MTFCA Forum

Hey fellow T people. I am trying to buy something for my 1916 Touring. I am offering his asking price but he will only accept "friends and family " payment. What are the advantages or disadvantages for me?
Campbell Tellman II
Beaufort, NC

No protection of payment. If you never receive the parts, no refund from PayPal via the seller. Usually such demand method means beware of seller. Unless you personally know the seller, as family member or friend in good standing.

DanTreace wrote: ↑

Wed Mar 27, 2024 3:31 pm

Usually such demand method means beware of seller.

I wouldn't go so far as to say that. Everything I've ever bought through PayPal from an on-line classified listing has been "friends & family", at the seller's request. I will say however, that the sellers are usually participants of the many forums I haunt and not just John Q. Public. That still doesn't mean that I know the seller however. The point is, it's an extremely common request, in my experience. That does not mean it's without risk however.

Buying on line is a two way street- if the person is a frequent Forum member you are most likely ok but if the person is totally unknown to you or its a lot of $$ it is a gamble. Does this person belong to any local t clubs or? Your caution is justified.

Just my two cents:

Two main reasons why a legitimate seller would request "friends and family" for PayPal payments:

There is no fee for the sender or the recipient of the money.

The transfer of money doesn't count toward the 1099-K reporting threshold.

If you really want the part, but don't want to use "friends & family", find out what the seller fee is for a regular, protected transaction and offer to add the fee to your payment. That way, you are paying the fee instead of the seller. If the seller still balks, that would really raise a red flag, IMO.

Good advice- the fee is like 4%, so its not that much more for a single transaction, but it does add up for sellers over time.

Campbell Tellman wrote: ↑

Wed Mar 27, 2024 3:27 pm

Hey fellow T people. I am trying to buy something for my 1916 Touring. I am offering his asking price but he will only accept "friends and family " payment. What are the advantages or disadvantages for me?
Campbell Tellman II
Beaufort, NC

Dan is correct - "Friends & Family" provides no protection. If its an old MTFCA enrolled member(not a few days old) shouldn't be a problem.
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The reason for the seller to use "Friends & Family" is so they don't get a service charge from PayPal. Also its not reported as a 1099K transaction for which taxes may be leved if the seller exceeds the threshold (Supposed to be $4,500 this year down from $20K)
Now, if the seller means well you could add a small amount to cover the fee (PayPal says- Send/Receive Money for Goods and Services 2.99%) If its funds from your PayPal account & not a Credit Card etc. Also there are fees for currency exchanges.
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Items sold on eBay pay an eBay commission (cost of item + shipping charge to the buyer) and not a PayPal fee now. So the 1099-K is eBay's responsibility. But eBay discounts the cost of shipping to the seller - Buyer pays the over the counter rate. So its not as bad as it could be.

I'm no financial advisor, but you might want to look at paying with PP as FF but using a credit card as your funding source. You pay a small fee to PP, but if the deal goes south, I have a feeling that you could dispute it with your credit card company.
But, like others have said, it's a leap of faith. You either trust the other person and it doesn't matter how you pay or you try to protect yourself and if he's not legit, he will find a way to get you anyway.

I have smoked out true scammers before with offering to have a local forum member (who does not exist) stop by and pick up the parts or at least inspect them. If he has no problem with that, he is probably lefit. If he always has an excsue not to be available, it's probably a scam.

Thanks to all for the input. I have suspicions about the seller.
Campbell Tellman II
1916 Ford Touring Car
Beaufort, NC

"Friends and Family" is NO benefit to you whatsoever. You cannot get your money back, there is no buyer's protection. I know people say they've never had a problem with F&F when buying, but all it takes is ONE time for you to use it and get scammed. If he uses PayPal, he can use Goods & Services. It protects you and him. If he gives you the reason "just because he prefers it", walk as fast as you can away from the deal.

I sell stuff & prefer PayPal to friends & family, because check transactions take more time & rick in the mail. And if I don't know the buyer another week for the check to clear. If someone wants to use PayPal "Goods & Services" I'll just add 3% (because my PayPal is not a Business) to the total and everybody is happy

I try to use PayPal friends and family when I buy or sell, if the seller is a known forum member, I use Friends and family. I have passed buying several items because seller only wants a check or money order. I’ve done both personal checks and money orders, but no longer !

I’ll pay with bill pay check out of my banking app, it’s also a hassle, so I personally prefer PayPal F&F option,
extremely quick, easy to use.

I’ve been buying on this forum for almost 7 years using PayPal F&F and have met some wonderful trustworthy folks.

signsup wrote: ↑

Wed Mar 27, 2024 6:15 pm

I'm no financial advisor, but you might want to look at paying with PP as FF but using a credit card as your funding source. You pay a small fee to PP, but if the deal goes south, I have a feeling that you could dispute it with your credit card company.
But, like others have said, it's a leap of faith. No Fees: Transfers between friends and family are typically free of fees, which can be cost-effective. The payment process can be fast and convenient, especially if you already have a PayPal account. I myself recently read about diners club international, found top online casino sites that accept diners club and this is the top. I really trust PayPal and it trusts me. The main thing is to identify these scammers and then everything will be ok. You either trust the other person and it doesn't matter how you pay or you try to protect yourself and if he's not legit, he will find a way to get you anyway.

I have smoked out true scammers before with offering to have a local forum member (who does not exist) stop by and pick up the parts or at least inspect them. If he has no problem with that, he is probably lefit. If he always has an excsue not to be available, it's probably a scam.

You are saying the right things.

Interesting observation on PP F and F...I purchase a specific item for all my military vehicles that a seller provides and I pay with PP F and F. But, I have purchased from him at least a dozen times and I keep waiting for PP to realize that this seller ain't got that many friends or family. They don't see to care as it saves PP from getting involved in any suller or buyer disputes. It's got to be cutting into PP's profits. Everybody is doing it.

Wonder if the OP paid for his items and/or if he received them.

If the seller is trying to avoid paying a fee, find out what the fee is and offer to pay for both the goods and the fee via the normal payment method. That way, he gets the full payment he wants and you'll be protected if the deal goes south. If he balks, skip the deal.