If I may offer a little clarification here...
There is a functional difference (beyond the fee issue) between sending money for "goods or services" and sending it to "family or friends." (The word "gift" does not actually appear anywhere in the process.)
Earmarking the payment for "goods or services
" does deduct a percentage of the funds received by the recipient (who's considered to be the seller in the transaction), but in addition, and more importantly, the sender is also covered by PayPal Buyer Protection
. Details can be found here:https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&fli=true&content_ID=security/buyer_protection
Earmarking the payment for "family or friends
" does not deduct anything from the payment (as long as it's funded by either your PayPal balance or your bank account), so the recipient receives full value, but at the same time, the sender has no buyer protection
if things go sour after that.
So you're free to use the "family or friends" however you choose, but note that the recipient should really, genuinely be a friend, because you're trusting them to do the right thing by you after that.