From Saturday, 13 January, businesses in the UK will be banned from charging extra fees to customers who pay by credit or debit card. This marks the end of surcharges commonly added at the end of online transactions, such as flight bookings, or in small shops.
The change follows years of consumer frustration, particularly in the travel industry. James Daley of Fairer Finance noted that a family of four could previously be charged £48 extra simply for paying for return flights by card, far exceeding the actual processing cost of a few pence for debit cards.
While the ban eliminates surcharges, businesses may incorporate card processing costs into their headline prices. Campaigners argue this improves transparency, making it easier for customers to compare total costs. However, other fees unrelated to payment methods, such as booking fees or seat selection charges, remain permissible.
Enforcement falls to trading standards officers, but their resources have been cut, leading to concerns that policing may not be a priority. The rules, derived from the EU's second Payment Services Directive, will remain in UK law after Brexit.
