U.K. to Ban All Credit Card Surcharges on Purchases, Calling Them a ‘Rip-Off’

Fortnum & Mason in London

The U.K.’s Treasury Ministry announced new rules on Tuesday that would bar retailers from requiring customers to pay a surcharge when using a credit card for payment.

“Rip-off charges have no place in a modern Britain,” said Stephen Barclay, Economic Secretary to the Treasury, in a statement. “This is about fairness and transparency, and so from next year there will be no more nasty surprises for people at the check-out just for using a card.”

The U.K.’s Treasury Ministry estimates that in 2010, customers spent £473m on surcharges alone. Airfare was top of the list, as passengers were paying as high as 20% surcharges.

The move, which is expected to save consumers millions of pounds annually, is similar to bans in effect in over ten states in the United States including New York.

“‘Surcharging’ is common practice across the country – with businesses ranging from takeaway apps to global airlines charging people to make card payments or for other services such as PayPal,” the ministry said. “While many industries have acted to absorb the cost and not pass these on to consumers, these rules will bring an end to the practice entirely.”

(Photo: Accura Media Group)