paying as gift is bad news
Why should a seller worry with the gift thing, since it is relatively small, what, 3% + $0.30?
For whatever reasons, Paypal fees have never bothered me. Now, ebay fees, well, that is another matter, and don't get me started.
When you send money as a gift, it will be assumed that is what it really is. Therefore, Paypal does not tell the "seller" the "buyer's" address (because you don't send money to random strangers, right?) since you will not be expecting to receive something in return.
And there is no dispute process, because, who takes back a gift?
I recommend that sellers simply build the fee into the price and everybody stays honest.
This gives a buyer a valid path for recourse.