The Government has said that from January next year, consumers are no longer to be charged for paying by debit or credit card; charges to be banned.
The greatest spent in charges was in 2010. Consumers spent £473m alone on charges. Not only are the government planning to ban these charges but they are going further banning charges on American Express and PayPal.
This has obviously been looked highly upon by consumers.
Airlines are among the worst offenders for adding fees for paying with card. However over the last year Monarch and British Airways, have reduced their charges, Flybe has promised to get rid of the minimum payment and cut its charges and Ryanair have said they would comply with changes in the law.
Increase in Prices
The change in law will simply mean that some companies will just put their prices up to cover extra costs. This is because the banks will charge usually around 10-20p for debit card transactions or around 0.6% charge for credit cards.
However the question has now been raised that how will the ban be policed? Businesses can actually charge an amount which reflects their own costs in processing a transaction. Although it is said many businesses are in breach of the regulations.
Call a member of our team today to discuss how we can help you manage your finances on either 0800 020 9542 or email us on firstname.lastname@example.org