PayPal raises fees on payments between EU and UK

Photo: EPA

The payment platform PayPal announced it would introduce new fees related to payments between businesses in UK and EU. The new conditions will come in effect from November, BBC reported. British businesses will be charged a 1.29% fee for payments from the European Economic Area and vice versa. Most of them currently pay about 0.5% in similar charges, which have remained unchanged since before the UK left the EU customs union and single market.

PayPal confirmed it was now incurring extra costs, such as the rise in interchange fees between the UK and EEA. European rules capping credit and debit card interchange fees at 0.2% and 0.3% no longer apply to UK businesses. Both Visa and Mastercard have announced they will raise them fivefold from mid-October. The EEA is made up of the 27 remaining European Union states plus Iceland, Liechtenstein and Norway. And the new charges apply to the whole of the UK, Guernsey, Jersey, Gibraltar, and the Isle of Man. Most businesses will see their current 0.5% fee raised to 1.29% - still lower than PayPal's standard 1.99% for the rest of the world - but some of those with their own customised agreements with PayPal will have their existing rate raised by 1.29%.

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