With retailers enjoying a surge in online sales this Christmas,
many consumers will have incurred excessive payment surcharges to
use their credit or debit cards online.
Why are payment surcharges a problem?
Payment surcharges are additional fees rendered to a consumer
electing to use a certain means of payment, usually a credit or
debt card. The OFT and Department of Business, Innovation and
Skills are concerned that these charges have become excessive as
consumers are increasingly charged considerably more than retailers
actually incur to process the payment.
Excessive payment surcharges are considered detriment because
they can increase the total cost of products and services
significantly and can be unavoidable, particularly for consumers
paying online. In addition, charges made during the end of
the ordering process make it more difficult for consumers to
accurately compare prices.
