Posted by Gary Mackley-Smith on August 9, 2017
From January 2018, businesses will no longer be able to add any surcharges where a customer pays by credit or debit card, following an EU directive banning surcharges on Visa and Mastercard payments.
However the government has gone further than the directive by also banning charges on American Express and PayPal, as well as tackling surcharges by local councils and government agencies.
Adding surcharges to card payments is common practice and these new rules will bring it to an end, leading most likely to some industries absorbing the cost and others passing them on in headline price rises.
The government wants to bring about fairness and transparency, so that individuals will not discover they are being charged more for using a card.
The government has previously capped the costs that businesses face for processing card payments, and will engage with retailers to assess if there is any more that can be done to help.
If you would like to discuss the implications of this for your business, please contact your usual Bishop Fleming adviser.