PayPal Gift?

What's the deal with paying for something as a PayPal "gift"?

Is this beneficial to the seller? The buyer? Both? Neither?

I've seen the phrase used a lot lately, and I have no idea what it is.

Thanks!

No fees, but also no buyer protection. Check the seller's feedback.

TabulaVicious wrote in post #14351405
No fees, but also no buyer protection. Check the seller's feedback.

Do you have to have funds in paypal account? When I select gift option, I still see the fees (payed by the buyer).

^^Like Tabula said.

PayPal offers payment through a "gift" method. For example, if you had a niece who had a birthday, and you wanted to send her money immediately. This method does not charge a fee because it's a "gift". This is the original purpose of the payment method.

Frequently, sellers and buyers have used this method to agree on a lower price when selling an item, since the seller isn't paying a transaction fee. However, because there is no fee, there's no buyer protection. So say you bought a lens from a member on the forum. It shows up damaged and the seller doesn't answer any of your emails. Since it was a "gift", you can't go to PayPal and file a claim.

To answer your question. It's beneficial to the seller since he/she isn't charged a transaction fee. It CAN be beneficial to the buyer if the seller passes those savings onto you. But the BUYER is also giving up any type of protection. The buyer has to weigh the savings vs. the protection associated with the fee.

shine1 wrote in post #14351448
Do you have to have funds in paypal account? When I select gift option, I still see the fees (payed by the buyer).

No fee if it's coming from an account (checking, savings, etc.). If you're trying to use a credit card, there will be a fee.

If you really want to save fee use MO or some other method. Then you are not breaching anyone's contract and you save Paypal fee who may or may not act if something goes wrong.

Thanks, folks. I figured it had to do with the fees. I had no idea that it removed buyer protection...

Also Pay Pal is cracking down on this and looking at transactions more closely. So be advised.

I won't use it.

Gizmo1137 wrote in post #14352775
Also Pay Pal is cracking down on this and looking at transactions more closely. So be advised.

Yup. I've got a buddy that can't take PayPal gift any longer because it was the only way he took payment. Now, he pays a fee on everything.

I won't accept it. I only accept normal PP. And when buying something ill pay the extra 3% instead of a gift option. And if they say no then chances are, its a scam.

Yep, it someone won't take regular payment I just move on down the road.

alpha_1976 wrote in post #14352299
If you really want to save fee use MO or some other method. Then you are not breaching anyone's contract and you save Paypal fee who may or may not act if something goes wrong.

I remember 14 years ago when I started using eBay that was the only way to do it (other than a personal check and having to wait for it to clear the bank). Wow, we've come a long way.

rick_reno wrote in post #14353272
I won't use it.

Pay Pal or gift option?

alpha_1976 wrote in post #14352299
If you really want to save fee use MO or some other method. Then you are not breaching anyone's contract and you save Paypal fee who may or may not act if something goes wrong.

I am not following this. If you use money orders, checks or direct transfer, then what's the difference between these vs Paypal gift? There is no protection for the buyers either. Am I missing something here?