CNET: Yahoo drops fees on PayDirect payment service

Stefanie Olson reports that Yahoo has removed some fees from its PayDirect person-to-person payment service.

In the last week, Yahoo split PayDirect to give customers two options. One, a free account, is designed for family and friends who want to exchange money online without using credit cards. (Previously, Yahoo charged all subscribers, even if they didn't use a credit card.) The "professional" service racks up fees from the customer who accepts credit card payments--a common practice for online auctioneers. Yahoo charges 30 cents plus 2.5 percent of the cost of each transaction made using the service.