Beth, Jeff would still be getting the full amount that you owe him, but he's having you pay an extra 4% on top of that to cover the Paypal fees is all. Basically, it depends on what kind of Paypal account you have, I guess. I believe that once you accept your first credit card payment, you fall under their "professional" account, or something like that, and you get tagged for 4% for every payment you receive from then on, or maybe just every credit card payment you receive. Not sure, but I believe it's the former. So basically, most people who do any type of business using Paypal are under the account that gets charged a fee for each payment, which is why a lot of people jack up their prices, or even shipping charges, to cover the Paypal fee. What's funny, is that eBay won't allow you to charge the extra 4% Paypal fee to your buyers (since they're affiliated companies)...
Anyway, I personally don't get charged any fees, because I still have the basic/low level Paypal account, since I ONLY accept checking or balance transfers from people for stuff. I think the second that I accept a credit card payment from someone, I'm screwed (charged) from then on. But so far, so good for me, since everyone I deal with is impeccable when it comes to following my payment instructions!

The thing that sucks about money orders, is that it will still cost me an extra buck just to get one, that I shouldn't have to spend to pay for something... Oh well, I'll live!