Paypal " Gift "

[Tenkaykev]

Hi folks,
I'm currently selling a Brommie on our local Gumtree. Had an enquiry from someone who says they would pay by Paypal as a " Gift " and wondered how secure this is as I've not used that service before. You read about so many scams that I'm a tad apprehensive about payment.

 

[Dadam]

It used to be called a "gift" but last time I used it, it was "send money to friends or family". It's secure in the sense that you're not giving bank details away and the money should get to the right account if you give them the right email address, but unlike with a purchase there is zero payment protection. It's basically like posting an envelope of cash to someone. As you're the seller and if you make sure you have the money in your account before giving them the bike there should be little risk to you. They can't do the common chargeback scam and say they didn't receive the goods because as far as Paypal is concerned, there were no goods, the nice person just gave you some money.

 

[Drago]

Misrepresenting the nature of the transaction in order to avoid fees is, technically, fraudulent. I'd ask for payment in portraits when they arrive to collect the bike.

 

[Ming the Merciless]

I'd ask for payment in portraits when they arrive to collect the bike.

Plus make sure it looks like the King, not those dodgy ones that make him look like a Queen.

 

[Slick]

To be fair, I pay friends and family fairly regularly and never had an issue with it.

 

[PaulSB]

As @Drago says the gift payment, now Friends and Family or similar, is a way to dodge paying PayPal fees. When selling privately I always use it. It's secure but the buyer/seller protections are removed. When buying I do as the seller requires which is almost 100% fee based.

I'm Treasurer to a small charity. I don't know precisely what the PayPal fees are but we receive a large number of £20 payments. The fee for these is £0.48, which 2.4%. A small amount to pay for the security and simplicity PayPal offers. If you're concerned I'd suggest using the fee option. Based on my experience that will cost +/-£2.50 for every £100. A small price for peace of mind.

 

[PeteXXX]

I've used Gift several times, often to & from members of CC.
Never had any problems but, of course, we're all honest and trustworthy folk here, aren't we!

 

[roubaixtuesday]

we're all honest and trustworthy folk here, aren't we!

I have an excellent little used bridge for sale if you're interested?

 

[Kingfisher101]

With Gumtree and FB marketplace I would only accept cash on collection and no delivery or messing about.
OP, just tell them its cash on collection, then there's very little chance of you getting scammed.

 

[vickster]

With Gumtree and FB marketplace I would only accept cash on collection and no delivery or messing about.
OP, just tell them its cash on collection, then there's very little chance of you getting scammed.

Other than with fake cash, of which there is always plenty doing the rounds! I’d prefer a bank transfer in person at time of collection if the transaction felt even slightly off!

 

[T4tomo]

Hi folks,
I'm currently selling a Brommie on our local Gumtree. Had an enquiry from someone who says they would pay by Paypal as a " Gift " and wondered how secure this is as I've not used that service before. You read about so many scams that I'm a tad apprehensive about payment.

What that says to me is they are trying to protect you, as you can't be chargeback scammed with a gift payment, but they don't want t turn up on your door step with a wad of cash in case you knock them on the head and nick it and there isn't actually a bike to sell.

anyway you are now in possession of all relevant facts and can make your own decision.

 

[wafter]

In practical terms:

- A gift / "friends and family" payment saves the seller fees and loads the risk onto the buyer as Paypal offer no buyer protection.

- A "goods and services" payment adds fees at the seller's cost and affords the buyer "protection"; which is open to abuse as it opens the door to fraudulent claims that the goods didn't arrive - which usually results in Paypal siding with the buyer and issuing a refund.

If selling I won't accept "goods and services", if buying I'll do a gift if I think I can trust the seller. Assuming the buyer is going to pay as a gift using their mobile when they collect the bike, and you can confirm receipt of said payment before they leave I don't see a problem in principal.

One final note - I actually paid for half my Brompton using this method and PP held up the payment for some reason (perhaps because it looked "suspicious". The seller was good enough to trust me to leave with the bike having just left the cash portion on the understanding that the payment would clear within a few days.. which it did.

All in all (counterfeits notwithstanding) cash would be easier, however this might not be a possibility for the buyer depending on the situation with their account.

 

[Electric_Andy]

I've always accepted bank transfer for larger sales, but I would accept a PayPal exchange if it comes through as fast as BACS (i.e in 30 seconds). But I always hold onto the goods until the money shows in my account. Getting cash is a real hassle, and a risk carrying it which is I think why people prefer a digital option. There's no password on an envelope full of cash

 

[Tenkaykev]

Thanks to you all for the input. I'm now familiarising myself with the PayPal interface.