The UK government is cracking down on firms enforcing "excessive" surcharges when customers use their debit and credit cards.
The ban comes into effect immediately and is designed to stop companies from charging more than it costs them to process card payments, says the Department for Business, Innovation and Skills.
It has been common practice to add charges of up to two per cent on card purchases in industries such as airline travel, rail, event tickets, cinemas and hotels – a practice that the DBIS calls "unscrupulous".
Consumer Minister Jo Swinson said: "The practice of excessive payment surcharges has been ripping off consumers for far too long…I am delighted that the ban will stop retailers from cashing in by charging add-on fees that simply do not reflect the real cost of processing the payment."
According to the Office of Fair Trading, Brits spent around £300m on payment surcharges in 2010 in the airline sector alone and a vast majority of people – around 90% – object to these fees.
Richard Lloyd, executive director for the consumer organisation Which?, added: "Over 50,000 people supported our campaign to end rip off surcharges so we’re pleased the government is implementing this ban. For it to be effective there must be a tough enforcement regime and companies must play fair and not pass costs on to customers in other ways."
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By GlobalDataMicro businesses and business start-ups will be exempt from the new regulations until June 2014, allowing them more time to prepare for the ban.
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