The government is stamping down on companies that charge people who pay for goods and services with credit or debit cards unfair fees of up to 20 per cent.
From January 2018 companies will be prohibited from levying unfair surcharges on everything from a takeaway to a flight, including on goods purchased on some of the biggest online retailers, such as PayPal.
Private enterprises are not the only ones who will have to absorb the costs they typically passed on to customers, as DVLA and other council-run and government-led bodies will also be obliged to comply with the new rules.
Stephen Barclay MP, the economic secretary, said: “Rip-off charges have no place in a modern Britain and that’s why card charging in Britain is about to come to an end.
"This is about fairness and transparency, and so from next year there will be no more nasty surprises for people at the check-out just for using a card.
“These small charges can really add up and this change will mean shoppers across the country have that bit of extra cash to spend on the things that matter to them.”
Emanuel Andjelic, chair of debt and advice agency Squirrel, said: “I broadly welcome the government’s initiative, as there has been a long history of firms ripping-off customers.
“My only real concern is how it will affect small businesses, such as news agents, who sometime take small payments via cards and will get charged by the provider. I presume they will have to up their prices on goods to allow for their inevitable losses.”