Mike - thanks for the heads up.
I assure you no one on the BST "likes" to charge the 3%
According to Paypal's terms (below) the free option is for transfers to "friends and family" as opposed to purchases although I'm sure they are aware that they have just opened the floodgates.
their terms:
"In some cases, it’s free to Send Money. Sometimes there are fees. Here’s how it breaks down.
Within the US:
Personal transfers to friends and family
* Fully funded by:
* PayPal balance
* Bank transfer
Free
* Credit card
* Debit card
2.9% + $0.30 per transaction
Fee may be paid by the sender or recipient—sender decides.
Making a purchase, i.e. goods, services, or eBay items
* PayPal balance
* Bank transfer
* Credit card
1.9% to 2.9% + $0.30 USD"