Stripe fees are increasing for processing payments for cards in the EEA, affecting cross-border card transactions. The increase is due to Brexit and card network cost changes, and comes into effect on 1st July 2022.
Stripe Fees Increase
Following Brexit, the UK is no longer subject to EU Interchange Fee Regulation, meaning that card transactions between the UK and EEA are classed as cross-border payments. This means that interchange rates have increased – these are the fees paid to issuing banks set by card networks.
Visa and Mastercard have already implemented their new rates, which Stripe had previously not passed on to users. However, in order to continue to offer their services, Stripe is raising their fees to reflect the underlying costs.
New Stripe Fees
See the table below for more details:
|Current Price||New Price|
|EEA business selling to UK card holder||1.4% + €0.25*||2.5% + €0.25*|
|UK business selling to EEA card holder||1.4% + £0.20||2.5% + £0.20|
|EEA business selling to EEA card holder||1.4% + €0.25*||1.4% + €0.25*|
|UK business selling to UK card holder||1.4% + £0.20||1.4% + £0.20|
This fee increase only affects cross-border transactions, with domestic transactions (e.g. UK business selling to UK card holders) pricing remaining unchanged.
There’s no action necessary for you, with fees automatically updating on 1st July 2022 if you have cross-border transactions that are subject to the price changes above.
If you are a Ballyhoo client and want more information, or if you are interested in having an E-Commerce website built, contact us now on 0121 295 5352 or email us at [email protected] and our friendly team will be happy to help.