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I believe when you pay with gift then no one pays the fee. Paypal has changed how they do this several times. I know I cannot give money even with a cash balance in my paypal account without the receiver getting a fee unless I use the gift option. I tried several different variations of it a while ago with several people and none could avoid giving me the fee without using the gift option. It did not matter if they were using a personal checking account, balance on their paypal, etc...
As for the policy statement I am not sure, but I called and talked to PP when somebody corrected me on it. I used to ask people to use the optio, but not anymore. Many times when I sell credits people will automatically use the gift option. That is how I first found out about it is people started using it. I just don't ask them to use it.
Back in the glory days when PBS didn't have a 50 credit limit and credits were selling for more I sold thousands of credits, so I was able to figure out how PP worked. Like I said, it has changed over time and people don;'t get much of a warning when it changes.