Credit Card fees are now illegal…

Cashflow & Forecasts, News,

In January 2018, it became illegal to charge an additional fee for accepting payment by credit card. Despite this, there are still thought to be hundreds of small businesses that are unaware of the change in legislation.

The change of rules came in from the EU and from the UK Government, but the BBC has found a broad range of businesses that are still charging their customers an increased price to pay by credit card. These include a University, a car dealership and several Estate Agents, as well as smaller businesses.

The enforcement of the change is down to Trading Standards, but is not thought to be a priority. In 2010, it’s estimated that consumers spent £473m on such charges, according to estimates by the Treasury. It’s therefore not a trivial issue, but with media interest, hopefully it is one where awareness will increase. If the amount charged is a percentage of the sale, this can become a large amount.

If you’re still charging your customers a fee if they pay by personal credit card, they have every right to request a refund of that fee, and to report you to Trading Standards.

Payments by Corporate credit cards are not included in the legislation, and can still attract a fee.


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