Thanks for your response.

However, doesn't it go back to what 'termalert' said -  that sellers should have the right to accept C/C payments or not.  

As sellers are unaware that C/C is the payment method being used,  if things go haywire with the transaction, why should the seller be slugged with any costs from PayPal, when it is PayPal who have allowed a C/C to be used, with no prior approval (knowledge) by the seller.

The fee may be in PayPal T&C, but it's a bit of a backdoor way of getting money.  

The buyer screws up with their C/C, the bank charge a fee, PayPal on-charge the seller the fee, and presumably buyer gets off scot free...!!!   ??? !!!

Note - you can have payments direct from your bank account, as long as you have a C/C or D/D card attached to your PayPal account.  Depends on what payment options you have set up with PayPal.