HM Treasury bans card surcharges
It has been announced that HM Treasury is introducing new rules that will ban businesses from adding surcharges onto credit and debit card payments.
The practice, which critics argue is unfair as charges are often added at checkout, is thought to have generated businesses £473 million. The Government has said that it will help retailers to adapt before the ruling comes into effect on 13 January 2018.
Below is comment from Laurent Dhaeyer, managing director of Secure Trading, the online payments expert, arguing that the ban will be great for consumers and will make it even more important for merchants to have transparency and clarity in the services they use.
“The transparency created by the scrapping of card surcharges will bring about a sigh of relief from the millions of consumers across the country who have previously been hit by unpleasant charges at the end of the booking or purchasing process. Businesses claim that the charges are to cover processing costs, but the consumer really has very little idea as to what they are actually paying for. Following the ban, however, it will be a case of ‘what you see is what you pay’, making it easier for consumers to accurately compare prices and avoid any nasty shocks when it comes to payment.
“Merchants will have to adjust to this change to ensure they are not losing out. It will become more important than ever for them to have a comprehensive understanding of the payment services they are using and their associated costs. To keep ahead of competition, payment providers will need to be as transparent as possible, which should allow merchants more clarity when negotiating for the most cost effective and tailored package possible.”
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