This morning I discovered a new Paypal rule. If you are purchasing/selling credits using Paypal using the friends and family option, Paypal will require you to use cash in your Paypal account in order for the transaction to be free. If the "buyer" uses a credit card to pay for the credits, Paypal will charge the buyer a fee for making the purchase. I presume this is to cover the fee that Paypal has been paying the credit card companies for these free (to us) transfers.

I figured something like this would happen sooner or later-and later has arrived.
 

I think it's been that way for a while.

I think you can deduct it from your checking account on file also.

It has been this way for awhile and if you just don't use a credit card to pay it still works fine. It will deduct from your linked check account with no fee added.

I look at it as similar to buying a money order at the post office.  You have to use a debit card or pay cash.  Once cash is transferred it can't be canceled.  If paypal is transferring cash to someone it should be cash not credit that could be canceled.

There was always a fee for using a credit card, only transactions with money in your paypal accounts or checking account linked to your paypal account are free.