Stealth Card Payment Charges Are Still Illegal

Published / Last Updated on 21/01/2019

A BBC investigation into credit and debit surcharges has found that retailers, letting agents and even a university have still been breaking the law for no additional card charges being added to transactions that came into force in January 2018.

An undercover investigation found that one car dealer tried to add a 3% surcharge on a card saying it was due to the type of card machine being used, this transaction could of potentially cost the customer an extra £143.85, the car dealer later said he wasn’t aware of the legislation and would stop adding the surcharge and refund any previous customers that may have been charged a surcharge for card payments.

The University of Hull was offering students a discount of 2% if they did not pay by card of meaning students paying by card would have been paying up to an extra £170.00.

The university has since suggested this was a genuine mistake and is offering students a refund.  Even some letting agents were also found to be charging a 3% surcharge on rents paid by card and those that have been identified have since changed their policy and issued refunds.

A reports by the Treasury showed that in 2010 consumers spent £473m on card surcharges.  This, of course should now be £0.

Conclusion:  Even offering a discount for non-card payments is technically a charge for those that do use cards.  Businesses have been warned.  It is the same price, however you choose to pay. 

See BBC Article: https://www.bbc.co.uk/news/uk-england-46876577

Explore our Site

About
Advice
Money MOT
T and C