Card surcharges to be bannedPosted by James Howard / July 19th, 2017 / No responses
From January 2018, any surcharges applied to a debit or credit card transaction will be banned.
Following a directive from the European Union which comes into action on January 2018, businesses will no longer be able to charge consumers an additional fee when paying by card. This change affects all transaction types including face to face transactions via chip and pin and online payments made via a payment gateway such as our custom gateway or PayPal.
The worst offenders for applying surcharges currently are airlines which currently can add a £5 minimum spend and an extra 3% on credit cards however other culprits include food ordering apps such as Just Eat and many small businesses who add a surcharge to cover their transaction fees.
This change is likely to have side effect of many businesses increasing their prices to cover the cost. “Maybe they will bump the price up…” the managing director of Fairer Finance, James Daley, “…That’s fair game. You have to take customers’ money somehow. And it’s not reasonable to add that cost on at the end of the process. – Why not put it in the headline price?”