I guess I understand a seller's reason for requesting payment via "PayPal gift" -- if you represent the payment as a gift instead of payment for goods or services, the seller doesn't have to pay fees on the transaction, right? But isn't that a terrible idea for the buyer? What if the seller never sends the item? The buyer wants his money back...but now the seller's ignoring his E-mails. How is the buyer going to file a complaint with PayPal? I'd assume if you tried to invoke Purchase Protection on a transaction you told PayPal was a gift, they'd laugh in your face. I'm sure most of the sellers who insist on "PayPal gift" payment are just trying to "stick it to The Man" a bit and have no intention of cheating the buyer. But...if I was a dishonest seller who wanted to take a bunch of money from multiple buyers and never send them anything in return, I'd insist they pay me via "PayPal gift." Either way, I'd never knowingly give up the only protection I had when buying something from a stranger over the Internet.