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Paypal Gift Function

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Hi guys,

Firstly, if moderators want to move this, or don't like it, then please move or remove as required :lol:

I get a lot of money each year from Paypal users, much of it through direct sales on this site. Whilst all payments through eBay using Paypal need to go through their merchandise/services system a fee applies (upto 3.9% for cross border transactions) because a lot of these are backed by credit cards (which charge Paypal) but there is a way to save fees for you and friends by using the Paypal gift option when buying things privately.

I don't recommend doing this for large amouts of money, or to people who are unknown to you and even with some friends money can be tricky. Gifts are not backed by Paypal clawback (the ability for buyers to get their money back from sellers - for what it's worth anyway!) and some have small fees applied (maximum 1%, usually much less, or even nothing) and can be made in any currency.

If you have a credit card Paypal account only and drain the account, you can't use this function. Paypal originally started it to keep the money in the system, because people were draining the accounts and frankly it costs paypal nothing to send money between their accounts, it only costs them if the money comes from a credit card in the first place.

If you have money in the account or have it attached to a bank account (like the direct debit system in the UK, similar ones abroad) then you can use the Paypal gift function anywhere in the world. Most people pay me this way and you can receive other currencies with it. If you trust your seller, or want to send money to friends, for gifts, personal payments etc, use it, it is a very good way of saving money for yourself as well, as mosy sellers build this into their costs (I know I charge more on eBay, I have to, plus my Paypal fees at the end of the year are in the thousands). Cross border transactions between certain countries are charged at tiny rates, I know that it costs me a few YEN to send YEN to Japan and Dollars upto 1%. UK to UK and Euro to Euro for all countries I have tried have been virtually fee free, if not completely fee free. I must point out again, Paypal does not protect you as a buyer using this method, so only use it if sure.

if you have money in your account or a bank account, then you can send money in the usual way, just look for this tab in the fields for payment:


By the way, when browsing eBay for items abroad you will often see the cost quoted in your local currency by the item (lets say it is $100, they will show, lets say £70 on ebay.co.uk). Don't believe this for a second. This is not the rate that Paypal will give you, theirs isn't as good as even the credit card companies (even Amex is better) but a 'market rate', but since eBay have made Paypal the defacto method of payment for their site, this trick (making you think items are cheaper) is quite devious.

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The german paypal site has no "gift option" and a login at paypal.com isn´t possible. :-(

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I use 'gift' a lot for transactions now, as it stops Paypal charging the recipient - however, as Paul's already said, don't EVER use it for someone you wouldn't be comfortable sending cash to, as there is no buyer protection (as far as Paypal's concerned you're sending a gift, not buying goods)

If the seller insists on $100 paypal 'gift' then by all means use the process to work out what the fee would be, but then send them $100 + fee as a standard paypal transaction;

If you go through the motions of sending a gift, at some point it will ask you who is paying the fees (if you're funding it with a credit card) - at this point it tells you how much the fees are.

Remember, paying with PP gift is no safer than sending cash or the dreaded 'Western Union'

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We didnt have that option in Australia until last year sometime I found it frustrating when for example a TC member was selling something and the listing said "Gift" I would contact them and they would say work out the % and pay it that way it was like pulling teeth does your head in working out the percentage rate time after time.

My wife sends me money fortnightly using the "Gift" option into my paypal account she does not get charged for this ,I have noticed at times when I have used it to buy something I have been charged a fee I still cannot figure it out .

I list items on several rc sites and when I sell something using the "Gift"option I say I have had dealings with several members (on this particular site) and can give you names of these people for a refference check or you can work out the % rate and pay that way.

I had a Nib Super Hornet for sale in my trades section last week payment as "Gift" only some random person contacted me within Australia and said I want you kit no problems I sent him an email supplied him with my paypal details and a list of trusted TC members I have traded with so he could get a refference, he sent an email back and said no he would not purchase the item this way as a "Gift" It was like hello are your EYES GLUED on didnt you read my listing it says Super Hornet for sale "Gift" only,so I said no problems have a nice day ,I then get an email saying if I list it on ebay with a BIN they will buy it and promise to pay the ebay fee's ,So I listed it sure enough they brought the kit I sent them the ebay fee price and lets just say I am still waiting not holding my breath ,feedback has not been left yet so I guess I do nothing (reminding him of his promise) or risk getting a negative .

Wow I wish I had thought of using ebay to sell something ,if I wanted the fee I would have used ebay but I wanted to avoid the whole fee thing that was why I listed in my trades section ...and yes he would not pay for it using paypal and work out the % rate.

I have also noticed that the exchange rate on ebay for items is way out usually ,I always take this into account when buying an item now and I am constantly reminded by my wife.Even online currency converters are not great they seem to always be out as well but not to the extreme that paypal is.

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paypal's forex can be a few days "behind"... so if the rate has changed a lot overnight (eg AUD dumping from 92c to 89c), it can be of benefit either way

just depends when you pay... dun forget if paypal charges your CC in a non-home ccy the bank can surchange 1.5-2.5% for exchange too

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I have never known UK banks to surcharge on the credit cards I use, in fact the rates on Visa are superb in my experience (close to middle rares), Amex not so good (but the perks are unbelievable) and Paypal the worse, but not by much against Amex.


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well our banks enjoy an oligopoly... the "Big 4" they make about $10b every half yr

most banks have always taken a cut on the forex anyways; but now they are required by law to detail exact fee charged.

Usually ranges form 1.5-2.5% for charging non-AUD amts; usually AMEX charges me less (PP bills them in USD).

Some cards even charge 2% for "cash advance" when there's customer's credit funds in that a/c :) even locally;

this was on a VISA thru ANZ that i kept for doing convenient cheque cashing over bank counter when i needed it.

(ie write cheque to myself, swap for cash at any branch without needing a pre-arranged Chq Cashing Authority)

in Oz AMEX charges the retailer approx 4% on fees; the main banks (VISA, Mastercard & Bankcard) do 2-3.5%.

So not all retailers accept AMEX anymore or some have resorted to charging a surcharge for AMEX too.

Is Diners still around?

Most annoyingly... after so many yrs of training subscribers to do online payments for utility bills,

some of the utilities & authorities have started charging VISA 2% & AMEX 4% surcharges too.

Online bookings for airlines direct via their own websites have always attracted CC surcharges.

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Yeah, but no one has better service than the upper Amexs, so many features etc. They can charge upto 7%, but this is only for small merchants, most bigger merchants pay ony 3.4 and less for the really big boys. Even M&S and J&L started to take them.

For a while surcharges weren't allowed, but some companies levy them now.

The truth is, I feel a bit sorry for credit cards in one respect. People have become very angry with them for making charges, which take money from the merchants, but the fact is, those merchants now have access to clients they would have never had access to before, because they can pay for larger items over time. Admittedly this system has been abused of late, but in principle it isn't a bad idea, properly managed.


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people who think CCs give them "free money" are stupid :) why bother blaming companies - they didn't make you spend it

twigged onto the nefarious banks' tactics pretty early on in the game... basically they'll approve up to

2x the holder's gross monthly wage knowing full well that anyone who maxxes out their card,

will never have the resources to be able to clear the card in full anytime soon

(hence revolving interest accrues etc etc)

AMEX here seems to be targetting the "professionals" by partnering with CPA accountants, AMA medicos etc

Probably is working as i read that "average spend" for AMEX is about $8k pa vs $2k for VISA a/cs.

New development in CCs locally is co-carding of AMEX with VISA/MC issued by banks,

giving out 2 cards attached to the same 1 account allowing holder to choose which to use.

(me suspects its so that EvilBank can charge merchants 4% vs 2.5% for same txn... or is that being too cynical)

T'is lucky i didn't really get into inventing 'new' banking products.

I did invent & help launch a few in my time... but kept the most evil ones to myself. :(

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Thank you loaded for writing down this information. Very valuable. We don't have the paypal GIFT option in here anymore.

You all have a great weekend! :D



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ya? you had a good look for it? tried a different country's site?

not that i've bothered keeping track where it is but everytime i've looked its in a different place

and sometimes i only see it when there's credit funds in that particular a/c

or its also likely PP wants to make more profit :P

i so hate paying ppl with cleared funds in a/c when fleaBay still charges fees for them to receive it

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