PayPal Friends & Family "Goods" Scam on eBay
On eBay, a seller (or buyer) steers the deal off eBay's managed checkout into a PayPal Friends & Family payment, stripping away both eBay's Money Back Guarantee and PayPal's Purchase Protection at once.
Part of: PayPal Friends & Family "Goods" Scam
Last reviewed: 24 July 2026
eBay now processes payments through its own managed checkout, and a genuine purchase there is backed by the eBay Money Back Guarantee. That built-in safety net is exactly what this scam is designed to remove. A seller messages you to complete the deal a different way — "pay me directly by PayPal Friends & Family and I'll knock off the eBay fees" — or a fake "Second Chance Offer" lands in your inbox after you lose an auction. The moment you pay outside eBay checkout as a gift, you have no recourse on either platform. The distinction that matters most: a real eBay sale happens inside eBay's checkout, and any push to leave it is the scam, not a favour.
How this scam works on eBay
A listing looks normal, but after you buy or bid the seller uses eBay Messages to redirect the payment. Common pitches: "cancel the eBay order and I'll do it cheaper by PayPal Friends & Family to save the seller fees," a claim their eBay payout is "on hold" so they need a direct transfer, or an offer to end the auction early for an off-platform deal. A frequent variant is a fake "eBay Second Chance Offer" email sent to losing bidders, spoofing eBay's look and directing payment to a PayPal address as Friends & Family.\n\nItems are usually high-value and shippable — sneakers, graded trading cards, watches, GPUs, phones, event tickets. Once you send the gift payment, the seller ships nothing, ships an empty box, or sends a counterfeit, and because the money left eBay's system entirely, the Money Back Guarantee no longer applies and PayPal treats it as a gift with no claim. The reverse con targets honest sellers lured off eBay by a "buyer."
Common red flags
- A seller who messages you to cancel the eBay order and pay directly by PayPal Friends & Family instead
- Any offer to complete the sale outside eBay checkout 'to avoid eBay or seller fees'
- A 'Second Chance Offer' email arriving after you lost an auction, directing payment to a PayPal address
- Claims that eBay is 'holding' the seller's payout, so they need a direct transfer
- Contact details, a personal email, or phone number slipped into the listing text, photos, or username
- Pressure to end a listing early or move the conversation to personal email or text
- A discount that only applies if you pay the fee-free, protection-free PayPal Friends & Family way
How to protect yourself
- Complete every eBay purchase inside eBay's own checkout so the Money Back Guarantee applies
- Refuse any request to pay a seller by PayPal Friends & Family, whatever reason is given, and report it
- Treat any nudge to transact off eBay as a decisive red flag and stop the deal
- Ignore 'Second Chance Offer' emails that ask for direct payment; check the real offer only inside your eBay account
- Keep all communication in eBay Messages, never personal email, text, or a chat app
- If selling, insist buyers pay through eBay checkout so both sides keep a real transaction record
How to report it
- Report the seller and messages to eBay via the listing's 'Report item' link or the Help & Contact centre
- Forward suspected fake eBay or Second Chance Offer emails to eBay's spoof-reporting address ([email protected])
- Report a fraudulent PayPal Friends & Family payment to PayPal, though gift payments carry no purchase protection
- Dispute the charge with your bank or card issuer if you funded the PayPal payment that way
- File a complaint with the FTC at reportfraud.ftc.gov or your country's consumer protection agency
Frequently asked questions
If a seller found me through an eBay listing, isn't paying them by PayPal Friends & Family still safe?
No. The moment payment leaves eBay's managed checkout, the eBay Money Back Guarantee no longer covers the transaction, and a Friends & Family payment carries no PayPal Purchase Protection either. You end up with zero recourse on both platforms. A legitimate eBay seller completes the sale inside eBay checkout; a request to pay directly by Friends & Family is the warning sign, regardless of how reasonable the reason sounds.
I got a Second Chance Offer email after losing an auction. Is it real?
Real Second Chance Offers do exist, but genuine ones are paid through normal eBay checkout, never by sending PayPal Friends & Family to an address in an email. Don't act on the email directly. Sign in to eBay separately and check your account's messages or purchases. If the offer only appears in the email and demands off-platform payment, treat it as a spoof and forward it to eBay's spoof-reporting address.
Why would a genuine seller ask me to leave eBay to complete the sale?
They generally wouldn't. eBay's terms prohibit finalising sales off-platform precisely because it removes buyer protection, and honest sellers know it costs them their own protection too. Excuses about avoiding fees, held payouts, or account glitches all lead to the same outcome: your payment becomes an unrecoverable gift. When a deal only works one specific off-eBay, fee-free way, that constraint is the scam.