Paying Your Contractor with PayPal: pros and cons!

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When it comes to paying contractors, many of us use cash or card. However, PayPal is becoming an ever more popular option. If your contractor accepts PayPal, should you try it? Here are some pros and cons.


Buyer Protection

Doing business through PayPal ensures buyer protection. Should your contractor not do the work that was promised, you can take a case up through PayPal. With any dispute, always have proof ready, such as your conversations and any contracts you signed. This way, you have a higher chance of successfully getting your money refunded.

With buyer protection, you’re invited to talk to the contractor yourself. If you can’t agree to a compromise or your contractor isn’t responding, you can escalate it to PayPal. The good thing is that if the contractor ghosts you, PayPal usually awards your money in your favor.

With that said, never send money to a contractor using the “friends and family” option. PayPal treats these transactions like giving a friend a gift, and they don’t qualify for protection. If a contractor demands you to use the friends and family option, they’re likely scamming!

Easier to Account for

With any digital purchase, accessing the receipt is much easier than if you got a receipt by paper. If the work you pay for is a tax write-off, it’s much easier for you to access it. Not much else to say here.

PayPal Credit

Another great feature of PayPal is their credit option. You can choose to pay through your bank or through a card, but they have their own line of credit. If you qualify, you can make a purchase through PayPal Credit, and if you pay it off within 6 months, there’s no interest.

With that said, the amount of credit you’re allowed differs and is usually only a few thousands, making it ideal for smaller jobs.


Extra Fees

It doesn’t cost any extra fees for you to make a purchase through PayPal, but the seller has a cut taken off by PayPal. Because of this, many sellers may charge a little extra if you decide to use PayPal. This depends on the contractor, and some contractors may count their losses if it means you feel secure by purchasing through PayPal.

It’s An Extra Hassle

If you’re new to PayPal, having to start a new account, link your card or bank account to it, and learn how to use it may just not be worth it, especially if your contractor is charging less. Of course, you may have PayPal, especially if you use eBay, a site that pressures you to get PayPal.

Many Don’t Accept PayPal

Finally, the biggest con of using PayPal is that many contractors won’t use it. Some just want cold, hard cash or card, and a transaction that is more digital doesn’t work for them. In the future, you are going to see more businesses using PayPal or a similar service, but for now, there’s a chance your contractor may not want to use it.


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