There is absolutely no reason to use PayPal at this point and any place that only takes paypal should be boycotted.
> PayPal will also stop letting you refund the percent they take out so you will be holding the bag when you refund a customer.
When I refund a customer, I wouldn't expect the power company to refund the electricity spent serving that customer, and I wouldn't expect UPS/FedEx to refund the delivery of that customer's package. Why should PayPal refund the costs of the customer's transaction ?
This will be particularly true for a large payment processor like PayPal, since they will have a lot of negotiating power when it comes to the transaction/interchange fees they pay.
A good reason to get interchange plus pricing from your CC processor.