Ok, I think I have this sussed.
By marking the payment as a "gift" - this means that the recipient receives 100% of the money that you want to send. If there are any fees, then they are payable by the sender, and the sender is advised of them before sending the money.
These fees apply if you use a credit card to fund the account, for example. There are other circumstances where fees are payable too.
With that said, I'm happy to put myself as lead of group 3.