What are the red flags of this scam?

The buyer instantly agrees to your price without viewing the item or asking questions • They insist on paying by PayID and cannot meet in person — often claim to be interstate or too busy • You receive an email claiming to be from PayID saying your payment is 'on hold' — PayID does not send emails • The email says you must upgrade to a 'business account' or pay a fee to 'release' funds — no such thing exists • The buyer helpfully reassures you: 'I had the same issue when I started, the fee gets refunded instantly' • You are sent a BSB and account number to transfer the upgrade fee to — this is the scammer's account

What should I do if this happened to me?

Open your banking app and check your actual balance — a real PayID transfer arrives in seconds with no emails, fees, or upgrades • If your balance has not changed, you have not been paid — delete the conversation and do not transfer anything • There is no such thing as a PayID business account or a PayID upgrade fee — any email or message claiming otherwise is a scam • PayID does not send emails of any kind — a 'PayID email' is always fake • If you already transferred money: call your bank immediately on the number on the back of your card — some banks may be able to recall the payment • Report to Scamwatch at https://www.scamwatch.gov.au/report-a-scam or ReportCyber at https://www.cyber.gov.au/report.

MEDIUM marketplace Last reported: 25 Sept 2026 Share

A Facebook Marketplace buyer says your PayID needs a "business upgrade" before they can pay you

Q: Is this a scam?

Yes. This is a documented scam pattern. A buyer on Facebook Marketplace or Gumtree quickly agrees to your price, then sends a fake PayID email saying your personal account must be "upgraded to business" before the payment can release. You are asked to transfer $150–$300 for the upgrade. PayID has no business accounts and never sends emails — the buyer is a scammer.

A buyer on Facebook Marketplace or Gumtree quickly agrees to your price, then sends a fake PayID email saying your personal account must be "upgraded to business" before the payment can release. You are asked to transfer $150–$300 for the upgrade. PayID has no business accounts and never sends emails — the buyer is a scammer.

Also known as: PayID business account scam, Facebook Marketplace PayID upgrade scam, fake PayID email scam Australia, Gumtree PayID seller scam, PayID upgrade fee scam

Already happened to you? Do this in the next few minutes

1 Call your bank or card's fraud line right now. Use the number on the back of your card — not any number from the message or caller. Ask them to stop or reverse the payment and freeze the account.
2 If you paid by gift card, wire, or an app (Zelle, Venmo, Cash App): contact that company immediately and report it as fraud. Acting fast sometimes recovers the money.
3 Report to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov. The sooner, the better.

What to do right now

1 Open your banking app and check your actual balance — a real PayID transfer arrives in seconds with no emails, fees, or upgrades
2 If your balance has not changed, you have not been paid — delete the conversation and do not transfer anything
3 There is no such thing as a PayID business account or a PayID upgrade fee — any email or message claiming otherwise is a scam
4 PayID does not send emails of any kind — a 'PayID email' is always fake
5 If you already transferred money: call your bank immediately on the number on the back of your card — some banks may be able to recall the payment
6 Report to Scamwatch at https://www.scamwatch.gov.au/report-a-scam or ReportCyber at https://www.cyber.gov.au/report.

Red flags

⚠ The buyer instantly agrees to your price without viewing the item or asking questions
⚠ They insist on paying by PayID and cannot meet in person — often claim to be interstate or too busy
⚠ You receive an email claiming to be from PayID saying your payment is 'on hold' — PayID does not send emails
⚠ The email says you must upgrade to a 'business account' or pay a fee to 'release' funds — no such thing exists
⚠ The buyer helpfully reassures you: 'I had the same issue when I started, the fee gets refunded instantly'
⚠ You are sent a BSB and account number to transfer the upgrade fee to — this is the scammer's account

Already happened to you? Do this in the next few minutes

What to do right now

Red flags

Sources