WooPayments: Pricing changes for accounts in the EEA and the UK

There are some changes to base fee calculations and how transactions from buyers are classified. These changes affect merchants based in the European Economic Area (EEA) and the United Kingdom (UK).

We are updating the classification between the EEA and the UK to reflect the reality that transactions between the UK and the EEA are now cross border.

As a result of this change, the base fee charged for processing is changing and the standard international payment fees will be applicable when:

• A business in the UK sells to customers in an EEA country.
• A business in the EEA sells to customers in the UK.

Below is a table that outlines each country affected by this change and how the base fee is changing.

^{*Note: Norway’s prices are not changing at this time.}

Previously if…

• A buyer from the UK purchased on a site using WooPayments within the EEA.
• A buyer from a country within the EEA purchased on a site using WooPayments within the UK.

…we would only apply the standard processing fees. This is because the UK was a member of the EU/EEA and was subject to the EU Interchange Fee Regulation.

Now, since the UK is no longer part of the EEA, we were required to removed the UK from the group of EEA countries and how fees are applied to charges and the international fee will be applied in these scenarios.

Since Brexit, card networks like Visa and Mastercard now categorise transactions between the UK and the EEA as cross-border payments. Visa implemented these new rates in October 2021, and Mastercard announced their rate increase in April 2022. As a result of this distinction, there are increases to the underlying costs and interchange rates (fees paid to issuing banks set by the card networks) set by these card networks.

Up until now, WooPayments has absorbed these increased costs on behalf of our merchants. Unfortunately, it is not sustainable for us to continue to do so; to sustain the quality experience you have come to expect, we find it imperative to adjust our fees to reflect these underlying costs.

This change in pricing is due to changes in the law and fees set by Visa and Mastercard — not by WooPayments. Accordingly, any other payment processor working with Visa and Mastercard will be using this new fee calculation method as well.

Network cross-border fees and costs are assessed based upon the network definitions of regions. In this case, Northern Ireland is considered to be part of the United Kingdom, which is not considered part of the EEA or EU under network definitions.

This is not a decision that the WooPayments team has any control over. In this case, Visa and Mastercard set the fees in accordance with legal requirements.

Our aim is to ensure our WooPayments merchants are operating within compliance of the law and the pricing change requirements. You can read more in a recent UK Payment Systems Regulator memo.

These changes will be effective on 1 March 2024.

We’ve included the email content that was sent with this notice.

Subject: Important Update: Fee Changes for WooPayments in the UK

Thank you for choosing WooPayments as your trusted payment solution. We are writing to inform you of some upcoming changes to base fee calculations and how transactions from European Economic Area (EEA) buyers are classified, effective 1st March 2024.

What’s changing?

Transactions between the UK and EEA are now deemed to be cross-border, and standard international payment fees will be applicable. In addition, the base fee charged for processing is changing to reflect this status. 

See related fees for each country.

Why is this change occurring?

Historically, WooPayments classified transactions from EEA-based buyers to merchants in the United Kingdom as intra-EEA. Since Brexit, card networks now categorise transactions between the UK and the EEA as cross-border payments, resulting in an increase to underlying costs and interchange rates set by the card networks like Visa and Mastercard. Visa implemented these new rates in October 2021, and Mastercard announced their rate increase in April 2022. WooPayments has maintained the same rates since then, but will be changing fees accordingly as of 1st March, 2024.

If you have any questions about these changes, please reply to this email directly.

We appreciate your understanding and continued partnership with WooPayments.

Subject: Important Update: Fee Changes for WooPayments in the EEA

Thank you for choosing WooPayments as your trusted payment solution. We are writing to inform you of some upcoming changes to base fee calculations and how transactions from UK buyers are classified, effective 1st March 2024. 

What’s changing?

Transactions between the UK and EEA are now deemed to be cross-border, and standard international payment fees will be applicable. In addition, the base fee charged for processing is changing due to the change in the UK’s status. 

See related fees for each country.

Why is this change occurring?

Historically, WooPayments has classified transactions from UK-based buyers to merchants in the EEA as intra-EU. Since Brexit, card networks now categorise transactions between the UK and the EEA as cross-border payments, resulting in increases to underlying costs and interchange rates set by the card networks like Visa and Mastercard. Visa implemented these new rates in October 2021, and Mastercard announced their rate increase in April 2022. WooPayments has maintained the same rates since then, but will be changing fees accordingly as of 1st March, 2024.

If you have any questions about these changes, please reply to this email directly.

We appreciate your understanding and continued partnership with WooPayments.

Our team is available to provide any clarification you may require regarding these changes. You can contact our support team here with any questions you may have about WooPayments.

We appreciate your understanding and continued partnership with WooPayments.