Listing Discussion re: payment as gift

[Rhea]

Not sure if this is the correct place, but as it has to do with listing I thought I'd start here.

I'm seeing an increasing number of listing on DB which are requesting that payment only be sent as a gift. That means that the seller won't have to pay fees right? But also, I assume, means that nothing is expected in return making it hard to file a claim later if the item doesn't show up?

Can someone explain the advantages and disadvantages to this method?

 

[janlwf]

People (most Canadians) who ask for purchases to be marked *gift* are trying to avoid GST or HST (Taxes)depending on their Province). I'm a Canadian and will happily pay my taxes but only on the sale price, not an inflated "for insurance" price that many classifed, or ebay type sellers mark the purchase...

I don't think marking it a gift affects insurance or claiming if lost unless you are a registered business, but I never ask for items to be marked as a gift, unless it actually is

 

[NKOTB]

You are correct, sending payment as a gift avoids fees paid by the seller. Most people are individuals selling on DB, not businesses, so I suppose it's a drag to have to pay fees. I'm not sure how it works for one American selling to another American (perhaps someone from the US can chime in - I've noticed a lot of listings won't sell to anyone outside the US), but in the case of international (I'm also in Canada), the fee for the seller is around 4%. However, paying as a gift can incur fees for the buyer if in another country, the amount depending on whether or not you're paying by bank money transfer or credit card (higher). I don't know what the recourse is in terms of lost packages, etc. using the payment as gift.

 

[Lisa Loves Shiny]

I have paid and been paid for items as a "gift". But this leaves you no protection with paypal if an item is not as described. This is a transaction that should be done only with friends and people you trust.

 

[maplefemme]

Not sure if this is the correct place, but as it has to do with listing I thought I'd start here.

I'm seeing an increasing number of listing on DB which are requesting that payment only be sent as a gift. That means that the seller won't have to pay fees right? But also, I assume, means that nothing is expected in return making it hard to file a claim later if the item doesn't show up?

Can someone explain the advantages and disadvantages to this method?

I do know that writing "gift" on a customs form when it was actually a purchase is considered mail fraud by Canada Customs, they can choose to seize goods if they wish, you take the gamble...

 

[Rhea]

Thanks all!

To clarify, I wasn't talking about customs forms on items being posted, but about the actual paypal part of the transaction where the money is being sent as a gift.

 

[maplefemme]

Thanks all!

To clarify, I wasn't talking about customs forms on items being posted, but about the actual paypal part of the transaction where the money is being sent as a gift.

I know I just thought it was relevant to mention this, as janlwf was discussing some Canadians wanting items marked as "gift" to avoid paying taxes. If a seller is going to ask for a payment to be marked as a gift to avoid paying tax, some buyers in return may, and often do, ask likewise.
I purchased bedding sheets on eBay a couple of years ago from the US for $120. I never asked the seller to mark it as a gift on the customs sticker, I never knew she had done so. I got a call from a customs officer asking me to send proof of payment because they have seized my package. So I of coarse send them my Paypal invoice, none the wiser because in my mind it's all kosher.
Two weeks later my package arrives no problem, no taxes owing, which isn't uncommon. I see she's marked it as a gift. I emailed the seller and told them thanks but don't do that again as it delayed my package.
A month later I get a $97 bill from Canada Customs for taxes and other charges!
Until I changed address, every subsequent package that I had come through customs was opened by customs, my address was flagged.
It was a royal PITA and I never even asked for the seller to do it.

If you send funds as a gift and the same person you are sending that "gift" to sends you a package in the the mail with an item in it and it goes missing, then the Paypal "gift" has nothing to do with it. The "gift" sent to a person through Paypal is a one way transaction, it's a gift, even if it's actually not. Any subsequent package sent is not covered, the two transactions are separate entities, at least in the eyes of Paypal. I don't think you'll have much chance in convincing the post office that one has anything to do with the other either.
I know people people do this all the time, but be prepared that if you get caught, there's a price to pay.

 

[VRBeauty]

Apparently Paypal doesn't charge fees, or charges less, for a gift of funds. On my last DB transaction the seller asked that I note the payment as a gift. I didn't, because I prefer to be above-board in my dealings, but since the price seemed very reasonable and the seller was covering the postage, I padded my payment a bit to make up for the difference.

I know - that was kind of stupid on my part. Now, knowing that you give up some Paypal protection when you go that route (thanks, LisaRN and maplefemme) it fits into a bigger picture that I'm getting of that whole transaction, and it isn't pretty. I'm not going into detail here because I've written the whole thing off to experience AND there were enough mistakes made on my part that I learned a lot! But for the purposes of this discussion, I will say that if someone asks for this in the future I'll see it as a yellow flag and proceed with caution.

 

[MichelleCarmen]

Thanks all!

To clarify, I wasn't talking about customs forms on items being posted, but about the actual paypal part of the transaction where the money is being sent as a gift.

You don't have to pay the pay pal fees if it's a gift. I don't think it's worth saving a few percentage points to give up buyer/seller protection by doing so, but that is just me!

 

[packrat]

I had no clue there wasn't any protection if it was paid as gift. The times I've bought from there it's been requested to be sent that way and that's how I've done it, and that's how I've always listed things there as well. I took it off mine.

 

[maplefemme]

I had no clue there wasn't any protection if it was paid as gift. The times I've bought from there it's been requested to be sent that way and that's how I've done it, and that's how I've always listed things there as well. I took it off mine.

Yes, I would just hate to see someone get into trouble because they don't know this, and/or loose money or jewelry in a transaction they aren't protected in.

 

[Rhea]

Thanks all! It's been in a fair few postings recently by several people so was curious. Thanks for clearing everything up!