Often added right at the end of a transaction,
excessive “Payment Surcharges” for using certain payment methods are
banned from 6th April 2013.
The Consumer Protection (Payment Surcharges) Regulations 2012 prohibit traders from charging consumers more than the costs they face for accepting a given type of payment, whether the transaction is concluded face to face, by telephone, or online. So although a surcharge is still permitted if the trader itself must pay that cost, an “excessive” one is not.
Keep in mind that for this to apply certain conditions must be met. Most significantly it must be a transaction between a trader and a consumer. Even then, if the trader is a small business or a new venture, it has until June 2014 to comply with the rules, and certain industry sectors are completely exempt.
The rules still permit traders to charge an administration fee or booking charge provided that this cost applies equally to all consumers irrespective of the means of payment.
With certain businesses excluded, and some administration charges permitted, the new rules may not offer quite the victory that consumer groups had been hoping for.
For more information of consumer contracts contact our Chelmsford commercial centre on 01245 216100.
The Consumer Protection (Payment Surcharges) Regulations 2012 prohibit traders from charging consumers more than the costs they face for accepting a given type of payment, whether the transaction is concluded face to face, by telephone, or online. So although a surcharge is still permitted if the trader itself must pay that cost, an “excessive” one is not.
Keep in mind that for this to apply certain conditions must be met. Most significantly it must be a transaction between a trader and a consumer. Even then, if the trader is a small business or a new venture, it has until June 2014 to comply with the rules, and certain industry sectors are completely exempt.
The rules still permit traders to charge an administration fee or booking charge provided that this cost applies equally to all consumers irrespective of the means of payment.
With certain businesses excluded, and some administration charges permitted, the new rules may not offer quite the victory that consumer groups had been hoping for.
For more information of consumer contracts contact our Chelmsford commercial centre on 01245 216100.
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