I have read the rants about paypal on here and it made me wonder what paypal really thought. So I emailed and then called them. It was a very interesting conversation. Basically I was told that if you are not dealing with an online business, you should select personal. Any money sent under the personal that comes from your bank or paypal balance has no fee. From the email response:

* Personal: Select Personal when you’re sending money to family or
friends. (This includes gifts, cash advances, payment owed, money for
living expenses, etc.).

* You pay no fees when you send a personal payment to anyone in the
U.S. from your PayPal account balance or bank account.

I specifically asked about selling an item I collect (I used pathtags not poker chips). Told him I paid $2 for the item and was selling to friends from a forum for $10. He told me that if I was dealing with family or friends, then it was a PERSONAL transaction and it was fine to use the personal gift or money owed.