I use paypal 20 or so times a day and i have had 'discussions' with them over various things.

They are quite happy if sellers 'pass their fees on' in the same way many stores now add a charge for accepting credit cards. I have noticed more and more ebay sellers quoting 'add 2% for paypal'

I also accept credit cards (i have a PDQ terminal) with a low rate for small business (1.5% on credit cards - free for debit cards). What a lot of people dont know is that if you open a business account with paypal (which is free if you maintain $750?? of business a month) you can hassle them over the fees. I currently pay 1.2%.

The guy quoting 'paypal is great' but checks wanted for under $10 is effectively saying the same as 'add x% for paypal'.

I decided some time ago that it was far easier to add a little to the shipping fees (mine are still very low from the UK!) to cover ebay and paypal fees etc. Then the customer can choose whichever method or currency for payment he wishes and i can absorb the costs.

So at the end of the day I would conclude that any such statements are legal providing they are stated within the description, rather than being conveyed to the buyer after the auction closes.