Avoiding The PayPal "Vig"

[PGACPA]

I was just told one can avoid the 3% PayPal “vig” by sending money as a GIFT.

In Paypal:
-Select “SEND MONEY”
-Select “PERSONAL”
-Select “GIFT”

If this is true it may be a convenient way for the seller to avoid paying the 3% PayPal fee. The obvious caveat is, if a dispute arises, the person sending the money would likely have a difficult time defending his/her position. All the recipient would need to say is, “hey it was a gift!”
If true, it may be a good way to save a few bucks between collectors/traders with whom you have a relationship with, trust, or have done business with in the past.
Any additional FB on whether this or not this is factual would be helpful.
For the record I am not trying to cheat PayPal, rather taking advantage of a service they may be offering.
Thanks.