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Check This PayPal Setting to Avoid Fees on Personal Payments

Consumer reporters in Germany warn that PayPal saves the 'Goods & Services' choice by default, leading to recurring charges on private transfers.

Overview

  • Selecting the 'Goods & Services' option instead of 'Friends & Family' applies PayPal fees of 2.49% plus a €0.35 fixed charge to the recipient.
  • The 'Goods & Services' path is marketed with buyer protection, which causes PayPal to treat the recipient as a seller even in private transfers.
  • PayPal retains the last-used purpose of payment, so one mistaken selection can carry over to future payments and stored contacts.
  • Example calculations show the impact, with a €100 send resulting in about €97.16 received, and repeated small transfers compounding losses.
  • Users can attempt to cancel if they chose the wrong option, but reversal after funds are received is cumbersome, so checks before sending are advised.