PayPal, the online payments middleman, has been forced to increase its fees to users for American Express by a considerable amount. Now, consumers who use their Amex cards via PayPal will have to pay the de rigor 3.5% Amex charge, in addition to the $0.30-per-transaction charge PayPal levies.

Amex plays hardball on fees — everyone knows that. But PayPal historically had some degree of leverage here, or perhaps it previously “ate” the Amex discount rate. It appears as though either that leverage has dissipated or PayPal’s ending its discount fee largess. Either way, PayPal users lose.

(NOTE: Bank Innovation is awaiting confirmation and comment from PayPal.)