Ban on card payments surcharging looms

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Retailers will no longer be able to charge customers to use credit or debit cards in store from 13 January.

Current EU rules prohibit businesses from charging customers more than the costs of offering card payments, but the new legislation will ban surcharging completely.

The Association of Convenience Store’s latest Voice of Local Shops survey shows that about 13% of retailers currently surcharge for card payments.

It will remain legal to have a minimum spend for card transactions - 33% of retailers currently adopt this policy - or to not accept card payments.

ACS chief executive James Lowman said: “These rules were introduced mainly to stop excessive card payment charges by on line retailers and service providers, but they also apply to shops including convenience stores.

“Retailers need to be aware of this, and the small minority of retailers who currently charge customers to use cards will have to stop doing this after 13 January.”

Readers' comments (3)

  • as per my reading of the legislation coming from EU does not specifically say this . what the legislation says that businesses may charge the cost of transaction fees incurred by the businesses .

    that is the guideline from EU directive . but what UK gov adds to that will be worth watching .

    our burocrats have the tendency to make a 10 page guideline into 300 page legislation .

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  • In theory I'm all for not being penalised for using cards, however, retailers and online operators will always cover the fees they incur somehow.

    Will this not just result in either being factored into the retail ticket or setting a higher minimum spend to ensure that they can still charge?

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  • The guidance note on the legislation is available here if you wish to read -
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/664065/payment-surcharges-guidance.pdf

    Full legislation (relevent section page 134) -

    http://www.legislation.gov.uk/uksi/2017/752/pdfs/uksi_20170752_en.pdf

    It's fairly clear and watertight.

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