Our small homeschool group set up our business account with PayPal to collect payments from our families.
A friend/homeschool leader said we should accept money through the “friends and family” option on PayPal and avoid the PayPal fees. I didn’t even realize this was an option for a business account, but it is. I’m not sure if that’s legit.
What scenario would I ever accept money via friends and family?
Thanks so much for your service to us homeschooling mamas!
-V, a homeschool group leader
Since you are accepting payment for rendering a service, you cannot avoid the PayPal fee.
To use the “friends and family” option would be deceitful.That option is for true transfers of money among friends, but not if your group is getting paid for rendering a service.
No one likes paying fees, but PayPal is doing your organization a service (processing credit card or debit card payments) and you should expect to pay for that service. You may have to increase your fees to the families a bit to cover the extra expense, but paying the Paypal fees is the correct, proper and legal way to run your homeschool group.
Carol Topp, CPA
Have more questions about managing the money in your homeschool group? My book Money Management in a Homeschool Organization may be just what you need!