Gift Payments and Seller Fee Etiquette

[Corona]

Here's the exact quotes from Paypal's ToS.

On fees:

4.6 no Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.

On paying for goods as gifts:

4.1 Receiving Personal Payments. If you are selling goods or services, you may not ask the buyer to send you a Personal Payment for the purchase. If you do so, PayPal may remove your ability to accept Personal Payments.

There is no rule against factoring the fees into the cost of the item as long as you don't outright say that's what you're doing.

If someone asks me to pay as a gift, I remind them of Paypal's ToS in a "I don't want you to get in trouble" kind of way and offer to pay for the item as a good. Never had anyone get mad at me and if they do then that would be a red flag not to give them money I can't get back!

Generally I go by the rule that if I'm receiving a tangible item like a pony or plush, it's a good. If I'm receiving an intangible item like digital art, it's a service. I use this in selling too.