A few days ago, I bought some software for a friend. He lives in Los Angeles, so payment was obviously an issue. I had the software shipped to him directly from the vendor and paid for it myself (it had to be my credit card). We both thought that using PayPal would be super easy, and I would get payment easily enough.
I remembered that many months ago another friend of mine had sent me an invoice and I got charged a fee. Not wanting to pay any fee, I decided to send the invoice to this friend as well, but I still got charged a hefty fee. On a $96.08 transaction, PayPal charged me a fee of $3.09. This is ridiculous. The worst part is that it is not clear at all where and who gets charged a fee. Only recently have PayPal made their fee structure clear and easy to find on their website.
In either case, I don’t think I will be using PayPal anytime soon to ask my friends for money they owe me. A cheque is not too much trouble. It arrives in the mail, and I can deposit it the next time I go to withdraw some cash from my nearby ATM machine.