Payments moving between the UK and the European Economic Area (EEA) will be hit with a 1.29% fee, a rise from the usual 0.5% currently paid.
PayPal has placed blame for the decision on rising operating costs and increased interchange fees between the UK and EEA.
While EU rules ensure that interchange fees are capped at 0.2% and 0.3% for credit and debit payments, these rules don’t apply to firms in the UK.
This has seen Visa and Mastercard say they will be increasing their fees before the end of the year.
The 1.29% fee is lower than PayPal’s standard 1.99% fee for transactions between other countries.
