Credit and debit card charges to be scrapped in EU directive

Consumers will be spared the burden of added credit and debit card charges from January 2018, the UK government has announced.

Following an EU directive which will come into force at the beginning of next year, businesses will be barred from adding extra surcharges for payments via cards.

Some fees for card payments can be as high as 20%, with airlines and food delivery sites said to be particularly harsh on consumers’ pockets.

Several EU countries have already implemented the ban on extra charges, including France, Germany and Italy.

The Treasury confirmed the scrapping of fees will apply to payments made with Visa, Mastercard, Paypal and American Express cards.

Some fees for card payments can be as high as 20%

Many local and government agencies have also been previously criticised for charging customers for the use of credit and debit cards, including the DVLA.

Consumer groups have hailed the decision to do away with the fees, including Which?, who had been involved in an online campaign to combat firms charging customers.

Gareth Shaw, head of Which? Money Online, said: 'This welcome news is long overdue. Which? has been campaigning for an end to unfair card surcharges for years now, and triggered the process of reform with our super complaint back in 2011.

'Previous action to protect consumers from excessive card surcharges has been difficult to enforce, leaving consumers paying over the odds just for paying by card. These new rules will finally put an end to this unfair practice.'