Payment to "Friends and Family" CAN be claimed back by the person that payed!!!!
I had someone I know make a payment to me with "Payment to Friends and Family". It was a payment to settle his part of a common bill we had (weekend trip with friends). Afterwards, this "friend" got mad at the rest of the group of friends (won't mention the reason).
Apparently he had made the PayPal payment with his Credit Card, and he claimed the amount back from his CC company, claiming it was a payment for goods he bought and he never received the goods! So the CC company opened a claim with PayPal, and PayPal just took the money from my PayPal account!
What the hell is this? PayPal just took a few hundreds of euro's from my account just like that! Just because someone who is mad, files a false claim at his CC company to claim a payment back that was made as "Payment to Friends and Family".
This makes PayPal COMPLETELY unreliable! I will never accept payments through PayPal anymore and will only pay through PayPal. Unbelievable!