Like all banks they have a fixed component and a variable one. Your overall cost for the financing was around 3.35%, plus your monthly.

I don't know what the actual numbers are off the cuff, but let's say you found an acceptable alternative, like the Costco deal for taking credit cards, and you saved maybe $10 in a month vs the ease of using Paypal for e-Bay transactions. I don't know if the $10 would be worthwhile.

So, is PayPal "earning" their money. I don't know. I do know that most business people think that the "other" guy (usually their vendor), charges too much. Don't we all. Cha Ching!