Is really free the Paypal Gift Payment?

[dsapkota]

(Dear Moderator,

If this post is not appropriate, I request you to remove it.
But, as this forum is for buy and sell items, paypal is the commonest online payment, I believe this post is appropriate and informative.)

Dear all,
Now a days I see very often buyers and sellers talking about Paypal Gift payment. I am wondering if it is really free of paypal fees and is there any limit or not how much one can send or receive?

Somebody told me Gift Payment is free only when if you use your Payapl balanced Fund to pay using Gift option, otherwise, the fees will be regular 3.5% if you don't have paypal balanced fund but you use other source of method of payment like bank or credit card.

Can you please let me know as per your knowledge and experience?

 

[brianb032]

Somebody told me Gift Payment is free only when if you use your Payapl balanced Fund to pay using Gift option, otherwise, the fees will be regular 3.5% if you don't have paypal balanced fund but you use other source of method of payment like bank or credit card.

That's correct. The only method I know of at the moment that is fee-free while using credit and debit-cards is Amazon payments. The free ride probably won't last long though, so hop on the gravy-train and enjoy the fee-less payments while you can. There's no way they're making money when Visa and Mastercard both charge 3% on every transaction.

 

[dsapkota]

Thanks Brianb032 for your reply.
I also found that if you use your Bank Account as source of payment for Gift Option at paypal, there is only 1% fees and for Credit Card regular 3.5%.

 

[aleksanderpolo]

Having been scammed twice in recent months on online forums (once on RFF, once on FM), I would suggest buyer to use paypal purchase option, no matter how trustworthy you think the seller is. 3% is not a big price to pay for some security/insurance.

 

[Tim Gray]

As I understand it, the Paypal gift option merely shifts the 3% fee from the seller to the buyer.

 

[luke_28]

As I understand it, the Paypal gift option merely shifts the 3% fee from the seller to the buyer.

Only if the buyer is using a credit card.

Gift payments are not intended for the purchase of goods. That is why the purchase of goods is only an option when you send a Business payment. Using gift payments for the purchase of items, is going outside of Paypal's user agreement. If they catch you they will suspend your use of gift payments, as is what happened with several members on Fred Miranda.

It used to be that Paypal would not cover any transaction if it went bad, other than ebay purchases. It appears that they recently changed their stance on this, but I've yet to hear of anyone successfully disputing a claim with Paypal (not their credit card company) for a transaction on forums and receive a refund from Paypal. I've heard too many horror stories to trust paypal.

 

[Sparky16]

PayPal gift or money owed option charges no fee to either buyer or seller, if funded from bank account. If funded by CC, the sender(buyer) pays 2.9%

 

[segedi]

I recommend buying and selling by not using the Gift option as well. No buyer or seller protection when it's "gifted".

"I've heard too many horror stories to trust paypal." - Is paypal really to blame or the con artists who use it?

BTW, I've never had any problems buying or selling. But I usually check up on people that cast any doubt on a deal.

 

[Tim Gray]

Only if the buyer is using a credit card.

Gift payments are not intended for the purchase of goods. That is why the purchase of goods is only an option when you send a Business payment. Using gift payments for the purchase of items, is going outside of Paypal's user agreement. If they catch you they will suspend your use of gift payments, as is what happened with several members on Fred Miranda.

Interesting. I don't do gift payments thing anyway on either side.

If you have a personal and not premier paypal account, you used to be able to accept payments from other users without any fees as long as they funded from either a paypal balance or were backed by a bank account, i.e. not credit card transactions. There was a monthly limit on how much you could accept each month (a couple thousand). Also, that system might not be in place anymore...

 

[luke_28]

"I've heard too many horror stories to trust paypal." - Is paypal really to blame or the con artists who use it?

The biggest issue I see is when for some reason the buyer finds something about the item that they don't like or feel was described enough, or the photos weren't clear enough, etc, and they file a dispute against the seller. Paypal almost always sides with the buyer and will refund their money because the buyer says it isn't as described. So the honest seller gets a frozen account or money taken out of their account, and the buyer gets to use or keep the item without any repurcussions because they paid with Paypal. It hasn't happened to me yet, maybe I've been lucky, but I've read about it happening numerous times.

 

[dsapkota]

PayPal gift or money owed option charges no fee to either buyer or seller, if funded from bank account. If funded by CC, the sender(buyer) pays 2.9%

I don't think it is true. Only if you use the balance fund you have in your payapal account, then there is no fees but there is 1% fees if you use bank account and 3.5% (or 3%?) if you use Credit Card. Correct me, if I am wrong.

 

[dsapkota]

The biggest issue I see is when for some reason the buyer finds something about the item that they don't like or feel was described enough, or the photos weren't clear enough, etc, and they file a dispute against the seller. Paypal almost always sides with the buyer and will refund their money because the buyer says it isn't as described. So the honest seller gets a frozen account or money taken out of their account, and the buyer gets to use or keep the item without any repurcussions because they paid with Paypal. It hasn't happened to me yet, maybe I've been lucky, but I've read about it happening numerous times.

Not true. Paypal doesn't refund money back to the buyer unless he sends the item back to seller.

 

[Karlo]

Do NOT use the GIFT option in any situation on the internet. You will end up loosing a lot more than the 3-4%.
There is no way you as a buyer can act upon your seller if the transaction goes south...

BTW, I am willing to lose an item if the seller is insisting on the gift option, if you won't accept payment for what its for I'll take my business elsewhere.

 

[dsapkota]

Do NOT use the GIFT option in any situation on the internet. You will end up loosing a lot more than the 3-4%.
There is no way you as a buyer can act upon your seller if the transaction goes south...

Thanks.

 

[richard.L]

..... There's no way they're making money when Visa and Mastercard both charge 3% on every transaction.

Just as an FYI, not every transaction contract is the same. They can be per transaction (fixed) cost. They can be based upon percent of sales, based upon sales volume... etc.

This information doesn't counter your recommendation to do it now.

Richard
Big kids get to play with different balls and bats. -- that rat bastard next door
Everybody got to pay, some people got to pay more -- Van the Man

 

[SYGTAFOTO]

I have done both regular and gift via paypal and have been lucky on all so far (I may have to excercise my rights on one soon though..)

There is no legal obligation for seller to send anything if buyer pays as gift.. word "gift" means giving something without expecting anything in return.. The risk is not receiving your good and the benefit is ~3%.

 

[frank2001]

I won't use "gift".
Processing our purchases is a convenience and is not "free".
If you choose you can opt to use the US Mail and money orders (which aren't free)
Plus, there is no protection at all!
I always offer to split the fees or walk away from the transaction.

 

[mathomas]

I won't use "gift".
Processing our purchases is a convenience and is not "free".
If you choose you can opt to use the US Mail and money orders (which aren't free)
Plus, there is no protection at all!
I always offer to split the fees or walk away from the transaction.

+1

 

[ohdannyboy]

I always make sure (as a seller) that if the payment is sent as gift, I always transfer to my bank account and make sure it clears there before sending the item. I always tell the buyer this so that they are aware of my policy. In this manner, I avoid scams.

 

[fotografz]

I do allow Send Money-Gift purchases for buyers as a convenience to them. I couldn't care less how they pay for an item as long as I net the agreed-upon price for the item. If they want the buyer protection from PayPal they can pay for it ... I'm not an insurance company.

Gift is supposed to be for paying a debt, sending money to someone (like a student) or making a loan payment to an individual.

Gift Debit from a PayPal balance, or an e-check from a VERIFIED bank account is free of any fees for sender and receiver. If there is a limit on the amount, I haven't reached it ... ever ... I just sold a $4,000. camera and privately sent the buyer a separate signed guarantee and 7 days to decide no matter what. No fees.

IMO, it is no one else's business what financial arrangements I've made with another person ... and if anyone is concerned about PayPal making a profit simply look up the financial term "float" ... and note how long they hold on to the money in these times of instant electronic transfer ... now, times that by millions of transactions.

If there is a legitimate misunderstanding (as opposed to some flakey buyer's remorse), I'll immediately refund the money once the item has been returned in the condition sent. My reputation here as a seller is worth much more than any specific sale. BTW, I only sell stuff on GetDpi, and usually to people whom I know, or they know me, or know people who have purchased from me.

-Marc