PayPal is raising fees for payments between the UK and the European Union.
The financial technology company will start charging new fees for payments made between businesses in the UK to and from those in Europe from November.
British businesses will be charged a 1.29 percent fee for any payments from the European Economic Area, and vice versa.
According to the BBC, most businesses currently pay around 0.5 percent in similar charges, which have remained unchanged since before the UK left the EU customs union and single market.
But from November, PayPal will begin charging more for the transactions, as the company claims it is now incurring extra costs which must be passed on.
European rules capping credit and debit card interchange fees at 0.2 percent and 0.3 percent no longer apply to UK businesses.
In a statement, PayPal claimed it was "simplifying" its cross-border fees with the new changes.
They said: "In a highly competitive market, this will make it easier for these businesses to compare PayPal's pricing with that of other providers and to better appreciate the value we provide.”
However, the decision has been slammed by the Federation of Small Businesses (FSB), who insisted any rise in payment fees is “unwelcome news” for struggling businesses.
