Customers will no longer be charged extra for goods or services when paying for credit or debit cards after the Government revealed these levies will be outlawed from next year.
Some firms charge customers up to 20% when paying for products such as flights or takeaways just because they use a card.
The new rules also cover charges levied by local councils and Government agencies such as the DVLA.
The Treasury estimates the total value of such surcharges at £473m a year.
The changes, due to take effect from January, are being applied as the result of an EU directive.
The Treasury said the directive banned such charges being levied by Visa and Mastercard but that it had gone further, extending it to cover other card and payment providers such as Amex, PayPal and Apple Pay.
Businesses usually tell customers they add on the charges to cover the cost of processing card payments.
The Government said that while many industries had acted to absorb these costs and not passed them on to consumers, the new rules would bring an end to the practice entirely.
The economic secretary to the Treasury, Stephen Barclay, 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.”
What do you think?
We asked people across the borough what they thought about the changes in the law…
Carol Griffiths from Mapperley said: “About time. The worst for it is HMRC in my opinion. When I pay my taxes online they charge a fortune. Gig tickets as well – their fees are terrible.
Gary, a trader in Bestwood, said: “I don’t see why we have to absorb costs when customers pay on card. It’s there choice. It made them use the high streets, which are dying, rather than be reliant on online traders.”
Peter Marsden, a student in Burton Joyce, is worried this ‘common sense’ thinking only comes from the European Union, and worries about Brexit.
He said: “It was a move brought about by the EU. They are always keen to tackle big firms trying to rip-off consumers and I worry that after Brexit, our Government will pander to the linkes of Sky, Apple and Google.”
What do you think about the end to card charges? Let us know in the comments section below…
About time. Ripped off soooo many times, More by the givernment when trying to pay off bills online. EU thing is not true though as mentioned in article – they interfere when not needed
Prices will go up now this has been dropped because profits will fall in shops. Not a good move
Good idea why does it cost different amounts at different places? Some places charged me £10 and some £2 in the past I just hope prices don’t go up online because of this as Richard has said.