Ban on card surcharges comes into force

Galtero Lara
Enero 13, 2018

Surcharges have always been added to bills by businesses from airlines to takeaway apps to offset the processing fees charged by credit card companies.

Under a ban which come into effect on January 13, firms can not charge customers up to 20% more for purchases such as flights just for paying with a credit or debit card.

A BAN on "rip-off" surcharges levied by companies on customers who pay with debit or credit cards is coming into effect.

However the ban comes amid concerns that consumers may see the cost of goods and services creep up, or additional fees added by retailers, as a result of the changes.

Takeaway firm Just Eat has already drawn criticism for introducing a 50p "service charge" on all orders after previously levying a 50p surcharge on card payments.

If you notice any businesses not complying with the ban on credit and debit card surcharges you should report this to Trading Standards Service via Consumerline: 0300 123 6262.

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It is estimated that surcharging costs Britons £166million a year.

Treasury minister John Glen said: "Added transparency ensures buyers can make informed choices about how they spend their hard-earned money".

Gareth Shaw, from Which?

Consumer groups said the Government needed to monitor the ban to make sure it was having "the positive impact for consumers originally intended".

The Federation of Small Businesses warns that smaller companies will be hit with increased costs because of the move and has urged the government to lower the amount banks are able to charge small businesses for processing card payments.

Helen Saxon, chief money analyst at MoneySavingExpert.com, said: "Scrapping card surcharges may be good news - hopefully it will mean an end to surprise charges at the end of a purchase, making it easier for people to compare prices of hotels, concert tickets and more".

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