Merchant surcharge to use PayPal for a purchase?

MacDoodle
Contributor
Contributor

I recently started a purchase on a template website by clicking the "purchase" button. After I clicked on the button, I was given the option to buy with "prepaid credit" (via PayPal) or purchase directly with PayPal. But, the direct purchase has a $2 surcharge levied on it.

 

Granted it's just two dollars, not a huge charge. But are they allowed to do that? I thought merchants weren't allowed to charge a fee for using PayPal? Am I wrong?

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1 REPLY 1

sandypurins
Advisor
Advisor

The US PayPal User Agreement does not permit sellers to charge a surcharge... here's the text and link...

 

4.6 No Surcharges.  You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method.  You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.

 

https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=ua/UserAgreement_full&fli=true&loc...

 

~Sandy

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