If you are being charged a fee then the sender is choosing the option for "Goods and Services" instead of "Friends and Family". When Goods and Services is selected, the PayPal System assumes you are selling something, thus, you are charged a transaction processing fee. If the sender is being charged a fee, then he or she has chosen to use their credit card as the funding source. If the sender uses money from either their PayPal Account balance or their bank account, then there are no fees. Note, there can also be fees if this is a cross border transaction. Bottom line, if both accounts are in the same country and the sender uses money from either their PayPal Account Balance or their Bank Account and chooses the "Friends and Family" option, there are no fees to either of you.
