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Firms won't be able to charge you for paying by card from this date

A new law comes into place soon

There'll be no charges for shopping by credit card soon

Good news for shoppers! From Saturday, January 13, a new law comes into force banning businesses from charging any fees for credit or debit card payments.

The rules will apply to any UK company selling to UK consumers. Surcharging by local councils and government agencies, such as the DVLA, will also be banned, reports the Plymouth Herald.

The changes apply for both in-store and online payments and affect American Express and other payment methods such as PayPal or Apple Pay.

The law also follows a European Union directive, meaning companies across the EU will also be banned from applying this surcharge.

Current rules state that companies should only charge customers what it costs them to process a debit/credit card.

They shouldn’t make profit from this.

However, it’s been suggested that banning this surcharge will lead to businesses, especially smaller ones, to increase their prices.

Andrew Hagger, a consumer finance expert at Moneycomms, a personal finance consultancy, told the Financial Times : “It’s a good move, although long overdue, but there is the downside as this revenue that companies have been used to getting will disappear, so what do they do?

“They will likely look to recoup it elsewhere.

“I don’t think they’ll take it lying down, so it could mean an increase in the cost of services. It’s a bit of a sting in the tail for the consumer.”

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