Should you charge PayPal fees?

I recently got bids from subcontractors. One of the subcontractors noted that, if I wanted to use PayPal for payments, I’d need to pay an additional five percent. Five percent of the contract! Yikes!

For a $100 contract, that would be $5. For a $500 contract, that’s $25. You get the idea. Ouch.

But that’s not the thing that stuck out for me. It’s that applying a PayPal charge violates PayPal’s user agreement:
4.7 No Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method.

Even though the potential subcontractor had the best bid, I decided not to hire her. It’s up to her to take on the cost of doing business. And she obviously doesn’t read contracts very closely.

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