Accepting deposit and rent payment via PayPal?

[Steve S.]

Anyone in here receive payments from their tenants this way?

As I understand it, if they send it via the "friends and family" link (as in NOT "goods and services"), it's free  

Is there a reason my tenants can't pay that way for free via the "friends and family" link on PayPal?  Is that somehow illegal?

[Steve S.]

Doing a little more research, it appears PayPal explicitly suggests paying rent for free is entirely acceptable. 

Here's the link:

https://www.paypal.com/us/selfhelp/article/payment...

It states if you use your bank account, there's no fee.  Here's some verbiage from their site:

You're making a purchase if you're paying for:

• Services: to pay for a service someone provides, like a mechanic.
• Goods: to pay for goods other than ones you purchase on eBay.

There is no fee to send money for a purchase.

Friends and Family

You're making a personal payment if you're sending money for :

• A gift: to send money as a gift, like for a birthday.
• Payment owed: to pay your friend back for your share of a dinner bill, or for another item that your friend bought for you.
• Cash advance: payment not involving the purchase of goods or services. Your credit card provider may charge fees for a cash advance.
• Living expense: to pay for things like rent or utilities.
• Other: other payments that aren't a purchase of goods or services.

If you use your bank account or PayPal balance, there is no fee to send money for a personal payment within the U.S. If you use your debit or credit card, there is a small fee, but you decide whether you or your recipient pays. If you send money outside of the U.S. additional fees may apply.

If you have a balance in your PayPal account, we always use that first. If you don't have a balance, we automatically use your bank unless you change the payment method. You can change your backup payment method at check out. Note: You can't add Payoneer accounts to your PayPal account as a payment method.

We'll send the recipient an email to let them know that you sent them money. If they don't have a PayPal account, we explain how to sign up for one.

It does mention Venmo as a payment processor owned by PayPal that allows "social commentary" to be made and is popular with millennials.

What's odd is it took my renter's payment about 4 business days to process but he said he had both a credit card and a bank account linked.  I guess I'll have to call pay pal to find out what's up.