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Paypal "Gift" and fee's? Help

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First post, by brostenen

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I have been looking all over paypal and googling, and they say it is just straight forward.
It's the differences on paypal standard transfer (were you use the email) and gift transfer.

What is the main differences between the one were you use an email adress to transfer money to the reciever,
and this gift thing? What are the drawbacks, and what are the pro's on these things?
I really need a simplified version on this, as sites like paypal are a jungle for me, not quite the easiest to navigate.

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Reply 1 of 26, by Dominus

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with a gift there is no fee for the receiver AFAIU
(that's why they ask you to honor that difference between gifting and paying for something)

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Reply 2 of 26, by bjt

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Both gift and purchase require the recipient's email address.
Gifts have no or reduced fees in some cases. E.g. gifts from PayPal balance in same currency carry no fees for either buyer or seller.
There's no PayPal buyer or seller protection for gifts.

Reply 3 of 26, by brostenen

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Dominus wrote:

with a gift there is no fee for the receiver AFAIU
(that's why they ask you to honor that difference between gifting and paying for something)

AFAIU?

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 4 of 26, by brostenen

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bjt wrote:

Both gift and purchase require the recipient's email address.
Gifts have no or reduced fees in some cases. E.g. gifts from PayPal balance in same currency carry no fees for either buyer or seller.
There's no PayPal buyer or seller protection for gifts.

Is gift a thing were I have to use the money within a specific date or can I just let them stay for a purchase in the future. Or transfer them directly to my bank account for Xmas gifts or anything else?

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 5 of 26, by Dominus

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brostenen wrote:
Dominus wrote:

with a gift there is no fee for the receiver AFAIU
(that's why they ask you to honor that difference between gifting and paying for something)

AFAIU?

http://lmgtfy.com/?q=AFAIU

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Reply 6 of 26, by keropi

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Think of paypal like a "online bank" , people send you money and they stay there for as long as you want. You use them how you like, you can buy other things with your paypal balance or transfer said balance to your real bank.
Paypal doesn't care even you have money stored in them for a decade, it's better for them 🤣

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Reply 7 of 26, by brostenen

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Dominus wrote:
brostenen wrote:
Dominus wrote:

with a gift there is no fee for the receiver AFAIU
(that's why they ask you to honor that difference between gifting and paying for something)

AFAIU?

http://lmgtfy.com/?q=AFAIU

Thanks. This just proves that I am too old. All those shortening internet slang is something I don't know anything about at all. I am after all 39 years old. Even afaik is something I do not know what is. 🤣

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 8 of 26, by brostenen

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keropi wrote:

Think of paypal like a "online bank" , people send you money and they stay there for as long as you want. You use them how you like, you can buy other things with your paypal balance or transfer said balance to your real bank.
Paypal doesn't care even you have money stored in them for a decade, it's better for them 🤣

So. It does not matter whether it is normal transfer or gift?

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 9 of 26, by boxpressed

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Some sellers want to be paid by the "gift" method. This is because they will not incur a ~3% fee for doing business with Paypal. It also means that the buyer takes all of the risk. If the buyer pays as a gift, a fraudulent seller doesn't have to ship anything. As a buyer, you must be able to trust the seller who wants payment as a gift. Paypal cannot force the seller to ship an item by removing funds from his/her account. The buyer has some protection if the seller accepts a "normal" payment (not a "gift").

Last edited by boxpressed on 2015-11-09, 14:21. Edited 1 time in total.

Reply 10 of 26, by Dominus

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brostenen wrote:

Thanks. This just proves that I am too old. All those shortening internet slang is something I don't know anything about at all. I am after all 39 years old. Even afaik is something I do not know what is. 🤣

it's quite easy. AFAI - as far as I... and then you can guess the rest. It's been around even before the net but has seen of course much more use since then 😀
(I'm 39 as well, btw)

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Reply 11 of 26, by brostenen

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Can you link to a (possible) fee calculator on PayPal if they have flexible fee?
I seem to read from their FAQ that they have different fee's yet their website is not that transparent.
Wich drives me nuts...

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 12 of 26, by brostenen

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Dominus wrote:
brostenen wrote:

Thanks. This just proves that I am too old. All those shortening internet slang is something I don't know anything about at all. I am after all 39 years old. Even afaik is something I do not know what is. 🤣

it's quite easy. AFAI - as far as I... and then you can guess the rest. It's been around even before the net but has seen of course much more use since then 😀
(I'm 39 as well, btw)

Only first seen it in the last couple of years though 🤣
Must be an English cultural thing and not Scandinavian thing.

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 13 of 26, by boxpressed

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I believe it is still 2.9% unless something has changed over the last year. All you need to do is "Send an invoice" to the buyer's registered email address.

Reply 14 of 26, by brostenen

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boxpressed wrote:

I believe it is still 2.9% unless something has changed over the last year. All you need to do is "Send an invoice" to the buyer's registered email address.

Invoice? Huhh....?
So gift is were you transfer from a credit card to the receiver, using an email?

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 15 of 26, by boxpressed

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Yes, the buyer will select "Make a payment," then select "gift" or "for goods/services" (or something like that).

The buyer will enter the seller's registered email address.

The seller receives the payment minus 2.9%, unless the money was sent as a gift.

The seller can also initiate the transaction by sending an invoice via Paypal ("Request a payment" option).

Reply 16 of 26, by brostenen

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boxpressed wrote:
Yes, the buyer will select "Make a payment," then select "gift" or "for goods/services" (or something like that). […]
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Yes, the buyer will select "Make a payment," then select "gift" or "for goods/services" (or something like that).

The buyer will enter the seller's registered email address.

The seller receives the payment minus 2.9%, unless the money was sent as a gift.

The seller can also initiate the transaction by sending an invoice via Paypal ("Request a payment" option).

Invoice seems like an over kill then. As I will only ship when payment has arrived.

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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Reply 17 of 26, by boxpressed

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The invoice always precedes payment.

Some sellers like to send an invoice to let the buyer know the exact price and that they are ready to receive payment. As a buyer, I like having an official invoice that states exactly what I will be receiving and how much it costs. Other buyers are less formal. It all depends on how well you know the seller.

If you send an invoice, you cannot select the "gift" option. Also, Paypal cracks down on sellers who use the "gift" option too often and are obviously using it to conduct business.

Reply 18 of 26, by PeterLI

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How the seller funds the transaction depends. Some people use their bank account, other people use their credit card and some use both. I use both. Whenever I can use my credit card through PayPal I will: points or cash back on the credit card transaction.

I typically only sell through PayPal for family / friends to avoid buyer fraud / fees. The issue with cheap items for example in the US is that you cannot send items with Priority Mail to get tracking: simply too expensive.

On eBay you always use regular PayPal and need to make sure you mail everything with a signature delivery method. This covers the buyer fraud risk ("Item not received"). Obviously they can still complain about "item not as described" but since they would have to pay return shipping that rarely happens (when you describe the item well).

Also: when you first start out with eBay / PayPal they may on hold on to your funds until 21 days have passed to make sure you are not a fraudulent seller.

Reply 19 of 26, by brostenen

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Thanks all.... Really helpfully info from all. 😀
One last thing. If I want to buy on a site like Amibay, and the sales add say "PayPal + pp-fee".
How exactly does that mean? Do I just transfer to the seller and then PayPal will charge me automatically?
Or is the process a different kind, regarding were PayPal will charge it's fee?

Don't eat stuff off a 15 year old never cleaned cpu cooler.
Those cakes make you sick....

My blog: http://to9xct.blogspot.dk
My YouTube: https://www.youtube.com/user/brostenen

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