PayPal "gifts"

jlabate

Mu-43 Regular
Joined
Nov 22, 2010
Messages
132
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?

Joe
 

deirdre

Mu-43 Top Veteran
Joined
Aug 9, 2010
Messages
661
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.
 

jlabate

Mu-43 Regular
Joined
Nov 22, 2010
Messages
132
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.
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?

J
 

pxpaulx

Mu-43 All-Pro
Joined
Jan 19, 2010
Messages
1,265
Location
Midwest
Real Name
Paul
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.
 

jlabate

Mu-43 Regular
Joined
Nov 22, 2010
Messages
132
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.
But wouldn't PayPal take the money anyway regardless if it was a gift or a payment for goods?
 
Joined
Oct 9, 2010
Messages
7,397
Location
Brisbane, Australia
Real Name
Nic
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.
 

joele

Mu-43 Regular
Joined
Dec 12, 2010
Messages
165
Location
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...
 

WT21

Super Moderator
Joined
Feb 19, 2010
Messages
6,511
Location
Boston
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.
 

Luke

Mu-43 Hall of Famer
Joined
Jul 30, 2010
Messages
2,305
Location
Milwaukee, WI
Real Name
Luke
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.
 

squidbrand

Mu-43 Regular
Joined
Dec 22, 2010
Messages
55
Location
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.
 
Joined
Oct 9, 2010
Messages
7,397
Location
Brisbane, Australia
Real Name
Nic
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.
 

joele

Mu-43 Regular
Joined
Dec 12, 2010
Messages
165
Location
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..
 

m1pui

Mu-43 Veteran
Joined
Dec 30, 2010
Messages
257
Location
Sunderland, UK
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.
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.
 
Links on this page may be to our affiliates. Sales through affiliate links may benefit this site.
Mu-43 is a fan site and not associated with Olympus, Panasonic, or other manufacturers mentioned on this site.
Forum post reactions by Twemoji: https://github.com/twitter/twemoji
Copyright © 2009-2019 Amin Forums, LLC
Top Bottom