Rip-off card charges will be consigned to history, after
Ministers today acted to end these unfair fees for millions of
people across the country.
The Government has unveiled new rules that will mean
card-charging in Britain- where people can be charged 20% extra
for purchases like a flight just for paying with a credit
card - will come to an end in
January.
‘Surcharging’ is common practice across the country - with
businesses ranging from takeaway apps to global airlines charging
people to make card payments or for other services such as
Paypal. While many industries have acted to absorb the cost and
not pass these on to consumers, these rules will bring an end to
the practice entirely.
The rules will also tackle surcharging by local councils and
government agencies such as DVLA.
In 2010, the total value of surcharges for debit and credit cards
was an estimated £473 million.
The Economic Secretary to the Treasury, , said:
“Rip-off charges have no place in a modern Britain and that’s why
card charging in Britain is about to come to an end.
“This is about fairness and transparency, and so from next year
there will be no more nasty surprises for people at the check-out
just for using a card.
“These small charges can really add up and this change will mean
shoppers across the country have that bit of extra cash to spend
on the things that matter to them.”
The government has previously capped the costs that businesses
face for processing card payments, and will engage with retailers
to asses if there is any more that can be done to help.
This action forms part of our wider help for families with the
cost of living by helping to raise their incomes and keep more of
what they earn.
