If you opened your PayPal account before you were 18, close it
Just close your account if you have a PayPal account at all.  They limit and freeze funds at random and good luck resolving it.<p>OP, You can refund the funds to the sender less Paypal's 30¢ cut, I believe.  That might be the best way to get the money back to your friend, and then they can re-send it to you with something sane like Google Wallet.