Thank you Angelyn. It is quite helpful to have confirmation of what I had started to suspect was the case: not only is not apparently not possible for QBO to automatically handle the correct classifcation, it's apparently not even possible to correctly classify the fee at manually at transaction review time. This split classification must be done post-hoc in addition to the review process. One must run a custom report. Frankly, Intuit should be embarrassed by this. This paypal integration is half-baked.