transaction meets one of two qualifying conditions: the item was not received, or the item received was significantly not as described. "Significantly not as described" covers situations such as receiving a completely different item, an item that is damaged or defective, or an item missing major components. Coverage applies to most physical goods and many digital goods purchased through G&S — certain categories, including real estate, motor vehicles, and custom-made items, may be excluded. The CFPB recommends reviewing the full terms of any payment protection program before relying on it for a high-value purchase. Our guide on marketplace payments covers how buyer protection works across different selling platforms.

If a G&S transaction does not go as expected, you have up to 180 days from the date of payment to file a dispute through PayPal's Resolution Center. Log in to your PayPal account and navigate to the Resolution Center — you can access it through the Help menu. Select the transaction in question and choose "I didn't receive my item" or "I received an item that's significantly not as described." PayPal will open a communication channel between you and the seller to attempt resolution. If the seller does not respond or the dispute cannot be resolved, you may escalate it to a PayPal claim, at which point PayPal will review the evidence and decide the outcome. If you need to update your PayPal account information while handling a dispute, our guide on how to change your PayPal username walks through account management steps.

PayPal Friends and Family is designed for sending money to people you personally know and trust — splitting a dinner bill, paying back a family member, or gifting money to a friend — not for purchases from strangers or casual acquaintances. F&F payments carry no buyer protection, and PayPal treats them as personal transfers rather than commercial transactions. If a seller asks you to pay via Friends and Family for what is clearly a product purchase, consider this a significant red flag — it may be an attempt to eliminate your ability to dispute the transaction if problems arise. The FTC recommends using payment methods that offer buyer protection for any online purchase from an unfamiliar seller. For peer-to-peer transfers where buyer protection is not needed, our guide on how to cancel a Zelle payment covers another common personal transfer tool.

If you are a seller receiving G&S payments, you are subject to PayPal's Seller Protection policy, which may cover you against unauthorized transaction claims and "item not received" claims if you meet eligibility requirements. Seller Protection generally requires that you ship to the address on the PayPal transaction, use trackable shipping, and respond promptly to any disputes. The G&S transaction fee you pay is the cost of this protected transaction environment — it is generally not appropriate to ask buyers to use Friends and Family to help you avoid fees, as this removes their protections. Always retain shipping confirmation and tracking information for any physical goods sold through PayPal G&S. If you are selling through a marketplace, see our guide on marketplace payment options for a broader view of seller tools and protections.