Sending A Payment As "Goods" Vs. "Gift"?
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Sorry but there is NO WAY you should agree to his request.
Firstly there is NO BUYER PROTECTION if you send the money as "gift", once he has got it he does not need to send you anything and there is nothing you can do about it.
Secondly the fact he is doing this is worrying as that is how a lot of scams work.
Thirdly the fact his money is "pending" is not your problem. You have paid. If its pending then it means he is a new seller and the funds are pending TO PROTECT YOU. As a new seller they hold funds from buyers so the seller can't withdraw them to his bank account, then if you have to file a dispute paypal can return the funds to you.
Tell him you have paid > he must either send the item or refund you but you are not going to be sending him a "gift"..
A gift payment is used when you are eg sending a birthday pressy to a relative etc and not when you are buying good from strangers.
If he refuses to refund you then you have up to 45 days to file a dispute with paypal for non receipt of item.
Advice is voluntary.
Kudos / Solution appreciated.

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