The Department for Business, Energy & Industrial Strategy has published a paper on the Consumer Rights (Payment Surcharges) Regulations 2012 (the Regulations). The paper contains updated guidance on the Regulations.

Historically, some merchants have opted to charge customers for the use of some payment methods. In 2012, the EU prohibited traders from charging consumers fees that exceed the cost to the trader of using any particular payment instrument. However, this restriction has had limited effect and as a result the EU adopted a Directive in 2015 (the revised Payment Services Directive) requiring Member States to ban surcharges on consumer credit and debit cards from 13 January 2018. The UK Government has decided to go further in protecting consumers by including other payment instruments, such as PayPal, within the prohibition. Commercial transactions are not covered by the ban, but are now subject to the prohibition on charging fees that exceed the cost of accepting the payment method.

View The Consumer Rights (Payment Surcharges) Regulations 2012, 4 December 2017