Be careful with paying by PayPal using the "free" option. Make sure you click on the "send money to family and friends" option. If you click on "send & request," the payment defaults to a merchant payment with a shipping address, and the recipient pays fees.

Even if you click on the right buttons, an option will pop up to click a box to designate it as payment for merchandise, triggering the buyer protection plan. Once again, this will make it a merchant payment and the recipient will have to pay fees.