@breestjon it depends on whether someone sends money as "payment for service/goods" or "send payment to a friend," but that is not the fee being discussed here.
When a business processes payroll through Paypal they are charged a fee for this service. The business either counts this as a cost of business, or has the option of passing the fee on to the recipient. Only a few MSCs do the latter, as most (rightly) consider payroll a cost of doing business.
MSCs who charge me for their payroll feed go on my 10-foot-pole list, as in my mind this nickle & dime BS speaks to their (lack of) character.