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Yes, the fee is $.30 + 2.9%. So, if the codes were $1, he would end up with around $.67 per transaction after the fees. That doesn't mean they should be only a dollar, because there's other costs to consider, like his time, or the chance of people trying to do a chargeback, or maybe using them to generate revenue for servers--but he wouldn't lose money to PayPal fees if the codes were $1.