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Glad it's an honest misunderstanding and it seems like it will all work out.
 
tell him to refund so you can pay the correct way. If no answer get your credit card company involved ASAP.
 
I will only ever pay with the gift option if it's $30 or less and the person has stellar feedback on a forum somewhere. Any other time I just add 3-4% to the total to cover their fees. It's worth it for the insurance. Oh, and always clear out your Paypal account and pay with your credit card for an extra layer of protection just in case.
 
You can claim back even if its sent as GIFT, you just have to say your account was hacked and this was not a payment made by yourself, give paypal a quick call :)
 
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