As a premiere member of Paypal, my understanding is that the 3% fee will be charged to the recipient when I "Purchase Goods", and the fee is applied whether I choose credit card or bank transfer to provide the funds. Is this correct? And the same when someone pays me?

I no longer use "Gift" as I received a nastygram from Paypal warning that my account would be closed if I continued to send gifts.

However, I see there is another option, "Payment Owed", which seems to have zero fee when paid from bank account. Assuming one is sending funds to a seller that one knows and trusts, is there any reason not to choose this option to avoid fees? (I understand there would be no buyer protection available, and we may also debate the value of the buyer protection in any case.)