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Old 12-13-2003, 08:11 PM  
Imageauction
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Join Date: Dec 2002
Location: Tampa
Posts: 355
http://www.paypal.com/cgi-bin/webscr.../terms-outside

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). Nor does this restriction apply to Pound-denominated transactions by sellers residing in the United Kingdom listing items for sale on a UK-based website


Adult Site Traffic, you're probably thinking about the Visa/MC rules. Its not illegal, just against their merchant rules.
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