12/01/2018
New regulations ban retailers from surcharging customers’ payments (UK)
Retailers will be banned from surcharging their customers for using debit or credit cards or any other payment method from 13 January, when a provision in the Second EU Payment Services Directive is transposed into UK law by an amendment to ‘The Consumer Rights (Payment Surcharges) Regulations 2012’.
Set out in Schedule 8, Part 3, Para 12 of ‘The Payment Services Regulations 2017’, the amendment strengthens current rules, which only ban surcharges that exceed the cost of the payment method that the customer is using. It will apply to all customer transactions completed in shops, at customers’ homes or by mail order, internet, telephone or fax.
Retailers will, however, still be able to impose a minimum spend before accepting a payment method or offering free deliveries and can stop accepting certain card payment methods completely. They can also still charge for the use of an ATM.
While a payment surcharge will still be permitted for business to business transactions, such as wholesaler to retailer, the permitted amount will be limited to recovery of the costs of all payment methods, including cash, debit and credit cards and pre-paid cards. Banking charges are not covered by the new rules.
Where fees are charged in contravention of the regulations, any requirement that the fee should be paid will be unenforceable so the customer is under no obligation to pay it. If it has already been paid, it will be refundable.
‘The Consumer Rights (Payment Surcharges) Regulations 2012: Guidance’ was re-published in December, 2017 to provide updated guidance on the regulations. It supersedes guidance first issued in March 2013 and updated in August 2015.
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
Keep up to date with the latest news by following us on social media:-
Watch the video to find out how CPA can help you!
Read our blog – Debt collection agency
Read our Cash Flow Advice
Read about our overdue account recovery service
Read our blog – What is credit management?
Read our blog -What is a credit management company?
Read our blog -Credit Management that works!
Read our blog – How to select a debt collection agency
click to see read about our successes
Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.