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Paying for PayPal

I just won an item for £5.50 from a 'Newbie' seller (F/B of 1). The payment instructions went as follows: "...if you want to pay by PayPal please add £1.00 to total, which is approx 50% of their charges."
I'm not sure which one of us is being ripped off!
(I paid it because I wanted the item but I let him know he was breaking the rules.)
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