# Paypal question



## Stu-TDi (Nov 16, 2011)

Hi all! 

Just a quick question folks!

What is the difference in the payment methods on paypal? like a gift payment, or a goods payment? 

thanks in advance :thumb: :speechles


ps. may not be in the right section so feel free to move to where appropriate mods!


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## kempe (Jan 9, 2011)

gift you dont pay fees but your not covered if something happens


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## DMH-01 (Mar 29, 2011)

Receiving a personal payment (e.g. a gift from family) is free if the sender uses their PayPal balance or their bank as a funding source. If they use a credit or debit card there will be a small fee. The sender can decide to pay this or pass it on to you. 

If you are receiving a business payment (e.g. when selling items on eBay) then you will be charged a fee. The basic rate for receiving payments is 3.4% + 20p.


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## LindenH (Oct 25, 2011)

kempe said:


> gift you dont pay fees but your not covered if something happens


.... not quite.

If paying 'gift' or 'money-owed' from your Paypal balance or bank account, no fees will be payable by you or the recipient of the funds.

If paying 'gift' or 'money-owed' using a credit card, fees are applicable but you will have the option of paying the fee. The recipient of the funds will not have the fee to pay.

You have no Paypal protection when paying by this method.... mainly because Paypal understand that your payment is a gift/money owed and not for goods.

If you are paying for goods by this method so that the seller can avoid fees, unless you have complete trust/faith in the person to whom you are sending payment, I would recommend that you pay as Paypal 'goods' and cover the cost of the fees that the seller will incur. That way, you have Paypal protection if things go wrong and neither you nor the seller will be on the 'high number of gift transactions' list that Paypal refer to from time-to-time :thumb:


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## Stu-TDi (Nov 16, 2011)

Ahh understood now :thumb: Thanks Chaps!


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