Burton shoppers could save hundreds of pounds as companies will no longer be able to charge people more just for using a credit or debit card, according to the town’s MP.

Currently companies, from takeaway apps to airlines, often place a surcharge on customers who choose to pay by card and it has been estimated these charges cost UK customers £473 million in 2010.

The government announced last week that there will now be an end “to the rip-off practice” of companies charging customers more just for using a credit or debit card.

From January next year customers who use their card will see no additional costs compared to those using other payment methods and companies which are found continuing to charge customers for card payments will be forced to pay the fees back or expect a heavy fine.

Burton MP Andrew Griffiths has welcomed the move. He said: “Many of us at some point will have been caught out and left puzzled by these additional costs so it is very welcome the Government is taking action.

“Today, when more and more transactions are done online and by card it seems ridiculous that customers can be hit unfairly in this way.

"I am glad the Government is bringing this practice to an end and this will ultimately mean people are able to spend more of their money how they want to.”

What does the ban mean?

Shoppers could find themselves with a little extra cash in the bank next year after the changes were agreed by the MPs.

This means that from January 13, 2018, businesses cannot penalise customers for choosing to pay by card when they are shopping in the store or online. The current rules, which came into force in 2013, allows companies to only charge what it costs them to process a debit or credit card payment, as they should not make a profit from it.

However, shoppers are still facing hefty charges with fees typically about two per cent and on some smaller transactions can be as high as 20 per cent of the bill.

The new rules will mean that all surcharges are banned and will apply to any UK company which is selling to UK consumers.