PayPal increases the fees for certain cross-border transactions.
MasterCard and Visa will also charge more in the future.
Martinsried - The UK referendum took place in 2016.
How it ended is known: 51.89 percent of all participants voted for the UK to leave the European Union.
Brexit will bring many changes, such as empty supermarket shelves.
Consumers are now feeling the consequences of the payment service provider PayPal with a little delay.
Paypal draws conclusions from Brexit: These fees are increasing
PayPal will now charge 1.29 percent of the amount for transactions between the EU and Great Britain instead of the previous 0.5 percent. Both customers and dealers are affected. This emerges from a new payment overview from the service provider, which is to apply from November 10, 2021. However, the fee for transactions to the rest of the world is even higher: Here the payment service charges 1.99 percent of the amount by default.
The payment service
told the
BBC
that this increase is intended to “simplify the fees for merchants in an international context.” At the same time, PayPal also named increased exchange fees as the reason for the price increase.
Due to Brexit, the previous price caps are no longer valid.
According to the Federation of Small Businesses, this is driving small traders to ruin: Many would have to stop exporting to the European Union due to the higher costs.
Paypal price increase is not an isolated case: MasterCard and Visa are also increasing fees
Credit card giants Mastercard and Visa are also increasing their fees for transactions between the European Union and the UK. Starting in October, the fees will rise to 1.5 percent for credit card payments. For debit card payments, Mastercard and Visa will in future require 1.15 percent of the amount. Within the European Union, credit card fees are capped thanks to the EU regulation on interchange fees. Mastercard and Visa were therefore only allowed to charge 0.3 percent fees for credit card payments and 0.2 percent for debit cards.
Due to Brexit, the cap on transactions in and from the United Kingdom will no longer apply.
In the future, consumers will not only pay higher fees to the credit card giants and PayPal.
There is also concern that the increase in fees will increase consumer prices in the long term - provided retailers pass the higher fees on to their customers.
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