I would like my customers to receive a 3% discount when they pay with Paypal. I have attempted to use the "cost modifier" in the online payment section of the cart admin to allow for the 3% discount by entering a negative figure, (-.0300) but even though the cart will reflect the 3% discount information next to the Paypal payment option, it will not actually apply the discount.. there is no change in the total, even following it through to Paypal. I've tested it several times to no avail. I have since simply created a discount code, "paypal" for those who wish to pay using that service, but it requires them to go back a screen and enter the code. As simple as that is, some get confused and others just abuse the discount code by entering it and then paying using a different payment option which is causing a problem.
The instructions indicated such a discount was possible using the cost modifier, but I just can't get it to apply the discount

I am really hoping someone who is experienced with the workings of the cart, can perhaps tell me if I'm doing something wrong, forgetting a setting of some sort or ????.