Here are the Paypal Listed Payment types.

What are the payment types when I send money?

Answer :
The payment types for a purchase are:
Services: to pay for things like your internet service.
Goods: to pay for non-eBay goods.
eBay Items: to pay for your eBay purchases.
The payment types for a personal payment are:
Gift: to send money as a gift, like for a birthday.
Payment Owed: to pay your friend back for your share of a dinner bill, or to other item that your friend paid for you.
Cash Advance: payment not involving the purchase of goods or services. Your credit card provider may charge fees for a cash advance.
Living Expense: to pay for things like rent or utilities.
Other: for other reasons that aren't a purchase of goods or services

No where on the line explaining Gift of Money Owed does it talk about payment for merchandise.

Doug