Passing PayPal fees on to buyers when selling your items...

I want to get this cleared up once and for all (hopefully). I see a lot of people selling items here (and on other forums) where they list a price and then something to the effect of "plus PayPal fees" or "Please add 3% if paying via PayPal."

It is my understanding that doing this is a violation of the PayPal TOS that you agreed to when you created your PayPal account. I'll admit, I used to ask people to pay the 3% also, but I've been told it is not appropriate and a violation of the PayPal TOS.

I know it sucks that PayPal (like eBay) takes a percentage of your sale after every transaction, but that's just the way it is and you're free to NOT use PayPal if it bothers you that much. Honestly, before PayPal came along I had no way to accept credit card payments so I don't mind them taking a small percentage of my sale if it means I attract more potential buyers and nets me more (or quicker) sales.

Like I said, if the PayPal fee bothers someone then they should just accept a money order or cashier's check instead. Or, alternatively, just consider the 3% PayPal fee when thinking of a price for your item. If you planned to sell that Pimeta for $120, perhaps consider listing it for $125 or thereabouts. You're still "technically" passing the fee onto the buyer, but at least it's not blatantly obvious. I've found that people sometimes ask a slightly higher price when selling their items in order to compensate for their time, gas costs to the P.O. or UPS station, packaging materials, etc.

Am I wrong about this? Like I said, I'm under the impression that passing the fee onto the buyer is a violation of the PayPal TOS. I'm I'm wrong about that, then I apologize for this thread but I wanted to get it cleared up so that there is no confusion.

I used to look at it like that, but...

You are supposed to absorb that 3% fee because being able to accept credit cards is for your convenience, not necessarily the buyer's. Most people can't accept CC payments without PayPal, so is that 3% really too much to ask? Of course I'd prefer to be able to accept CC payments without a penalty, but it costs PayPal money to process those CC transactions and they certainly aren't going to absorb the costs of the millions of transactions that take place.

What I'm saying is, if paying the 3% is too much for one to bear, perhaps they should only accept other forms of payment. I just think there should be a standard here. I don't want to keep eating PayPal fees when selling my items while others are allowed to pass those costs on to buyers...and some might say "Well just start charging the fee then" but like I said that's supposedly a violation of the PayPal TOS and doing that is NOT allowed on some other forums, so it must be legit.

Thanks Kirosia, but I think there may be some misinformation in that thread.

Take the second post, for example. Bangraman says the fee is "...Paypal's burden to the seller. It's his discretion to pass it on to the buyer." and according to the information I have, that is not correct. It is not the seller's discretion if it will be violating his/her agreement with PayPal...

I'm not trying to be a stickler guys, like I said I just want there to be a standard. I wish Jude or a mod would come in and comment on this issue and just clarify what is appropriate; perhaps there could be a sticky placed at the top of the Buy/Sell forums.