Ebay sellers should not ask you to use friends and family. It is my understanding that Paypal does not offer any buyer protection for Friends/Family payments.
I wonder of he can be punished by Paypal for asking you to use friends and family option when it isn't allowed?
Also, and I'm not sure about this, but don't you pick to either pay the fee or charge the recipient on a f/f payment?
You said this was going to Canada? If so, the Paypal fee is what? 3% 4%
Your paying in US Dollars so he getting an extra roughly 30% in CND depending on the current exchange rate.
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