Post edited 9:16 am – January 13, 2012 by PR3DA

So, I wasn't quite sure where to ask this…so I thought this might be the best area of the forums.

When dealing with payment via Paypal, I've heard a lot of sellers ask for payment to be sent in the 'Personal' section as a 'gift' or 'money owed'.

From what I gather, this means that less of a cut is taken from the actual transaction and that the seller isn't charged any fees and the buyer is the one that takes that. That is understandable.

What I am wondering is: If there were ever a problem with not receiving a product from either a bad seller or if that a package was lost in the mail, would Paypal be as willing to honor the recovery of funds spent by the buyer if it was designated as 'money owed' or as a 'gift'?

Is there a safer way of using Paypal? If I chose to take more of the fees incurred by actually stating what the transaction really was…would that offer more protection against fraud or losing a package in the mail?

I'm on another Cars forum (that probably should remain nameless) and I'm in negotiation with a new seller who has had no previous history there. So no feedback to gauge the integrity of either. And I just started wondering about all the inherent risk. 

I suppose I could read all that fine print on Paypal but then thought many of you here probably have had enough experience that there might be a short answer. Besides, PP probably wouldn't have any information on when you state a transaction is one thing when it is really something else.

I hope my query isn't inappropriate here, if so please let me know if I'm not honoring the forum guidelines in any way.

Post edited 12:06 pm – January 13, 2012 by PR3DA

Great advice, thank you!

I have very little experience in PP. 

When you say have them invoice me, is that done through PP itself?

This seller would send me an invoice in PP that afterwards I would pay?

That way they have a legitimate record of an official transaction in case of situations of theft or loss, of which I could contest for reimbursement?

Are the fees that much higher if it is a transaction like this?