UK customers have been warned to expect price rises as companies try to recoup losses when extra charges added to payments made by card for goods and services are outlawed.

Fees for payments using credit cards are routinely levied on everything from low-cost flights and tax bills to cinema tickets and takeaway meals, but the UK Treasury says they will end in January 2018.

The move builds on an EU directive.

 

The practice, known as surcharging, is common practice across the country, with many businesses and organisations charging people to make card payments or for using other services. 

 

The government previously calculated that credit and debit card surcharges totalled between GBP316 million and GBP630 million in 2010. It suggested a “best estimate” of around GBP473 million for that year.

 

However, Guy Anker, managing editor of the MoneySavingExpert.com web site warned: “We expect some companies will raise prices to compensate for the loss, which could hit those who currently pay in cash or by debit card.”