Credit and debit card surcharges to be banned
Posted in Licensing | July 19, 2017 | by Dadds LLP Solicitors
Pubs and restaurants will no longer be able to charge customers extra for paying by debit or credit card, the government has said.
From January 2018, businesses will not be allowed to add any surcharges for card payments.
The UK ban will apply to consumers paying with Visa, Mastercard, Paypal and American Express cards, the Treasury confirmed.
According to estimates by the government, consumers spent £473m on surcharges in 2010.
Banks typically charge large retailers between 10p and 20p for each debit card transaction, or 0.6% for credit cards.
The Economic Secretary to the Treasury, Stephen Barclay, said: “Rip-off charges have no place in a modern Britain and that’s why card charging in Britain is about to come to an end. This is about fairness and transparency, and so from next year there will be no more nasty surprises for people at the check-out just for using a card."
The decision follows a directive from the European Union. The change in the law may mean some companies will simply put up their prices to cover the extra costs.
Businesses caught charging customers for card payments will be ordered by authorities to repay the fees, with those who refuse facing fines of thousands of pounds.
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