From 13th January 2018, it will be illegal to apply a surcharge to payments by debit card, credit card and it seems PayPal too. The new law has been represented by the UK Government and media as ‘cracking down on payment fee rip-offs’. We do not charge any additional fee for payment by credit/debit cards, including American Express, but PayPal’s fees to us are up to three times what we pay for regular card transactions, hence why we currently have a 2.5% PayPal surcharge. Our customers have the choice of paying either by card (through the Stripe Gateway) or via PayPal with the surcharge. Nobody is being ripped off here, rather we give our customers a clear choice and we are able to keep our regular prices down, by offsetting PayPal’s frankly exorbitant fees with a 2.5% surcharge.
We have two choices from 13th January when the PayPal surcharge has to end – either increase prices across the board to cover PayPal’s fees, or to remove the PayPal payment facility altogether. We will take the second option. Anyone still wishing to pay via PayPal will still be able to do so, but you’ll have to call or e-mail to discuss the deal, and PayPal will no longer be an option at the checkout.