[jayshum]

Originally Posted by Fred

USPS Insurance rates:

$50.01 to $100 is $2.05.
$100.01 to $200 is $2.45.
$200.01 to $300 is $4.60.

The price per additional $100 of insurance, valued over $300 up to $5,000, is $4.60 plus $0.90 per each $100 or fraction thereof.

$500 = $6.40
$1K = $10.90
$2K = $19.9

If the insurance rate for USPS is about 1% (there about), then wouldn't it just make sense to pay the 1% USPS insurance cost rather than the PP G/S rate of 3%?

Based on the information provided, PPGS is 3% and is great for the buyer because of the protection offered.

If the buyer paid for PPGS and declined the insurance coverage offered by the seller, then it wouldn't matter if the package didn't show up (for any reason), because the buyer is protected whether or not they opted to pay for insurance. Is that abut the gist of it?

I'm still lost on how paypal could force PPGS on sales rather then PPFF. I suppose if paypal saw MANY transactions, then they could assume the payment transfers are for G/S rather than a friendly payment.

Last comment (hopefully) - Is paypal relying on the community to be honest in the transactions? I can see where paypal would like to collect fees because paypal is a business and PPFF payments are free to both sender and recipient.

I have seen several posts that have indicated the difficulty in collecting on USPS insurance claims so that could be one reason to use G/S even if it costs more.