The payment service provider PayPal apparently wants to significantly increase the fees for payment transactions by merchants between Great Britain and the economic area of the European Union (EU). This is evident from a price overview for sellers, which is expected to apply from November 10, 2021. The higher prices in payment transactions with PayPal affect the United Kingdom, Guernsey, Gibraltar, Jersey and Isle of Man.
The merchant document shows that in future a fee of 1.29 percent of the amount paid will be due in international payments between Great Britain and the EU. So far, the fee has been 0.5 percent of the respective amount. The fee remained the same after Great Britain left the EU. For payments between Great Britain and other countries in the world, fees of 1.99 percent of the transaction amount are still due. This means that the fees that will then apply will still be lower than for transactions in the rest of the world.
PayPal established the fee increase According to the BBC, there will be additional costs after Brexit. Specifically, it is about the higher exchange fees between Great Britain and the EU, which should be offset with the increase. The limited exchange fees for credit and debit cards of 0.2 percent and 0.3 percent that previously applied to British companies are no longer applicable, so that switching to other payment options will not pay off for retailers in the future either. The credit card providers Visa and Mastercard want to increase their fees by around five times as early as mid-October.
The ones who suffer from the effects of Brexit with the fee increases in payment transactions that are now in the room are likely to be primarily smaller traders who have to get by with low margins and who are already expecting a sharp pen. They are already paying more due to the more difficult handling between Great Britain and the EU, so that exports are hardly worthwhile for them.
PayPal talks about it to the BBCto have simplified cross-border fees. This also enables a better comparison with the fees charged by competitors. It would allow companies to better recognize “the value we offer”.