Haygal "Gift" loop hole closed

[ade06]

As an FYI, many of us have used the "gift" option when sending funds to people to avoid the recipient paying haygal's fees. It was a nice little loop hole to lower transaction costs. Well this practice as we know it appears to be over. When you now elect to send money via the "gift" option, at checkout haygal will give you the option to pay the recipient's fees or let the recipient pay the fees. For example if you want to send $30 to someone via gift and don't want them to pay haygal fees, the total $30 gift will become $31.17 to you. Or you can send $31.17 via gift (or noted as a purchase) and the recipient will pay the $1.17 transaction fee. Either way haygal will get their fee. I wonder how many millions of loss revenue it took for them to figure out that loophole.

[Brutus2600]

I think that it's been that way for awhile. For as far back as I can remember (at least the last 8 months) when sending money via gift option it asked if I wanted to pay the fees or let the recipient pay the fees.

I may be wrong though :confused:

[jitzy]

Didn't the sender always pay the fee and the only one that got no fee's was the recipient.

[Ogre]

I just sent money today and didnt get tagged. I think if you send it to someone that has a business email known my them it gets tagged.

[ade06]

Didn't the sender always pay the fee and the only one that got no fee's was the recipient.

I've never had to pay the fee when sending via gift before today?

[pektel]

Did you pay using a card or with your bank account?

[jitzy]

I've never had to pay the fee when sending via gift before today?

Are you sure about that? You may wanna go back and look cause I've never not paid the fee.

[ade06]

Did you pay using a card or with your bank account?

CC, but this transaction was no different then my prior gifts.

[pektel]

Huh, weird. I know it tries to get a fee from me when using a card. So I always just use my bank account.

[Emjaysmash]

I've never paid a fee.

[McSmokey]

I just did a transaction with no fee through gift. I know if I use a CC it charges me a fee but those are the only times I have had a fee.

[ade06]

I just did a transaction with no fee through gift. I know if I use a CC it charges me a fee but those are the only times I have had a fee.

Interesting. :confused:

[Ogre]

It sounds like a CC thing. Perhaps its PP way of recouping the CC fees.

[ade06]

It sounds like a CC thing. Perhaps its PP way of recouping the CC fees.

Next time I send money I'll send it from my bank account to see if I charged the fee.

[hotreds]

It sounds like a CC thing. Perhaps its PP way of recouping the CC fees.

I think that is the case.

[Ogre]

Next time I send money I'll send it from my bank account to see if I charged the fee.

I just did and was not charged.

[ade06]

Thanks for the clarification. You have to know the system to beat it.

[shvictor]

Are you sure about that? You may wanna go back and look cause I've never not paid the fee.

I've never paid either

[jitzy]

I think I stand corrected I just went and looked thru my PP and never got hit with fee's either

[Brutus2600]

Yeah, I always use a CC...so that might be the case.

[mscales]

I just received a payment last Friday for a Benchmade knife and had no fees. Hey, I just don't like Haygal becaus ethey are anti firearms. There is a new payment web site called GPAL (was GunPal) but they have had some probelms dispensing funds back to your bank. If you are doing small amounts give them a try.

[bvilchez]

If you use PP with a CC then it will hit you for fees too recover what they get hit for. If you use a bank account then no fees.

Be careful though. I know for a fact that if you have constant transactions via gift method within a certain time period PP will warn you and possibly shut your gift method down.

I know. My gift option is currently shut down because of the Cigar Caddy GB.

[icehog3]

If you use PP with a CC then it will hit you for fees too recover what they get hit for. If you use a bank account then no fees.



Exactly....and good point reference group buys using PP as well, Jay. :tu

[massphatness]

I use this service A LOT -- too much, in fact ...

I've never paid a fee when using the gift option provided I funded the transaction through:

1. my HeyGal balance
2. my bank account (checking or savings)

I ALWAYS get asked about paying the fees for the gift option if I fund througha credit card or the credit line I have linked to my HeyGal account.

I sent a payment yesterday as a gift. No fee.

[jitzy]

Also don't forget with the gift method if the deal ever goes bad then you have no way of recouping your money so unless you know the person your dealing with then you may wanna think of doing it the other way. Sometimes a couple of $$$$ could save your butt.

[wayner123]

Exactly....and good point reference group buys using PP as well, Jay. :tu

One should never use gift method when doing GB's. There are many reasons why.

[massphatness]

Wayne - without going into specifics - could you help educate the newer guys on your thinking here?

[kelmac07]

Never paid the fee or been asked for the "giftee" to pay the fee either.

[wayner123]

Wayne - without going into specifics - could you help educate the newer guys on your thinking here?

No problem. The main reason is because Heygal is watching. Trust me, each and every transaction goes through their software and they have measures in place to track these things. I have had friends lose literally thousands over this and even smaller "issues".

Gift method is just that. It's a gift. If you are purchasing something then you should pay the fees. That's simple business. It is NOT a loophole. They are 2 different things and that is the way Heygal sees them as well.

Too many "gifts" will get flagged. To receive the number of payments in a usual GB you must have a business account. This allows you some lower fees (sadly, not much lower). If you have a business account and get a lot of gifts to it, trust me, it gets looked at very closely. They will shut it down quick and since they are not a bank, the likely hood of getting the money that's in there is very slim.

[kelmac07]

No problem. The main reason is because Heygal is watching. Trust me, each and every transaction goes through their software and they have measures in place to track these things. I have had friends lose literally thousands over this and even smaller "issues".

Gift method is just that. It's a gift. If you are purchasing something then you should pay the fees. That's simple business. It is NOT a loophole. They are 2 different things and that is the way Heygal sees them as well.

Too many "gifts" will get flagged. To receive the number of payments in a usual GB you must have a business account. This allows you some lower fees (sadly, not much lower). If you have a business account and get a lot of gifts to it, trust me, it gets looked at very closely. They will shut it down quick and since they are not a bank, the likely hood of getting the money that's in there is very slim.

Makes total sense. Thanks Wayne.

[smelvis]

As an FYI, many of us have used the "gift" option when sending funds to people to avoid the recipient paying haygal's fees. It was a nice little loop hole to lower transaction costs. Well this practice as we know it appears to be over. When you now elect to send money via the "gift" option, at checkout haygal will give you the option to pay the recipient's fees or let the recipient pay the fees. For example if you want to send $30 to someone via gift and don't want them to pay haygal fees, the total $30 gift will become $31.17 to you. Or you can send $31.17 via gift (or noted as a purchase) and the recipient will pay the $1.17 transaction fee. Either way haygal will get their fee. I wonder how many millions of loss revenue it took for them to figure out that loophole.

So then why would a seller insist on using the gift method now?

Thanks

[emopunker2004]

As an FYI, many of us have used the "gift" option when sending funds to people to avoid the recipient paying haygal's fees. It was a nice little loop hole to lower transaction costs. Well this practice as we know it appears to be over. When you now elect to send money via the "gift" option, at checkout haygal will give you the option to pay the recipient's fees or let the recipient pay the fees. For example if you want to send $30 to someone via gift and don't want them to pay haygal fees, the total $30 gift will become $31.17 to you. Or you can send $31.17 via gift (or noted as a purchase) and the recipient will pay the $1.17 transaction fee. Either way haygal will get their fee. I wonder how many millions of loss revenue it took for them to figure out that loophole.

Not true completely. You only get charge the fee when using the transaction fee if you DO NOT have a CC attached to your account. If you only have the bank account attached then someone pays the fee with gift

[emopunker2004]

So then why would a seller insist on using the gift method now?

Thanks

see my post above

[smelvis]

see my post above

Sorry I might have quoted the wrong person, I was thinking about the no protection for the buyer when using the gift method. Sorry man!