Date: 2013-06-17 10:51 pm (UTC)
Absolutely not. They're trying to skirt around Paypal policy by doing this, but it's really more your point "B" that is why you don't want to do it. Just send the payment as "goods" (I wouldn't even probably discuss it to be honest) and if they have a problem on their end, at least it's easier to resolve.
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