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It says no fee if you fund it from your paypal balance OR bank account.
There is a fee if you fund it from your credit card.
Is it an international transfer or UK > UK?
Are you using a debit card or bank transfer?
This has sometimes to do with how PayPal view the card.
All card's first 6 digits are what is called a BIN number. BIN is beneficial to identify a card brand, issuing institution or bank, country of issuance, card type and category of cards.
This is how PayPal identifies the type of card used.
Paypal are aware some banks have incorrectly classified there debit cards as credit or prepaid cards under this BIN.
You can check the BIN number of your own card using the numerous BIN check website available.
Click on the words "Help / Contact" at the bottom of paypals pages and use the phone option in the blue band at the top OR very bottom of page dependent on what country you are in. Scroll down past the list of help questions and click on 'Call us' bottom of that page. Log in and get the code.
When you get through don't select any options just hang on till you get transfered to an agent OR press '0' OR just say the word 'Agent' repeatedly.
Freephone from a UK landline or UK mobile number.
have you considered contacting Customer Service via Facebook or Twitter?
You can send them a personal message from their facebook or twitter pages.
It's: https://www.facebook.com/PayPalUK and @AskPayPal for Twitter.