How to send money as gift on paypal

I received money as a gift (didn't know if was sent this way at the time as the transaction detail did not explain this). The sender also sent an email from their account in short asking me to send them a Western Union Check for the same amount. The Sender account was a business I had purchased from in the past and since I recieved both payment as well as an email from their personal account I thought it was valid (I also asked them to verify some additional info).

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Please note: As of August 1, 2022, Paypal no longer allows churches to receive gifts using the “Send money to a friend” option. And, at the same time, Paypal has increased their fees. We recommend finding another way to give to the church.

Once I sent the Western Union money the funds were removed from my account as the sender filed an unauthorized transaction claim. Now I am stuck with a loss of $300. As the sender's account was the one that was compromised and I thought it was the sender who sent the funds and I sent the Western Union money in their name, am I responsible to take the $300 loss? Their account was compromised and misued to defraud me and I am now at a loss. Please let me know how this is possible.

Also, paypal did not allow me to submit any evidence to show my side of the case and how I was scammed through their system.

If you have a Paypal account, you can NO LONGER send a gift to the church via Paypal without incurring any fees. Please read these instructions carefully so that you or the church does not incur a 3% fee.

Step 1

Log into your Paypal account and go to the home page. From the home page, select the More link under the Money option.

Step 2

On the next page, select the Send or request money option.

Step 3

Enter the church’s email address as shown, and then click the Next button.

Step 4

You don’t want to use the Paying for an item or service option. This will incur fees for the church. Click the Change link.

Step 5

Select the Sending to a friend option. (This is how you send a gift in Paypal.)

Step 6

Verify that the correct option is selected. If you want, you can add an optional note about what the gift is for, and then click Continue.

Step 7

Important: You get to choose where the money comes from. Don’t use your credit card, or you will incur fees yourself. You can either use your Paypal balance, or pull money from your checking account, or both–whatever works best for you.