The second paragraph of your story is inaccurate. With PayPal, it is always free to send money to another account holder. In some cases, fees on these transactions may be charged to the recipient (ie. if the sender were to use a credit card to fund the transaction). Receiving bank account/ACH transactions, like those you describe above, are always free for Personal account holders. It's what makes PayPal such a great service, as evidenced by our 164 million accounts.

You can find a detailed breakdown of our fee structure here: https:// http://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees-outside“ title=”http://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees-outside“ target=”_blank” ref=”nofollow”>http://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees...

Michael Oldenburg
PayPal Corporate Communications