Receiving Paypal as payment from family/friends using a Credit Card

[paltak]

Hi folks,

I have a deal with another member. This is not a case of buying the seller/buyer question. We both have a couple of references on here, been communicating for awhile and are comfortable with the deal. I'm the seller and I'm in the US and he's in Australia.

He offered to pay me via Paypal as payment from family/friends ("gift") using his Credit Card (perfectly reasonable IMO). I've only used Paypal for selling/buying small purchases, e.g., straps, etc.

Because this is my first Int'l deal and first big ticket Paypal transaction. For the more seasoned members, is there any possible downside with the proposed form of payment?

Again, this is not a case vetting out the buyer/seller. Would love to hear your input/experience related to this subject. TIA!

[onefastman]

I wouldn't do it being international.

[Dishpro01]

With PayPal you better have total trust with your buyer/seller. You will be at pp mercy of something goes wrong.

[locutus49]

If you use the gift option you give the protections offered though sale/services, which is why they charge a fee.

[bdex75]

Don't know how the international issue plays in to it, I have family overseas in the military. But do know that the fee that you pay is for protection. And without paying it on the f/f deal you don't have that protection. But if you really trust the buyer, go ahead.


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[AK797]

Only use gift if you totally trust the buyer as you have no recourse.

[HL65]

I wouldn't do it but if you feel comfortable go for it.

[Wesley Crusher]

If anything, this is an advantage for you. Since the payment would be considered a gift, if anything was wrong with the watch, it got lost in the mail etc..., there is nothing that paypal would do for him. Using the gift option = zero protection for the buyer.

[BNA/LION]

risky business...

[Baco Noir]

I'd stick with wire transfer.

[MonBK]

Originally Posted by Wesley Crusher

If anything, this is an advantage for you. Since the payment would be considered a gift, if anything was wrong with the watch, it got lost in the mail etc..., there is nothing that paypal would do for him. Using the gift option = zero protection for the buyer.

I agree with Wes.

It's not you that have to be worried but the buyer.

If this deal is proposed by the buyer I would go ahead and do it.

[paltak]

Originally Posted by locutus49

If you use the gift option you give the protections offered though sale/services, which is why they charge a fee.

Thank you, John. It is my understanding as well that the sender has limited or no recourse.

Originally Posted by HL65

I wouldn't do it but if you feel comfortable go for it.

Thank you, Ken. I appreciate the feedback.

Originally Posted by Wesley Crusher

If anything, this is an advantage for you. Since the payment would be considered a gift, if anything was wrong with the watch, it got lost in the mail etc..., there is nothing that paypal would do for him. Using the gift option = zero protection for the buyer.

My thoughts as well. Not there's anything wrong with the watch, or I wouldn't do everything possible to help resolve any shipping issues.

Originally Posted by Baco Noir

I'd stick with wire transfer.

This would've been my preference as well, but sometimes a credit card may be the available option to the buyer :)

Originally Posted by MonBK

I agree with Wes.

It's not you that have to be worried but the buyer.

If this deal is proposed by the buyer I would go ahead and do it.

Yes, the buyer's proposed form of payment. Thank you, Mon.

[paltak]

Originally Posted by AK797

Only use gift if you totally trust the buyer as you have no recourse.

Some expressed concerns for me as the seller, but as I understand it, the risk is on the buyer by using family/friends or gift as there is no recourse for him, no?

If I withdraw the Paypal payment, the funds clear my bank account, I withdraw the cash from my bank account, and then ship the watch -- I'm not so sure where the risk could be, again I'm not experienced with someone uses a credit to send a Paypal gift.

[Baco Noir]

I am not sure but for a large 'gift' PayPal may put a short hold on the funds but you are safe once you withdrawal the money.

[T. Ferguson]

Originally Posted by Baco Noir

I am not sure but for a large 'gift' PayPal may put a short hold on the funds but you are safe once you withdrawal the money.

I'm also not sure but I'd think the hold would be more likely on a commercial transaction than a gift, since they are offering protection they would perhaps hold onto the money for a period to cover part of their risk, like the package not being received by the buyer. Especially on an international shipment.

[paltak]

I reached out to Paypal and received confirmation that gift could not be reversed unless the recipient initiates it. Thanks.

[Baco Noir]

Originally Posted by paltak

I reached out to Paypal and received confirmation that gift could not be reversed unless the recipient initiates it. Thanks.

Smart. Are there any limits to the amount one can receive as a gift? Seems like paypal would want to control this as it bypasses their % cut.

[robisan]

You only do this if you trust the other party 100%. If they do a chargeback on their CC, you're done.

[Chelseafan]

It will be fine. If in doubt call them and ask your question.

[paltak]

Originally Posted by robisan

You only do this if you trust the other party 100%. If they do a chargeback on their CC, you're done.

Not true as per Paypal rules on gifts.

[paltak]

Originally Posted by Baco Noir

Smart. Are there any limits to the amount one can receive as a gift? Seems like paypal would want to control this as it bypasses their % cut.

Up to 10K usd.

[NKflyer]

As others have already mentioned, there is no risk to the seller in receiving the "gift" payment. In fact, it can actually be better than receiving an international wire, as sometimes the intermediary institutions charge a fee (deducted from the wire proceeds) for handling the wire, as well as your bank probably charges a fee to receive it.

Also note that if the buyer funds the "gift" payment with a credit card, he/she will be charged the 2.9% fee on top of the gift amount.

[Grissom]

The only serious risk, as I see it, associated with receiving a paypal "gift" from someone using a credit card would be if the credit card were stolen, or if the transaction were to be reported to the card issuer as having been fraudulent. In that case, paypal would initiate a chargeback, and whether or not they were able to grab any money from your bank account, you would be liable to pay them back, and subject to collection and or litigation, to effect that end. If you are certain everything is on the up and up, then I don't see any other risk. As an aside, PayPal monitors those types of transactions, and if they feel that they are being used to circumvent fees, they can freeze ones account and funds, and/or close your account....so use this carefully, if you value/need an active PayPal account. Best of luck....

[experimentjon]

Originally Posted by NKflyer

Also note that if the buyer funds the "gift" payment with a credit card, he/she will be charged the 2.9% fee on top of the gift amount.

This is why it makes me wonder why he would use gift with CC. The primary reason anyone uses gift is to avoid all fees by sending through your bank account. At that point, he might as well just use "goods and services" and just add in the PP fee on top. So while I don't know the buyer, PP gift funded through CC raises a red flag for me.

After seeing this on WUS a while back, I do not accept PP gift on large purchases anymore. I, too, had formerly believed it to be safer...but this made me think twice.
http://forums.watchuseek.com/f2/bewa...rs-784828.html

[paltak]

Originally Posted by Grissom

The only serious risk, as I see it, associated with receiving a paypal "gift" from someone using a credit card would be if the credit card were stolen, or if the transaction were to be reported to the card issuer as having been fraudulent. In that case, paypal would initiate a chargeback, and whether or not they were able to grab any money from your bank account, you would be liable to pay them back, and subject to collection and or litigation, to effect that end. If you are certain everything is on the up and up, then I don't see any other risk. As an aside, PayPal monitors those types of transactions, and if they feel that they are being used to circumvent fees, they can freeze ones account and funds, and/or close your account....so use this carefully, if you value/need an active PayPal account. Best of luck....

Very insightful and sound advice. I had not thought of that. AGAIN, I have no reasons to believe nor implying that the buyer is anything but legit. Just covering all the basis.

[paltak]

Originally Posted by experimentjon

This is why it makes me wonder why he would use gift with CC. The primary reason anyone uses gift is to avoid all fees by sending through your bank account. At that point, he might as well just use "goods and services" and just add in the PP fee on top. So while I don't know the buyer, PP gift funded through CC raises a red flag for me.

After seeing this on WUS a while back, I do not accept PP gift on large purchases anymore. I, too, had formerly believed it to be safer...but this made me think twice.
http://forums.watchuseek.com/f2/bewa...rs-784828.html

Thanks for sharing this, great information to know!

[jhcam8]

Originally Posted by experimentjon

This is why it makes me wonder why he would use gift with CC. The primary reason anyone uses gift is to avoid all fees by sending through your bank account. At that point, he might as well just use "goods and services" and just add in the PP fee on top. So while I don't know the buyer, PP gift funded through CC raises a red flag for me.

After seeing this on WUS a while back, I do not accept PP gift on large purchases anymore. I, too, had formerly believed it to be safer...but this made me think twice.
http://forums.watchuseek.com/f2/bewa...rs-784828.html

Now that is good info. Thanks.

[GradyPhilpott]

Originally Posted by experimentjon

http://forums.watchuseek.com/f2/bewa...rs-784828.html

This is all I'd need to know to not do the deal this way.