Ban on card surcharges comes into force

Ban on card surcharges comes into force”

A long-awaited ban on card surcharges has been welcomed by consumer groups amid advice to shoppers that they should be aware of retailers attempting to find ways around it.

A BAN on rip-off credit and debit card surcharges comes into force today.

In practice, this means you can not be charged more for paying by card instead of cash in a local shop, or for choosing to pay online with a credit card instead of a debit card.

Businesses usually say the surcharge is to cover the cost of processing a card payment.

Although payments using debit and credit cards are managed in the same way, most banks see more risk in sending a credit payment as opposed to debiting money directly from your account, and so they charge higher interchange fees.

John Glen, economic secretary to the Treasury, said: "It's completely unfair for someone to be hit by a hidden fee just before they are about to make a purchase, so by scrapping these rip-off charges we are helping to give power back to the consumer".

The ban is effective across the European Union from Saturday 13th January 2018 and will apply to all purchases made where the banks of the consumer and retailer are within the EEA.

Companies will still be able to add booking or administration fees as long as they also apply to other forms of payment and they can still set a minimum card payment.

GettyCredit card charges Just Eat have been criticised for a new 50p service charge
GettyCredit card charges Just Eat have been criticised for a new 50p service charge

Surcharges cost Brits around £166 million a year but today's ban will make it unlawful for retailers to charge these fees.

But it comes amid concerns that the cost of goods and services may creep up, or additional fees added by retailers, to compensate for the changes.

Essentially, the only thing that is now different is that companies are no longer allowed to pass these extra charges on to their customers; consumers must pay the same price for goods and services whether they choose to pay with cash or with plastic.

"As of 8 January 2018 we have made a change to the way restaurants are charged to process Just Eat orders - a 50p service charge will be implemented for all orders".

The surcharges have been commonly added by businesses ranging from takeaway apps to global airlines on customers who pay by card or use other services such as PayPal.

If you realise after a purchase that you have been wrongly charged, you can complain to the company and ask it to refund the charge.

Q. What happens when we leave the EU?

Like this



14 January 2018
West Virginia vs. Texas Tech College Basketball Predictions 1/13/18
But while TCU followed the home loss to the Mountaineers with two more losses to Kansas and Oklahoma, they rebounded in a big way. His presence makes the game plan change tremendously for other teams and that curveball puts them over the top in Lubbock.

14 January 2018
Dua Lipa beats Ed Sheeran in Brit Awards 2018 nominations
Liam Payne wants to build a bar in his house to hold his awards. "This is where I am from so it it's extra special". "I love it. We all needed a break, it got a bit insane at one point. "Everyone is doing so well, don't fix it if it's not broken".

14 January 2018
Rohr Delighted With England Friendly
His Nigeria counterparts Gernot Rohr said the tie was big enough to test the Super Eagles' readiness for the World Cup. Before the June friendlies, England will also travel to Holland on 23 March and face Italy on 27 March at Wembley.

14 January 2018
Fortnite Gets an Update with a New Trap, Shadowplay Highlights, and More
But as with the original recovery items in the game, none of these have ever been able to heal multiple players at once. Meanwhile, the issue that was causing players to pass through recently built and edited structures has been dealt with.

14 January 2018
Tired Chelsea held 0-0 at home by lively Leicester
Their historice third consecutive 0-0 draw in all competitions was undeserved, and for all the wrong reasons. In short, Hazard looks exhausted from carrying the Blues attack nearly all on his own.

14 January 2018
After Wet Winter Storm, Thomas Fire Declared 100% Contained
The fire killed at least: Virginia Pesola , 70, of Santa Paula and Cory Iverson, 32, a firefighter from San Diego. The 281,893 acre Thomas Fire in southern California is now 100% contained, after starting on December 4th.

14 January 2018
Centurion Test: Proteas suffer mini collapse after solid start
The last game was pretty good, apart from one dropped catch from Shikhar in the first innings, which we looked at as a team . He would have wanted to kick himself, though, having cut well against Ashwin all day before getting one wrong.

14 January 2018
Ameriprise Financial Inc. Increases Position in Essent Group Ltd. (ESNT)
Alliancebernstein Limited Partnership has invested 0.1% of its portfolio in Essent Group Ltd. (NYSE:ESNT). (NASDAQ:FB). Exchange Management Inc holds 0.22% of its portfolio in The Southern Company (NYSE:SO) for 13,646 shares. (NASDAQ:FB).

14 January 2018
Troopers deal with fatal crash in Madison County
The report says his vehicle continued onto the east shoulder of the roadway before striking a tree and rolling several times. All northbound lanes are closed at this time and traffic is being rerouted off State Road 207 to USA 1, according to FHP.

14 January 2018
Jayhawks hold on to win over K
Last year, it was a missed traveling call on the Jayhawks' Mykhailiuk that cost them a win over the Wildcats' biggest rival. Kansas came out ready to go in the second half as they jumped out to a 49-39 lead following a Graham three point basket.