PayPal is increasing fees that will affect business with the EU – British companies will be charged a 1.29% fee for payments from the European Economic Area (EEA) and vice versa starting from November.

Most businesses currently pay a 0.5 per cent fee for similar charges, a figure that has remain unchanged since before the UK left the EU customs union and becomes a single market.

PayPal said it is incurring extra costs such as the rising interchange fees between the UK and EEA as European rules capping debit and credit card interchange fees at 0.3 per cent and 0.2 per cent, respectively, no longer apply to UK businesses.