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PayPal "gifts"

Discussion in 'Open Discussion' started by jlabate, Feb 1, 2011.

  1. jlabate

    jlabate Mu-43 Regular

    Nov 22, 2010
    I've noticed equipment for sale with a mention of paying through PayPal as a gift so they don't take a percentage of the transaction. How does that work? Is it really as simple as that?

    • Like Like x 1
  2. deirdre

    deirdre Mu-43 Top Veteran

    Aug 9, 2010
    No, it's not that simple, and I'd never do a transaction that way as it doesn't protect the buyer. The gift option does give you the ability to add the fees on, which is why it's recommended. I think pricing it to include any fees (since different accounts and countries have different fees) is more appropriate.
  3. jlabate

    jlabate Mu-43 Regular

    Nov 22, 2010
    How about as a seller? Someone offered to pay me the "gift" so PayPal wouldn't take a percentage. Is that right, they don't unless I request it? Is there anything else a should be concerned about as the seller?

  4. LisaO

    LisaO Mu-43 Top Veteran

    Mar 18, 2010
    New York Metro Area
    If you receive too many gifts from different sources paypal will send threatening emails.
  5. pxpaulx

    pxpaulx Mu-43 All-Pro

    Jan 19, 2010
    I would only send gift or accept payment if I personally know the other party, or am well acquainted with them on this or pentaxforums (i.e. a long post history, direct discussions and extensive feedback). As a buyer, you have no protection - a gift is just that, and is a payment for goods - if they skip out on sending it, you are SOL. As a seller, a fraudulent account could be used to make the payment, then when it comes back, paypal will take that money right out of your account.
  6. jlabate

    jlabate Mu-43 Regular

    Nov 22, 2010
    But wouldn't PayPal take the money anyway regardless if it was a gift or a payment for goods?
  7. A regular paypal transaction includes both buyer and seller protection against fraud. A 'gift' transaction does not, one of the reasons why you pay no fees.
  8. joele

    joele Mu-43 Regular

    Dec 12, 2010
    Melbourne, Australia
    Agree with pxpaulx, if I don't know them personally I completely ignore sales where the seller asks you to pay via 'gift'.. It means they can send you nothing (or a busted lens etc) and you have no buyer protection whatsoever through paypal...
  9. WT21

    WT21 Super Moderator Subscribing Member

    Feb 19, 2010
    Several folks at FredMiranda have said their paypal accounts were shut off (or at least the gift option was shut off) because they used the "gift" option to frequently.

    I think there is an ethical component as well. Their terms clearly state that commercial transactions are not to use gift. IMO, they provide a service, they should be paid for it.

    On a more practical level, when people circumvent the rules this way, they are just asking for more draconian measures to be put into place.
  10. jlabate

    jlabate Mu-43 Regular

    Nov 22, 2010

    Thanks all for the valuable input.

  11. Luke

    Luke Mu-43 Hall of Famer Subscribing Member

    Jul 30, 2010
    Milwaukee, WI
    Calling it is a gift when it's not is stealing. You can justify it if you want, but it is what it is. All you need is one person to back out on you and you will appreciate what they offer for their fee.
  12. squidbrand

    squidbrand Mu-43 Regular

    Dec 22, 2010
    Hà Nội, Việt Nam
    I detest PayPal. Their customer service is opaque and awful, their fees are way too high, and they love to suspend your account and freeze all your funds for no reason. (This happened to me just a few weeks ago, actually.) The only reason I ever use them is that I sometimes have no other choice, because they have a virtual monopoly over person-to-person online payments, thanks to getting bought out by eBay and rammed down all eBay users' throats with devious advertising designed to scare sellers away from any other payment method lest it reduce their chances of selling. Their dominance is the only reason they get away with what they get away with, so I have no problem maneuvering within their own set of rules to ease the crappiness of the experience in situations where a seller isn't comfortable dealing with a postal money order or a direct bank transfer.

    I mean, they try to present themselves in a bank-like manner, even claiming to have "FDIC proxy insurance" (whatever that means). What bank takes 3% of your money when you pay for something? The only compensation my bank asks for in exchange for providing bank services is getting to keep all my money, which is the whole point of a bank.

    The world badly needs a serious PayPal alternative.
  13. Fees aside, I've never had a problem with Paypal touch wood. All disputes I've launched with dodgy sellers have been resolved correctly. Paypal act more as an intemediary than a bank; they don't exist to hold and invest money, just move it around between buyers and sellers.
  14. joele

    joele Mu-43 Regular

    Dec 12, 2010
    Melbourne, Australia
    As a buyer I love paypal they have helped me out a few times, as a seller I can see the problem with them, it is very easy for the seller to get ripped off..
  15. m1pui

    m1pui Mu-43 Veteran

    Dec 30, 2010
    Sunderland, UK
    And any alternative would charge you a very similar rate for what they offer. It might not be foolproof, but as an intermediary, they at least offer some layer of protection in case transactions go awry. If you can suggest a better method of doing things that would be sustainable with little/no fees applicable to either party, I'd love to hear it?

    If you didn't have the privilege of online banking, you would be charged anything between £20-35 to walk into a bank and do a sameday CHAPS transfer, regardless of whether you were sending £1 or £10,000 to the other party. So it's not entirely true that banks don't charge you for using your money, even though they after little, if any, ability to help you claw it back if you have any problems, same goes for cheques and postal orders.
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