Legislation aims to swipe out extra credit card charges

Consumers could see an end to excessive surcharges incurred when paying by debit or credit card under government plans announced today.

Companies face a ban on making a profit by charging extra fees for card payments above the cost they incur in processing the transaction.

The proposals, which go out for consultation on Monday, will mean firms which treat customers fairly are not disadvantaged by rivals who use less transparent practices to “lure” people in, the Department for Business, Innovation and Skills said.

Consumer Affairs Minister Norman Lamb said: “It can often be frustrating when purchasing a product or a service online, to find out only towards the end of the transaction that the final price is much higher due to things like payment surcharges.

“These proposals will stop companies from adding on these excessive charges.”