Accept credit card payment via PayPal

All,

For several reasons (card fees, PCI compliance, etc) we stopped accepting
credit cards years ago. It was just not worth it.

We now have an RFP from the state of Indiana that we have been doing for
over 20 years. What is new in the RFP this time is a paragraph that they
"might" decide to pay via credit card. A line says "Please demonstrate how
your company will meet this requirement of accepting payment by credit card
as the only form of payment if the State chooses to implement this policy."

Question: If we were to set up a PayPal account for Dilgard with only our
bank account info, could the state pay us that way from their credit card
without Dilgard having to go through PCI compliance? We would never see
their card or card number. We wouldn't even know whether the money
received was from a card or bank account.

However, the real fly in the ointment is the 2.9% fee that would be tacked
onto the state's account when making that payment. They would never go
along with that.