question PayPal "gift" payments

[krx]

It can save a lot of fees to use Paypal's "gift" pay option. But obviously paypal doesn't want you to get around paying fees this way. Are there any repurcussions to doing this? Anybody ever been banned for this?

If not, why wouldn't everybody use it for every transaction?

 

[FPForum]

Paypal gift payments cannot be charged back. That means, if you pay someone using this method and they scam you, there won't be anything you can do to get the money back. Some people use it when sending money to friends or family since there are no fee's taken out on the receivers end and some people use it for domain transactions. Just be careful and make sure you completely trust who you are sending the money to.

 

[krx]

Good to know, thank you.

But other than that, paypal doesn't regulate using gift pay for transactions?

 

[FPForum]

Good to know, thank you.

But other than that, paypal doesn't regulate using gift pay for transactions?

I haven't heard of anyone having problems using that method. You could also look into PayPal Mass Pay. This is what some aftermarket places use. It charges something like $1 to sender and no fees to the receiver. It also is a way you can send multiple payments by uploading one file.. I think that might be what is recommended for business transactions.

 

[TERADOMAIN]

Yes agree with @FPForum . Paypal Gift money can not be charged back. I recommend never send to anyone for your First Transaction or High Ticket Price. Anything can happen to anyone. No one knows. So always be extra careful before sending anyone Money as Gift in Paypal.

 

[Branded Domains]

Paypal gift payments cannot be charged back. That means, if you pay someone using this method and they scam you, there won't be anything you can do to get the money back. Some people use it when sending money to friends or family since there are no fee's taken out on the receivers end and some people use it for domain transactions. Just be careful and make sure you completely trust who you are sending the money to.

Thanks I thought of sending as a gift to one of the Domainer...Thanks for bringing this point.

 

[alcy]

a lot of <$10 domain sales on np
it sure is nice not to get nailed with 60cent fee on those.
nicer if buyer pays an extra 2-5cents to save seller 60 cents.

at least I do that for sellers.

still I do not request this or ask of my buyers.. cause even for 5cents, many still complain its not as per NP rules to pay fee for buyer.

oh well.. what can I say.

 

[DU]

4.1 Receiving Personal Payments. If you are selling goods or services, you may not ask the buyer to send you a Personal Payment for the purchase. If you do so, PayPal may remove your ability to accept Personal Payments.

If you do considerable volume (i.e. taxable) then you are also bypassing IRS reporting. If someone *chooses* to send it that way that's acceptable.

 

[Recons.Com]

I have often paid as "gift" here on NP, if the seller is trustworthy and has good reputation. Haven't had issues so far. Don't mind saving few dollars for others, although it is not guarantee ) I do nice things until the first burn ))