When a client or buyer sends a payment using the Goods & Services option, it’s typically because they want protection in case the service or item is not delivered as expected. But this added protection comes with a fee—the recipient won’t receive the full amount.
How It Works:
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The sender pays the full amount (e.g., $100).
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PayPal deducts approximately 5% in fees.
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The recipient receives around $95.
The sender pays no extra charge—the fee is taken from the recipient.
Example:
If a client sends you $100 using Goods & Services, you’ll receive around $95 in your PayPal account. That’s a $5 deduction in fees.
Key Points to Remember
1. Chargeback Risk
Goods & Services payments are eligible for chargebacks. That means the sender can open a dispute or claim to get their money back.
2. Preventing Chargebacks
To reduce or eliminate chargeback risks:
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Provide clear documentation (screenshots, messages, delivery proof).
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Utilize platforms that automatically generate proof of delivery.
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Avoid taking payment for non-verifiable services using this method.
Why Clients Use Goods & Services
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Buyer’s Protection – If the service isn’t delivered or not as described, they can open a dispute.
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No Sending Fee – The sender doesn’t pay extra; the platform takes it from the receiver.
Should You Accept Goods & Services?
Yes, but cautiously. If you’re offering verifiable services and can prove delivery, it’s usually safe. However, if you prefer non-refundable payments, consider alternatives like:
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Friends & Family (not recommended for business, but no fees)
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USDT or Crypto (instant and irreversible)
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Local withdrawals via c-Exchange
Conclusion
PayPal Goods & Services payments offer security to the sender but come with:
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A 5% deduction from your received amount
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A risk of chargebacks
Always be aware of these details and take preventive steps to protect your business.
For more tips on receiving PayPal payments safely or converting PayPal to cash in Ghana, visit the c-Exchange Blog or start your exchange today.
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