No, as long as you don't mark the transaction as payment for a good/service i.e a commercial sale then it doesn't get reported or counted towards the $600 limit

No, as long as you don't mark the transaction as payment for a good/service i.e a commercial sale then it doesn't get reported or counted towards the $600 limit. This is exactly the same distinction Paypal has made for over a decade; if you want purchase protection on a transaction then they collect a percentage and (now) they will also count it towards the seller's $600 reporting limit. If you are just paying a friend back you don't want to pay the transaction fee anyway and you don't need purchase protection either.