From yesterday, the fees charged to businesses on credit card transactions will be capped at 0.30%, well below the previous average charge of 0.85%. The debit card fees are now limited to 0.20% of the transaction value, which is just about at the previous average level of charges of 0.21%.
The Consumer Rights (Payment Surcharges) Regulations 2012 still allow a business to make a charge for credit or debit card payments; however, if the customer has to pay a surcharge for using the credit or debit card then that surcharge must not be higher than the cost the business has to pay for processing that method of payment.
Businesses may still also charge booking fees and administrative fees as long as these fees remain constant irrespective of the method of payment. For example, the booking fee will be £10 whether payment for the booking is paid by cash or by a credit card.
No doubt Trading Standards will shortly be swamped with claims that businesses are ripping-off customers by making unjustified and unfair charges for payment by credit cards, particularly where there are no charges for using debit cards.
