PayPal has increased its fees in the United Kingdom and Europe
From November, PayPal will charge extra fees for payments made between firms in the United Kingdom and those in Europe.
For payments from the European Economic Area and vice versa, British businesses will be charged a 1.29 percent surcharge.
Most people now pay roughly 0.5 percent in equivalent fees, which haven’t altered since the UK left the EU’s customs union and single market. PayPal claimed it was now suffering additional charges, such as the increase in interchange fees between the United Kingdom and the European Economic Area.
Credit and debit card interchange fees are no longer capped at 0.2 percent and 0.3 percent in Europe, respectively.
Visa and Mastercard have both declared that they will increase their fees fivefold starting in mid-October. The European Economic Area (EEA) is made up of the remaining 27 European Union member states, as well as Iceland, Liechtenstein, and Norway.
The new fees apply to the entire United Kingdom, as well as Guernsey, Jersey, Gibraltar, and the Isle of Man.
Most businesses will see their current 0.5 percent cost increased to 1.29 percent, which is still lower than PayPal’s usual 1.99 percent price for the rest of the globe, but certain firms with their own customised PayPal agreements will see their current rate increased by 1.29 percent.
The new cost was first indicated on the same day that the company revealed it would take Bitcoin as a form of payment, but no details were released until this week.
PayPal announced that it would “simplify” its cross-border costs.
“In a highly competitive market, this will make it easier for these firms to compare PayPal’s price to that of other suppliers, allowing them to better understand the value we deliver,” the company stated.
Over the last three months, a little more than 40% of small exporters reported a decrease in the value of their exports.
“We need to see the government provide better support for small exporters, such as a relaunched SME [Small and Medium Enterprises] Brexit Support Fund and a revamped Tradeshow Access Programme,” McTague added.