Hidden charges for paying with a debit or credit card will be banned from today (13 January).



Hidden charges for paying with a debit or credit card will be banned from today (13 January), helping millions of UK consumers to avoid rip-off fees when spending their hard-earned money.

So-called ‘surcharging’ has become commonplace, particularly online, with many retailers hitting people with surprise charges just before they are about to make a purchase. Some retailers have been known to add charges which are far higher than it costs them to process a payment. It is estimated that surcharging cost Brits £166 million in 2015.

Today’s ban means that it will be unlawful for retailers to charge additional fees when someone uses a particular credit or debit card, or other payment systems like PayPal, to make a purchase. This will ensure consumers can be confident that there won’t be any nasty surprises, and they won’t be penalised for wanting to pay in a particular way.

Economic Secretary to the Treasury, John Glen said:

It’s completely unfair for someone to be hit by a hidden fee just before they are about to make a purchase, so by scrapping these rip-off charges we are helping to give power back to the consumer.

As we build a fairer society, this added transparency ensures buyers can make informed choices about how they spend their hard-earned money.

The new rules will be enforced by Trading Standards who will have the power to take civil enforcement action against traders who breach the regulations. It will also entitle customers to receive a refund of any unlawful surcharge they have paid and enable them, if necessary, to take legal action to recover any such surcharge.

The ban on credit and debit card surcharges is effective across the EU from Saturday 13th January 2018, and will apply to all purchases made where the banks of the consumer and retailer are within the EEA. In the vast majority of other circumstances surcharges are capped at the cost to the retailer for processing the payment. The UK Government took the decision to also include other payment methods such as PayPal in the ban to further protect consumers.

An admirable solution, except that the charges will be included in the purchase price. Hence, people that do not use credit cards, (which most of this is about) will pay for the people that do use them.

Not quite as fair as it seems, is it.

Just wait till they get rid of "Hard Cash" full stop and its "ALL" electronic/digital, they will be moaning and up in arms then!!! LOL Can't wait

Will this no debit charge apply when paying for a taxi with a debit card. As they charge a percentage for the use of what can only be described as the usual modern way of paying for a service? I might ring up tomorrow a local taxi firm and enquire. 🤕

Wondering if firms will introduce service charges instead. Personally I've accepted the charges for travel but obviously feels like a rip off for some services, especially 🚌 ness to business where for gods sake you are getting paid and no debtor to worry about

I believe Just Eat have included a 50P service charge instead for credit cards.

Originally Posted by PENTHOUSEJOE

Will this no debit charge apply when paying for a taxi with a debit card. As they charge a percentage for the use of what can only be described as the usual modern way of paying for a service? I might ring up tomorrow a local taxi firm and enquire. 🤕

The taxi charge is what they get charged for using said card machine or online, and so it is passed on to the customer, otherwise the driver is getting less than the fare charged for said transaction

Oh look, Conservatives claiming it was their idea forgetting it is an EU directive and nothing at all to do with British Government.