How to Avoid Paypal Fees: Especially With “Friends and Family”

By John Cruz

Use “friends and family,” they said.

You do exactly that, and then, bam!

You’re hit with a nice little Paypal fee.

Paypal fees are annoying, and although I believe every business should try to make the most money, the tactics they use are unnecessary.

It’s tricky, a bit scammy, and is definitely not helping people like you and me.

The sad part is that it wasn’t always that way.

As consumers, it’s not in our favor, so I want to help you avoid these stinking PayPal fees.

We accomplish such a thing in several ways, and it has helped save us hundreds of dollars.

Share it with friends and family (literally), as I’m sure you like the idea of saving more money.

How to Avoid Paypal Fees: Especially With "Friends and Family" 3

How to Avoid PayPal Fees

If you want to avoid Paypal fees, it’s going to take a little effort on your part.

It will also take some thinking and a bit of planning.

It’s not complicated and doesn’t cost any money, but a little effort will help you avoid those irritating PayPal fees.

Whether you want to save more money each month or not, these tips will save you from throwing money away.

And here’s how it’s done.

1. Know and Understand PayPal Fees

How can you avoid PayPal fees if you don’t know anything about them?

Without understanding what you’re being charged for, how in the world do you expect to know?

PayPal is a service and services, and obviously, they’re not doing it for free.

However, there is a way that you can avoid contributing to their business but still utilize their service.

But you at least need to read about PayPal’s fees before you go complaining.

2. Pay With Cash

This is the absolute best way to avoid PayPal fees.

PayPal may be convenient, and sometimes those fees seem small, but it adds up.

Big time.

So, if you do not use digital payments often, you can either get with the times or stick with traditional payments and use cash.

There’s nothing wrong with it.

And it can also help you decide if you should get a credit card or continue using what you have available.

3. Link a Bank Account to PayPal

If you want to avoid PayPal fees, you need to link a bank account to PayPal.

Remember how everyone and their mothers tell you to use “friends and family,” and it still doesn’t work?

That’s because you need a linked bank account.

Most casual PayPal users don’t link their accounts, and those are the ones who get hit with the fee.

How PayPal tricks us is what I can’t stand.

The sender uses “friends and family,” and they don’t see any fees.

Then, the receiver gets the money, and that’s who gets hit with the fee.

Unless you like throwing money away, don’t use PayPal to transfer funds unless you absolutely have to or you have a linked bank account.

4. Change Payment Frequency

If you run a business and you are paying or getting paid regularly, you can avoid PayPal fees by minimizing things.

If you get paid every week or biweekly, switch it to a monthly payment to avoid the $.30 fee.

Making one payment a month helps you avoid paying PayPal fees and also helps you focus on other things.

5. Claim PayPal Fees on Your Taxes

This isn’t necessarily a way to avoid PayPal fees, but it will definitely help you compensate for that loss.

If you make money blogging or run an online business that utilizes PayPal, you can definitely claim these PayPal fees come tax time.

Along with everything you use to build your websites, your internet bill, and even the gas you normally use anyway.

There are loopholes that can help you save more money, so use them and invest that hard-earned money instead.

6. Get a PayPal Debit Card

If you want to avoid PayPal fees, consider getting a PayPal debit card.

It saves you from having to transfer money to your bank or debit/credit card, as you can make purchases or send money like you would with a regular credit card.

Sometimes getting a credit card is not the best thing to do, and that’s why the PayPal debit card is better.

Cashback is great and typically only comes with a credit card, but you get cash back with a PayPal debit card as well.

So you get money in your pocket, and you also avoid PayPal fees in the process.

Understand Paying With “Friends and Family”

When picking the friends and family option with PayPal, you can’t help but feel comfortable that you aren’t going to be hit with a fee.

Paying with the “friends and family” option is great, but you must understand that it won’t always work.

You can pick the option, send the money, and you don’t see any fees.

The problem is that the person receiving the money will be the one that has to pay the fee.

I got sent $500 the other day, and I only received $445 out of it.

There was nothing I could do, so of course, I accepted it with $15 less.

Not cool.

Conclusion – Avoid PayPal Fees When Possible

If you are running a business, dealing with PayPal fees is the norm.

However, if you’re sending and receiving money for lunch or a round of golf, don’t do it unless you absolutely, positively know you don’t have to pay anything.

When it’s a few bucks, most will go through with the payment, but if it’s over $10, they won’t.

Imagine if you accepted those small fees over the course of a year.

It will add up, and you will end up paying more than you think.

Avoid paying any PayPal fees if you can, and you can literally use that to pay your water bill.

Think long-term, and you will see that these PayPal fees are a big pain in the butt and, yes, they can be avoided.

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