Quoted from Leeb18509:
If you use a CC they still charge the 2.9% fee so there would be no point in classifying it as a "gift". But I see your point, to the CC company a charge is a charge.
FWIW, I just sold a pin to a new Pinsider long distance and explained the "gift" option and reasoning behind using it. I could tell he wasn't completely comfortable so I offered to split the fee with him.
I personally do not get the whole idea of using gift period. Using gift, the buyer pays the fee, using the goods method the seller pays the fees - so just up the price to cover the fee - the buyer pays the fee regardless. I would assume that most people that insist on PayPal build the fee into the original price (or just eat it) in the first place.
Splitting the fee was nice of you to offer.