PayPal has changed their fee structure to  SEP 06 2005

PayPal has changed their fee structure to allow easier micropayments. For payments less than $2, the fees with be "at a rate of 5 percent plus 5 cents per transaction" compared with "1.9 to 2.9 percent, plus 30 cents per transaction" on their regular transactions. Smart move by PayPal to harness the Long Tail of ecommerce. (via rw)