Paypal: Merchant outside the US

[CURT54]

I have a Directexpress card linked to my US Paypal account and I want to send money to another US Paypal account but it wants to charge me a 3% fee. According to their terms of use document that fee is for merchants located outside the US. Since my account Is a US account why is this happening?

[snowshoe · Accepted solution]

The fee is because you want to use a card.  If the funds were coming from your PayPal Account Balance or your Bank Account, it would be free.

Reference the Fees explained here:

https://www.paypal.com/us/webapps/mpp/paypal-fees

And they are also explained in the User Agreement.

https://www.paypal.com/webapps/mpp/ua/useragreement-full