New rules which come into effect on 13 January 2018 will mean it will be illegal for companies to charge customers for paying by card.
The Economic Secretary to the Treasury, Stephen Barclay stated:
“It’s about fairness and transparency”.
“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.”
In 2010, the amount collected by merchants was nearly £500m.
This is good news for customers, who will no longer be penalised for paying by card, but with banks still charging the fees, companies will now be required to absorb the cost or increase their prices to compensate.
Please make sure you are ready for these changes, failure to comply could result in a fine and imprisonment.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.