We just got this email from Paypal:

Beginning August 6, 2004, PayPal will expand its fee structure to better serve sellers of all sizes. With this new performance-based pricing, sellers can pay as little as 1.9% + $0.30 for domestic transactions.

Advantages for sellers include:
Lower fees as their business grows

Automatic calculation of rates each month

A consistently cost-effective way to securely and easily accept payments online
Will there be any immediate effect on sellers?
No, sellers will continue to pay their current rate. When the new pricing tiers go into effect on August 6, 2004, sellers may become eligible for a lower rate. Eligibility and price tier will be determined at the beginning of every month based on the seller's received volume for the previous calendar month. Eligible sellers will need to apply before receiving lower rates. Sellers can view their monthly volume in their Monthly Account Statements located on the My Account page under the History tab.

What should I do now?
No action is required, however PayPal encourages you to learn more by clicking on the links below.

See the new domestic and cross-border pricing tiers

Learn more about how PayPal's performance pricing works

Read newly updated pricing FAQ
PayPal values your business and hopes the new performance-based pricing tiers will benefit you. For further inquiries, please contact us via email or phone by going to the Help Center.

Sincerely,

PayPal
Obviously for those of us who process adult items via Paypal this issue is moot but for those of us who still do mainstream processing through Paypal it looks like a good deal

Regards,

Lee