I was contacted by PayPal about using the "Gift" option too much. They threatened to totally close my account down for using it too often. Now, I will only use it on occasion for major purchases or sales. They are monitoring that very strictly, so be careful. $3.00 for a $100 transaction is not that bad for the convenience it gives. I'm seeing a lot of people using it for smaller items, and they will get you for that if they see a trend going on.
Be careful.
Be careful.