Government ban all charges for paying by credit or debit card

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Government ban all charges for paying by credit or debit card

The Credit Card Surcharge Ban is now in force which means businesses in the United Kingdom are no longer able to add an additional charge to customers to cover the cost of taking payment by personal credit or debit card (or any other personal payment method, including Paypal or Apple Pay), regardless of whether they're processed in-store or online.

The ban applies to all contracts entered into after the 18th July 2017 and payments made after 13 January 2018. This means that for balance payments made on or before 18th July 2017, businesses may still charge a fee for payment by credit card, even if the client pays the balance after 13th January 2018. However, contracts made after 18th July 2017, where the client wishes to pay their balance by credit card after 13th January 2018, no fee may be charged. The ban applies to sales in the UK and EEA.

What may a business do?

  • Absorb the credit card fee as a business cost
  • Increase headline price to reflect the additional cost
  • Stop offering credit card as an option altogether

The new rules are enforced by Trading Standards, who have the power to take civil enforcement action against those who breach the regulations.