If you pay using the gift option, you are not protected by the protection plan and can't get a refund if the merchandise does not arrive.

If a buyer wants the convenience of not having to write a check and put a stamp on the envelope, I see nothing wrong with paying a small surcharge for using PayPal. If a seller - particularly in a hobby where profit is not necessarily a motivating factor to sell - wants to make sure he or she does not lose money on every transaction, I see nothing wrong with adding a surcharge. After all, the seller could just insist on checks and make everyone wait for their shipments while payment clears.

I never require any buyer to use the gift option because I want them to have the protection PayPal offers. Likewise, though, in recent years I have gotten away from imposing a surcharge.