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Credit card surcharges

Will forthcoming legislation outlaw *all* credit card surcharges or only those made to "consumers"?

Press coverage about the new legislation (announced in July this year) suggests variously that the legislation will ban *all* surcharges for payment by credit card or that it will ban surcharges to consumers.

A client makes B2B sales and a significant number of business customers pay by credit card.  Will the client be able to continue to cover its costs by passing on the surcharge to its business customers, as it does now?  

I suspect that the ban will apply to my client, as it appears to cover all "retail payment instruments", which suggests that the focus is on the method of payment and not on the type of customer.  However, the widespread attention paid to the protection of "consumers" means that the answer is not clear.  

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07th Nov 2017 18:12

It's personal cards, as I understand it.

Business cards aren't protected, though I suspect in practice it'll be so hard for businesses to police this that they won't make surcharges to them either. It just won't be worth the effort.

i'm not sure that this will benefit consumers. Businesses will just jack everyone's prices up to cover it. But it will make things more transparent - which I suspect is the intention behind it all.

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09th Nov 2017 09:07

Personal cards, as far as I know. I assume that's why HMRC are withdrawing the facility to settle tax bills using these - they won't be able to squeeze a few more quid out of you in fees!

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16th Nov 2017 10:15

The reason that the legislation was introduced is because many charged the client more than the business paid. Greed destroyed a simple mechanism. That having said what is the total cost of clearing a cheque? WE recon £35.

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16th Nov 2017 11:40

Will the charge apply to receipts through Paypal as well given peoples cards are linked to Paypal?

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16th Nov 2017 11:56

It wont affect me as I don't use card payments but instead of recharging the fee will an admin charge just not be added instead? I think the main people affected are going to be the arilines and holiday companies. Last time I booked a holiday online I was going to put it on a credit card for the potential extra protection and if I remember correctly they were going to charge over £150 in credit card fees.

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to MissAccounting
16th Nov 2017 12:41

You're right - airlines and holiday companies are noted for rip-off charges. They start with a cheap headline fee and then bulk up on the add-ons.

Only very rarely have I been asked for an extra fee for paying by card. Which shows that the costs can be built in to a business's pricing.

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