Upcharging for Paypal..... Legal??

Herb,

I see the number of sellers charging an extra percentage to use Paypal, etc.

I am in business and was told this is not legal in mystate and others. I know Ebay will close your ad down if you do.

Sellers can price accordingly and offer a 2% cash discount (strange I know) and this is OK on ebay. Or, simply do not take Paypal or other credit cards.

Thanks

The following is from the Paypal user agreement.

5.No Surcharges. Under Visa, MasterCard, Discover and American Express regulations and the laws of several states, including California, merchants may not charge a fee to the buyer for accepting credit card payments (often called a "surcharge"). You agree that you will not impose a surcharge or any other fee for accepting PayPal as payment. This restriction does not prevent you from imposing a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge (in other words, the handling fee for transactions paid through PayPal may not be higher than the handling fee for transactions paid through other payment methods).