Omg just read this thread.
Forget i ever said anything
Im new to paypal,can someone explain what 'gifted' means please
In normal paypal transactions (most commonly used for ebay) the seller gets charged a fee for receiving the money from the buyer.
When you 'gift' the money - which involves signing into paypal and ticking the 'gift' box, paypal sends the money to the other person but doesn't charge them the fee, because you're telling paypal that its a present rather than a business transaction.
Problem with gift payments is, if you don't receieve your items, you can't claim the money back. The fee on normal transactions is sort of like buyer protection so if you don't get what you paid for, you can file a dispute and paypal will eventually take the sent payment from the seller and give it back to you, the buyer. Unless the seller has proof that the items have been posted.
Hope I've explained ok!