PayPal connects a payment to a funding source, a recipient, and a set of rules. Before sending money, check all three. A familiar checkout button does not make every payment eligible for a refund or every message about your account authentic.
This guide covers U.S. accounts and terms checked September 6, 2026. Other countries have different agreements and fees; use the terms for your account's country.
Start with the reason for the payment
Use the appropriate purchase payment type when buying an item or service. Friends-and-family payments are personal transfers and are excluded from Purchase Protection. A seller asking you to label a purchase as a personal transfer is asking you to change an important protection condition. PayPal explains personal and goods-and-services payments.
Invented example: you agree to buy a used camera for $80 from someone you have never met. A request to send “money to a friend” does not become appropriate because you exchanged friendly messages. Check the actual payment type, the item description, delivery arrangements, and eligibility before proceeding. Even a correctly classified purchase is not a guaranteed refund.
Know which account will fund it
Available methods can include a bank account, card, or PayPal balance. Check the method for this transaction, not just your usual preference. Automatic payments have their own merchant-specific settings. PayPal may also use a backup method if the selected source cannot fund the payment; that backup may not always be displayed before completion. Read PayPal's funding-method explanation.
Keep a record of the recipient, amount, currency, payment type, and transaction ID. Review a recurring agreement separately: its funding setting, next charge, and the merchant's cancellation terms. Stopping an automatic payment arrangement is not necessarily the same as ending the underlying service contract.
Check the total in the currency you will pay
A payment's cost depends on its type, funding method, countries, currency conversion, and any withdrawal service. A currency-conversion charge can be built into the exchange rate rather than shown as a separate line. Standard and instant withdrawals also have different conditions. Use the current U.S. consumer fee schedule and the transaction's displayed terms.
- Buying: check the final amount and currency, including any conversion choice presented.
- Sending personally: check funding and international-transfer charges before confirmation.
- Withdrawing: compare the arrival estimate and fee for the specific destination.
- Selling: use the separate merchant terms; a consumer fee page does not describe all business costs.
Do not compare exchange rates without comparing the final amount for the same purchase. An apparently favorable rate can coexist with another charge. Save the completed transaction details so that a later refund or statement entry can be matched to the original payment.
Separate a purchase dispute from an unauthorized payment
Purchase Protection concerns eligible purchases that were not received or were significantly not as described. Exclusions and evidence requirements apply, and return shipping is not covered. Under the U.S. Purchase Protection terms, the opening deadlines differ:
Scroll sideways to read all columns. Keyboard users can focus the table and use the arrow keys.
| Issue or step | Deadline | Practical action |
|---|---|---|
| Item not received | Open within 180 days of payment. | Keep the order and delivery records. |
| Significantly not as described | Open within 30 days of delivery or fulfillment, or 180 days of payment, whichever is sooner. | Record the problem promptly. |
| Unresolved dispute | Escalate to a claim within 20 days of opening, or it closes automatically. | Follow the case's instructions and dates. |
A dispute opens the resolution process; a claim asks PayPal to decide it. PayPal may require at least seven days from the transaction before escalation. Check the linked policy and your case rather than treating the longest deadline as a reason to wait.
If you did not authorize the payment, use the unauthorized-activity route promptly. First check whether the entry is a recognized subscription or a purchase by someone with account access. PayPal's unauthorized transaction instructions explain how to report it through the Resolution Center. The purchase-dispute table above is not a deadline guide for unauthorized activity.
Work from the account record, not the email
A payment is declined
Look for the actual status before trying again. An issuer decline, outdated card details, an account limitation, or a verification requirement needs a different response. PayPal says issuers do not disclose the reason for every decline to it; contacting the issuer may be necessary. Follow the declined-payment checks and avoid repeatedly submitting a purchase whose status is uncertain.
Money received is on hold
A hold can reflect selling history, unusual activity, disputes, or account verification. It does not by itself prove that the buyer failed to pay. Open the transaction in your authenticated account and follow its release options. PayPal's hold explanation describes common reasons; there is no single release date for every situation.
An invoice or warning looks urgent
Open the app or enter the known website address yourself. An invoice can contain a scammer's phone number even when the invoice system is real. Do not call a number embedded in an unfamiliar invoice or send money to “release” a payment. PayPal's scam examples cover these tactics. Check whether the underlying transaction exists and report suspicious requests through the account.
For a business receiving payments, the payment-processing guide explains why a successful checkout, an available balance, and a bank deposit can be different events. For household planning, include subscriptions and transfer costs in your budget review.