A report by MoneySavingExpert.com has found customers are still being told they’ll be charged extra to pay by credit/debit card despite fee charges being illegal.
The new rules came into effect on 13 January 2018 and mean customers should no longer be charged a fee if they opt to pay by personal credit or debit card. In most cases, businesses are adhering to the rules, but many haven’t updated their payment information notices. However, misleading warnings may be put consumers off paying by card and result in them using another form of payment instead.
Under the law, all surcharges for paying by personal credit or debit card are now banned. This includes payment methods linked to cards, such as PayPal or Apple Pay.
Companies are permitted to still charge booking or admin fees as long as they apply to other forms of payment. Companies can still charge fees to business credit or business debit cardholders.
Trading Standards’ warning to businesses
A spokesperson from the Chartered Trading Standards Institute told MoneySavingExpert.com: “The legislation is clear that business cannot charge or advertise to charge an additional fee for consumers buying goods using a credit or debit card. Deliberately advertising additional fees could be misleading and a criminal offence.”