With effect from 13th January 2018 traders will be banned from
charging consumers any surcharges based on the consumer's
payment method on nearly all retail transactions within the EEA
courtesy of the Payment Services Regulations 2017.
The Payment Services Regulations implements the second EU
Payment Services Directive (which contained a prohibition on
surcharges for the use of credit and debit cards in consumer
transactions) but the UK Government has gone further than the
Directive in the Payment Services Regulations and included within
this prohibition other forms of electronic payment such as
PayPal.
The rationale for the ban is that it should go further in
protecting consumers, helping to ensure a level playing field for
all types of payments and transparency on price, which in turn
should assist the EU's goal of a harmonised single digital
market.
