I've had an increasing number of people lately asking that I pay them for goods or services as a "gift" through Paypal in order to avoid the fees. I don't know if Paypal monitors this sort of thing or not but it's not worth the risk to me so I just throw in an extra few bucks (per hundred sent) to cover the fee. My thought is that if you are receiving multiple payments from people all over the country as "gifts" paypal is eventually gonna catch on that you are selling stuff and hold someone accountable. All I know is that I'm not gonna get caught up in the inevitable crackdown that's coming once Paypal puts a stop to this practice, and they will eventually.