Ban on hidden card payment charges

An EU-wide ban on hidden charges for payments by debit or credit card came into force earlier this month.

Such surcharging had become the norm, particularly for online purchases, with unexpected charges appearing just before checkout. It is estimated that this cost UK consumers in the region of £166 million in 2015 alone.

It is, however, now unlawful for retailers to charge additional fees when someone uses a particular credit or debit card, or other payment systems such as PayPal, to make their 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.

The recently-appointed Economic Secretary to the Treasury, John Glen MP, 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.

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.’

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