I think they musta deducted their portion. My acct shows i sent $10.
Yeah it says it deducted a $.51 fee. I don't know why because I don't know PayPal. It's all good though lol.
So with PayPal you have the option to either "Pay for goods and services" or "Pay friends and family". If you choose the former, you end up paying the fee (or well, the payee pays the fee) - no fee with the latter. There are plenty of businesses that flow their payments through PayPal, so for those, PayPal takes its cut - that must have been what HMW did.
They do keep an eye on the "Pay friends and family" payments to make sure you're not abusing the system, and having a business that is having everyone pay them via the friends/family route. I'm involved in a fairly large March Madness pool up here every year (finished 2nd this year - which was a 4 figure payout... if the result of the title game was different I would have won the thing). The guy running the pool caught some crap from PayPal last year for receiving so many $50 PayPal payments that they threatened to take a fee from that anyways. This year his master plan was to have everyone write in the memo section "Boston Marathon Pledge" to act as if he was getting all these payments as fundraising for running the Boston Marathon for a cause... not sure if they caught on to that or not.