Ok - wanted to share a bit of info that may or may not be helpful -
When using PayPal - there really are two classes of payments.
If you have money stored in your account, or pull from checking - you are in PayPal's house, regardless what method you use. If you file a dispute, you have to live with the results - and their classification system is archaic and overly automated.
If you back up the transaction with a credit card, you can always dispute the charge through your card issuer - provided you can backup your claim. They will override PayPal - but only in the context of their established, robust and well documented rules. For example - if you never received something, weren't credited back, wasn't as described. PayPal doesn't tell v/mc/a/d what to do with their payment types - and you are ultimately a customer of your credit card company - PayPal is a wrapper.
I don't use gift that often - because fees are a sellers responsibility as a cost of business IMO...but have run into issues before using standard, usually on purchases where ebay and PayPal have slightly conflicting policy.
It's a great service, but it's just as easy to withdraw everything before making a payment, and change my funding source to a credit card get protection. They really aren't any better or worse than the others, just a lot less of a black box.