Rip-off credit card charges banned from TODAY – but will it help you?
Consumers who pay with their credit cards could now see savings of up to 20 per cent - but will prices just go up elsewhere?
A BAN on rip-off credit and debit card surcharges comes into force today.
Companies will no longer be allowed to charge customers up to 20 per cent more for buying with plastic.
But there are fears they will just raise prices or add other charges to get round the law.
Takeaway company Just Eat has introduced a 50p “service charge” after previously levying a 50p surcharge on card payments.
Consumer groups said the Government needed to monitor the ban to make sure it was having “the positive impact for consumers originally intended”.
They also called on shoppers to report anyone flouting the rules.
Surcharges have long been added to bills by businesses from airlines to takeaway apps to offset the processing fees charged by credit card companies.
They are also levied by some councils and government agencies, such as the DVLA.
It is estimated that surcharging costs Britons £166million a year.
But from today the fees should be absorbed by the seller. It also covers PayPal or Apple Pay, credit transfers and direct debits.
MOST READ IN UK NEWS
However, companies can still add an administration or service fee to the bill as long as it applies to all payment methods. For example, booking fees on buying theatre, concert or cinema tickets will remain legal.
Treasury minister John Glen said: “Added transparency ensures buyers can make informed choices about how they spend their hard-earned money.”
But Helen Saxon, from MoneySavingExpert.com, warned: “It may be that we see the amount that used to be charged in credit card fees popping.