Heads up for those sending Paypal gifts as payments...

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5.00 star(s)
Apr 19, 2008
Abingdon VA
I know a lot of people here do this...just saw this over on BOC Forums and thought I would pass it on:


BEWARE of sending gifts

Just got kicked of paypal for to many GIFT payments. (6 to be exact)

Seems like if they do not get their cut then they dont want you !!

We have reviewed your PayPal Account, and due to the excessive gift payments received and risk involved, we would like to begin parting ways in a manner that is least disruptive to your business.

Please call PayPal Customer Service at 1-888-***-xxxx to facilitate the
disbursement of any funds remaining in your PayPal account.

Funds disbursement can be handled in one of two ways:

Your remaining account balance can be used to provide refunds to your
buyers (if applicable).
Your remaining account balance will be held in your PayPal account for 180
days from the date your account was limited. After 180 days, you will be
notified via email with information on how to receive your remaining funds.
If you choose to provide refunds to your customers, please log in to your
account and contact us with a list of transaction IDs for the buyers that
you would like to have refunded for you.

We thank you for your prompt attention to this matter.

PayPal Account Review Department
PayPal, an eBay Company
I have told people here to send me the money by regular Paypal, and they still send it "gifted". Also, when they want the money for their sales "gifted", I try to pay with credit card funds....., that way I pay the fees. However, they have noted on their signature "my Paypal do not accept credit cards payments". IMHO, they (Paypal) is providing a service and they should get paid for it.
yeah...just to be clear, that was not me that got kicked out of paypal...lol...I just cut and pasted the first post of the thread from BOC, click on that link to read the full drama...just thought it might save someone here a headache and potential problem so passed the info along.
The only way I send payment as a gift is if the seller requests it. Thanks for the info.
Another good reason to regulate selling here a bit more. Deals are often made, only to find out once you confirm that PP is not accepted or a gift payment is required. Short of asking those questions for each potential trade, you never know until the deal is done.

Prices, shipping amounts, discounts and payment terms need to be clear up front.
The only way I send payment as a gift is if the seller requests it. Thanks for the info.

See, I believe you will still get in trouble for it, as you are sendig money for goods and marking it as a "gift". Believe me, I hope it doesn't create a problem for any of us, but I'll try myself to stay away from the "gifted" purchases as much as I can.
I gotta say on this, Paypal is a business. They are offering a service for a price. Trying to get around that price and still using the service will no doubt be frowned upon, with good reason.
I imagine if someone sends you a gift you can refund it and make them resend and be in the clear on it...I think that is what I am going to do...I have not had anyone send me anything as a gift yet, but I really don't like the idea of it...don't need the worry for a few bucks...I depend on my ebay and paypal accounts to get my Bradshaw stuff and I don't need any problems lol.
Thanks for the info. Though truthfully, this shouldn't catch anyone by surprise. I believe Paypal did spell this out on their site. Another member here put up a thread around early November about someone having their account restricted from using the "gift" option too often.
A heads up, you can't refund a gift in whole or part like you do with a purchase. Of course it can be gifted back but that really just componds the problem.
for what it's worth , here's a copy of a post (that includes a direct cut and paste of a portion of the pay pal tos) i made a couple months ago when a member asked about payments sent as gifts :

lep is very correct....no protection offered....

personally i will ACCEPT gift payments , but i will NEVER ask for one since it is a blatant violation of pay pal's TOS to do so :

* 4.2 Receiving Payments for Commercial Transactions and Personal Transactions.

1. Section 4.2 of the user agreement will read as follows:

"4.2 Receiving Payments for Commercial Transactions and Personal Transactions. a. Fees depend on whether you are making a commercial transaction or a personal transaction. A commercial transaction involves buying and selling goods or services, and payments received when you send a "request money” using PayPal. A personal transaction involves sending money to and receiving money from friends and family without making a purchase.

b. If you are selling goods or services, you may not ask the buyer to send you a personal payment for the purchase. If you do so, PayPal may remove your ability to accept personal payments.”