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I'd let them know there's an 8% fee if they wish to use PayP...

I'd let them know there's an 8% fee if they wish to use PayPal and no fee for the other options. Let them know straight up that the transaction fees cause you to lose money and that there are several options to choose from. They don't have to choose PayPal. If they do, there's a fee. Period.

For future contracts, you may wish to put that part in there right up front.
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