Why is it so many people on here (especially in the BST) seem to think it is their right to be able to recieve the money 'as a gift' and so skip the Paypal fees? The way I look at it Paypal has a right to make money and getting around their charges is unethical. I have been intrigued by the amount of people I have paid that have complained that when I have done so i have marked it as a service or product (when they were) rather than a gift.
Because there fees are BS and they take to much for some hard worked money I try not to use pp becauseb of there poplicy and crap protection against honest people ...
I think many people request the money are a gift because it cannot be charged back (you can't open a paypal dispute for a gift). So, if you are selling something and someone pays you as a gift many perceive it as more secure than receiving the money as a payment (you can open a dispute for a payment). The fees are another huge factor. Many people are receiving small payments and the fixed + variable fee can add up to a huge percentage of the payment. Lets say you are selling a service for $2. The paypal fees are $0.30 fixed and 2.90% or $0.06. So, the total fees are $0.36 or 18% of the payment. On bigger amount many people the 2.90% can add up as well. So, while paypal and banks in general are entitled to earn revenue for their service I think many people just find these fees too high.
Surely Paypal monitor those paying 'gifts' and would act if they felt people were doing it too much and therefore compromise their business model?
Paypal still makes money on the gifts but the fees are lower. I think one of the reasons that they have to charge high fees is because of chargebacks and disputes. So, if by sending a gift you reduce paypals liability then I think they are happy to make a lower fee otherwise they would increase the fee on gifts.
of course Paypal has the right to charge fee'S but some times if you pay low amounts they are pretty high so if you can skip them why not. It's just normal everybody is trying to cut costs these days
The only alternative is for service providers to increase their prices so as to compensate for Paypal fees. Suppose I charge 10$ for my services, but only 9$ in case you "gift" me by Paypal (Because of no Paypal fees). What would you do now?
I can honestly say i would pay $10 What I don't like is that I agree a fee and then pay, only to discover they aren't happy as I didn't 'gift it' and want to push up the agreed amount if I decline to do so. I am worried by the idea that gifting is the norm as I have concerns over how Paypal would view it. My paypal account is vital to me so any risking it is something I am reluctant to do