Companies who make payment surcharge fee if paying by Paypal

[BillieSt]

I have just bought an item from Lookfantastic, opting to make payment by Paypal and they have made a payment surcharge of 1%.  Can they legally do this?

[kernowlass]

Its only on ebay that a seller is not allowed to surcharge.

Read this from the paypal user agreement.

4.5 Non discouragement. In representations to your customers or in public communications, you agree not to mischaracterise or disparage PayPal as a payment method. You agree that you will only surcharge for the use of PayPal in compliance with any law applicable to you. You further agree that if you do charge a buyer any form of surcharge that you, and not PayPal, will inform the buyer of the requested charge. PayPal has no liability to any buyer where you have failed to inform the buyer of any surcharge. You acknowledge that if you are permitted to surcharge and your further fail to disclose any form of surcharge to a buyer this may constitute a criminal offence by you.