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I APOLIGIZE IF IT WAS TAKEN OUT OF CONTEXT AND TAKEN AS I WAS CHARGING FOR A SURCHARGE WHEN I WAS SIMPLY CHARGING FOR THE TIME IT TAKES FOR ME TO TRANSFER FUNDS FROM PAYPAL TO MY BANK.
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Frankly I don't buy this. The wait to transfer the funds from paypal si no dofferent than the wait on a money order to arrive, and with a money order you have the additional possibility that it was never sent and you're waiting on nothing. This leaves the 3% paypal charge as the only reason for the extra charge.
Regardless, my personal opinion is irrelevant, you seem to be missing what the Paypal TOS says exactly, partcularly this one excerpt:
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You agree that you will not impose a surcharge or any other fee for accepting PayPal as payment. This restriction does not prevent you from imposing a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge (in other words, the handling fee for transactions paid through PayPal may not be higher than the handling fee for transactions paid through other payment methods).
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It makes no difference which reason you're really adding the extra fee for using Paypal, the TOS plainly says that any added fee may be no higher than for other payment methods.
As for Paypal not caring because of the volume of sales you've done, let's look at it. On $70,000 in sales, paypal collected $2100 in fees. That's still a very small fish in paypal's pond. Do you actually think they'd overlook violation of Mastercard and Visa's policies as well as several state laws over $2100?
I once read that an estimated 40 million was transfered daily through paypal. Seventy thousand over the course of 9 months or whatever is literally nothing to them.
Personally I don't think you would rip anyone off. I would not hesitate doing business with you for fear of being scammed.
I would however hesitate doing business with you based on your attitude. A couple of times in this thread you've made comments that you are not "some hobbyist with a couple of animals" or "some hobbyist trying to make a couple extra bucks".
"Some hobbyist" makes up a large percentage of the buying public, and your comments, making "some hobbyist" out to be less than yourself because you are a "licensed business" is demeaning and alienating a significant portion of your potential customer base.
I'm not a licensed business, I'm a breeder and have been for better than 13 years now. I guess I'm still just "some hobbyist" though since I don't have a business license on the wall and my snakes don't have to pay my mortgage.
Word to the wise, thousands are spent annually by some hobbyist, you'd do well to keep them as potential customers instead of someone you have made such an effort not to be catagorized with.