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Pretty much. I forget but usually a payment for goods or services looks a little different, but I can't remember what the differences were.
And usually PayPal is on the buyer's side.
I think the OP was asking about legitimately asking for a refund, not engaging in fraud.
Normally, F&F payments can be refunded at the discretion of the payment receiver, but in terms of disputes, F&F payments are not covered by the normal protection mechanisms Paypal has in place. The idea is that they are friends and family, and so you should be able to trust them and not need those services. That's why you have to be careful if you're using it for any large amount.
However, if you're the receiver of the F&F payment you're the only one who can issue a refund through the account page. The sender doesn't have that option if he uses F&F as the payment method. I think that was what the OP wanted to know.
Yes, of course. The only person who can refund money is the person who receives money, absent a dispute. It's always that way, no matter if it's a F&F payment or a purchase from a seller.