PayPal "Gift" Option

choppadude · Sep 7, 2014

Last year I posted a thread about the dangers of using the "Gift" option with Paypal and the lack of protection for doing so.
Well........ most responses were of the opinion that I was being overly cautious and paranoid since ALOT of guys here on the forum were doing business with each other and using the "Gift" option. When I stated that this is clearly fraud to do so I was even told by a Mod that they are not the internet police and that people were free to do as they wished.
I now see a few threads about guys getting scammed and it seems that NOW the majority of the members are warning NOT to use the "gift" option.
It seems that people attitudes have changed about this.
Personally I will say that many people had no problem committing Fraud against paypal when they could save a couple bucks, but now when it looks like people are getting ripped off for amounts in the $100+ range everyone and their brother is screaming from the hilltops to not do it.
What's your opinion?

SavingThePast · Sep 7, 2014

My opinion is to know who you are dealing with and then make your decision based on how you feel. I have no problem paying with the gift option with long standing members with numerous positive feedback, then again, there are others where I would not buy an item unless the seller would sell with the regular paypal transaction....

itsaring! · Sep 7, 2014

If you use paypal. It's called Family or friends. Just don't gift it to someone not family and someone you don't consider a friend. It's still only one or two who ruined it for the whole bunch. Hell now if you use paypal they may say you never shipped the detector but an empty box and take your money and detector through a dispute. They don't need the gift option to stick it to you.

hawgdawg · Sep 7, 2014

I remember your post , and I do agree with you . And I agree with the mods . If someone uses paypal and they use the gift option , then they should accept what ever happens to them , it was their choice , they knew the consequences , live with it , good or bad . I have made a few deals on here with members using the gift option , and luckily , alls well .
So some people , like yourself , can look ahead and see the possible repercussion's from these type's of decision's , and will usually do whatever it takes to avoid these situations . Then , as it happened to you , when you warn people about the risk they are taking in these purchases , label you as an " untrusting soul amongst friends " .
So now it's the " I hate to say I told you so , but I told you so " .
So , you were right and now I bet a few wished they had listened to you , or at least read your post .

gianetics · Sep 8, 2014

when your selling just include the paypal fees in your price thats what i do. i have used it on here before but never on any other forums. I only used it with members that have been on her for years and had feedback, but it is always a risk. i chalk it up to penny wise pound stupid. if i am buying an etrac for 1000 bucks you better believe im paying using goods not gift

Robo99 · Sep 8, 2014

There really isn't a fraud in the money section, the 3% just comes from the buyer, instead of being taken out of the sellers money they receive. You do lose the protection of buying under goods and services though. The gift option is meant as just that, your kid is at college, and needs 400 bucks for books, so you can PP 400 as a gift and he receives the 400, but the 3% is tacked onto what is drawn from the senders acct which is now $412, instead of your kid only getting $388.

Best thing to do, if you don't know people you are dealing with, bump your starting price up a little to cover your loss when PP takes their 3%, then you still have the coverage. if you want 400 for your detector, list it at 420 to start with, then after fees you still have your 400. I have used gift both ways, and I believe they changed the 3% thing a while back if you were pulling from your actual bank acct, and waived the fee, as no credit card charges will be assessed for that transaction. Don't quote that, I am not certain, but do remember reading something on it.

Cherry Picker · Sep 8, 2014

Of course you need to know who you're dealing with. I would never use the gift option to pay for something from someone who just joined the forum.

Now, You can't open a dispute, but, even when you send money to family or friends, there is no gift option anymore, you still have the disclaimer below that says you have 30 days to file a claim on the transaction. Do a search on the Internet and you will find Paypal will cover you even using the sending money to Family or Friends if you're scammed.

Again, it is still best to deal only with those with a record to back them up and use a card at your bank so you can do a chargeback if you get screwed.

From the Paypal forum.

could i file a dispute/claim for a payment i sent as gift? could i get my money back?
‎11-11-2010 06:11 PM

Just file it as a unautherized action. They will refund you the money.

Re: If I Receive A Paypal Gift, Can It Be Reversed?
They can always chargeback and get the money back, even if they gifted.

AIRFORCEMIKE · Sep 8, 2014

Robo99 · Sep 8, 2014

Send money to family and friends, is the gift option, just reworded. The sender pays the fee.
Pay for goods and services get you this:
No fee for you. The seller pays the fee. Plus, you're covered by PayPal Purchase Protection.
Send money to family and friends get you this:
No fee if you use your PayPal balance or bank account for domestic transactions.
Meaning you pay the fee if these options do not apply.

detectingMO · Sep 8, 2014

there is no fee for sender with bank account or balance transaction for ff. only if using a card.

papaharley03 · Sep 8, 2014

Robo99 said:
I have used gift both ways, and I believe they changed the 3% thing a while back if you were pulling from your actual bank acct, and waived the fee, as no credit card charges will be assessed for that transaction. Don't quote that, I am not certain, but do remember reading something on it.

Yes, that's what happened. They used to not hit you with a 3% fee for funding a transaction with your credit card. Now they do, regardless of whether it's goods and services or family and friends. So if you buy something that the seller says add the 3 percent if you aren't gifting, you get hit twice... paying the seller's fee for them and the credit card fee.

sycotoad · Sep 10, 2014

choppadude said:
Last year I posted a thread about the dangers of using the "Gift" option with Paypal and the lack of protection for doing so.
Well........ most responses were of the opinion that I was being overly cautious and paranoid since ALOT of guys here on the forum were doing business with each other and using the "Gift" option. When I stated that this is clearly fraud to do so I was even by a Mod that they are not the internet police and that people were free to do as they wished.
I now see a few threads about guys getting scammed and it seems that NOW the majority of the members are warning NOT to use the "gift" option.
It seems that people attitudes have changed about this.
Personally I will say that many people had no problem committing Fraud against paypal when they could save a couple bucks, but now when it looks like people are getting ripped off for amounts in the $100+ range everyone and their brother is screaming from the hilltops to not do it.
What's your opinion?

I am with you 100% CD - I am in NZ and always pay the +3% or whatever it is, from whoever I am buying from - Even if they offer the 'gift' option - I think Paypal are a godsend as I was ripped off almost $1000 on my first metal detector deal on ebay & Paypal had my money back to me in no time - Great service & I have never thought twice about abusing their system -

Your advice on this Choppadude is invaluable - cheers :cool:

Sven · Sep 10, 2014

Paypal works because you can get your detector shipped the next day and have it for the weekend. Using snail mail and a money order could take up to two weeks before you can go hunting. Then again for a faster transaction, you can send your M/O by Priority Mail, now your still getting hit with a M/O fee and Priority Mail fee. Here in Canada a Postal Money Order is $7.50. no cheap Flat Rate Priority Mail here.

Paying fees is determined on how badly you want the detector.
How fast you want your detector is determined bt payment method.

The world is a Land of Fees..............................

itsaring! · Sep 10, 2014

detectingMO said:
there is no fee for sender with bank account or balance transaction for ff. only if using a card.

What he said. I used the gift option a bunch of times to send money. Never been charged a fee. I don't use credit cards. Best advice I could give is buy a pair of scissors as a gift to yourself and cut your credit cards in half. Lady at Home Depot messes with me every time I'm in there since she has to say. "Charge it to your Home depot card and you get yada yada." To which I say " You also get a bill in the mailbox with a 23% interest rate on it!" :lol:

choppadude · Sep 10, 2014

itsaring! said:
What he said. I used the gift option a bunch of times to send money. Never been charged a fee. I don't use credit cards. Best advice I could give is buy a pair of scissors as a gift to yourself and cut your credit cards in half. Lady at Home Depot messes with me every time I'm in there since she has to say. "Charge it to your Home depot card and you get yada yada." To which I say " You also get a bill in the mailbox with a 23% interest rate on it!"

Just did a kitchen remodel a couple months ago and used my bank card at Home Depot to pay, now I find out that there has been a big theft of credit card/bank card info! Guess that is why "Cash is King".

Did not know about the changes to the "gift" option on Paypal but still see a lot of sellers on here still ask for "payment via the gift option or add 3%"

I have always gladly added the 3% as it is well worth the protection it provides.

itsaring! · Sep 10, 2014

choppadude said:
Just did a kitchen remodel a couple months ago and used my bank card at Home Depot to pay, now I find out that there has been a big theft of credit card/bank card info! Guess that is why "Cash is King".

Did not know about the changes to the "gift" option on Paypal but still see a lot of sellers on here still ask for "payment via the gift option or add 3%"

I have always gladly added the 3% as it is well worth the protection it provides.

Yeah its just sad we live in the age we do sometimes. Heck even CL has the fake posters looking for lost rings to see how many rings they can get, etc. Someone is always out to get something for nothing. Cover your *** should be taught in the first grade these days.

Jo ann · Sep 10, 2014

If you are talking about some one using "gift" option to buy something, than legally the money is a gift and legally the person doesnt have to send you squat, no matter what the beforehand agreement was, I sugest to not use it in a transaction, but if you are donating to someone without expectation of recieving something than that is the button to hit, shame that people abuse others for a few bucks.

PayPal "Gift" Option

choppadude

SavingThePast

itsaring!

24K Larry

hawgdawg

gianetics

Elite Member

Robo99

Cherry Picker

AIRFORCEMIKE

Robo99

detectingMO

papaharley03

sycotoad

Member

Sven

Elite Member

itsaring!

24K Larry

choppadude

itsaring!

24K Larry

Jo ann

Elite Member

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