Government bans “excessive” card surcharges - Credit cards - News - Moneyfacts

News

Government bans “excessive” card surcharges

Government bans “excessive” card surcharges

Category: Credit cards

Updated: 08/04/2013
First Published: 08/04/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The cost of booking flights, train seats or concert tickets is to become less painful for consumers, thanks to a new Government ban on large surcharges.

Up until last Saturday (6 April), retailers and businesses had been allowed to impose hefty charges for debit and credit card payments, particularly online transactions. Airline companies were found to be the worst offenders, with passengers incurring up to £350 million in surcharges for booking flights during 2010.

Figures from the Office of Fair Trading (OFT) revealed that consumers were being charged over 50p for making transactions on their credit or debit cards.

Under the new rules, companies will only be permitted to charge a small amount to warrant the cost of processing the payment. Small businesses and those which have launched very recently will be exempt from the ruling, however, until June 2014.

Selected firms, such as those in financial services, property, healthcare and social services may also be excluded from the ban.

The Government was due to pass the ruling next year, but bought it forward due to concerns by consumer groups that the charges were ripping off customers.

What next?

Compare the best credit cards
Compare credit cards with 0% purchase rates
Compare 0% on balance transfers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Top credit cards for Christmas spending

‘Tis (just about) the season to be jolly, but before all that festive fun begins, chances are you’ve got a bit more shopping to do. But, if you’re turning to credit to fund things, you’ll want to use cards that offer 0% interest deals on purchases.

Spooky reality of high balance transfer fees

Credit card debt is scary at any time of year. While most might assume that opting for the longest deal on offer would save them the most, our data shows some of the longest deals can actually work out to be the most expensive.

Reward credit cards that become ‘pointless’

If you regularly use cards to pay at the till, you may have considered opening a reward credit card to earn points every time you spend. However, not all of these cards are as rewarding as they may seem…
 
Close