Unexpected/unauthorised online payment fee - is this allowed?

Jonx999

My wife just paid a council invoice using a debit card and the council's Capita-powered online payment system. We anticipated a possible charge for using a credit/debit card so carefully checked the invoice, the council website, and each page in the payment process. There was absolutely NO mention of fees, and the figure shown on the final payment page was *exactly* the amount on the invoice.  My wife was texted a six-digit code by her bank to enter to authorise this payment.

After the main payment was taken from her bank account, however, an additional separate payment of £3.95 was taken. This extra fee does not appear on the council payment receipt she received by email.

It's only a small amount, and I guess isn't worth complaining about (apart from have a whinge here), but it was unexpected, unauthorised, and it just feels wrong.  Shouldn't such fees be clearly indicated before payment is taken, and at least appear on the receipt?  

eskbanker

Jonx999 said:

It's only a small amount, and I guess isn't worth complaining about (apart from have a whinge here)

I disagree - complain to the council and/or dispute the charge with your bank as being unauthorised.

maman

You said you anticipated a fee, why was that? Has it happened before? 🤔

I'd certainly follow it up.

We've come to accept 'booking fees' for theatre tickets etc, despite everything being online including the ticket but I've never come across it for paying bills or online purchases including insurance policies. 

Jonx999

maman said:

You said you anticipated a fee, why was that? Has it happened before? 🤔

Some organisations charge to use a credit/debit card, so we were just looking out for it.  We haven't paid a council invoice before so didn't know what to expect. 

AmityNeon

Jonx999 said:

maman said:

You said you anticipated a fee, why was that? Has it happened before? 🤔

Some organisations charge to use a credit/debit card, so we were just looking out for it. We haven't paid a council invoice before so didn't know what to expect.

Such practices are now generally prohibited as of 13 January 2018. Some services transitioned to charging the (renamed) fee for all payment methods instead (e.g. 'service' fee).

Shakin_Steve

I've paid a couple of fines to Sheffield council as my wife has a propensity to ignore signs that say "Bus Lane". Payments made through Capita and definitely no extra charge.

M25

I've paid council tax with debit and credit and never had a fee with Capita.

Are you sure the fee came from them and not for another service or item?

I can't imagine Capita not showing any fee clearly.

kaMelo

A fee can still be charged if you're paying with a business credit/debit card but otherwise they're banned.

blue.peter

The relevant legislation is Regulation 6A of The Consumer Rights (Payment Surcharges) Regulations 2012, as amended by the Payment Services Regulations 2017. This bans merchants from charging a fee in addition to the advertised price of a transaction on the basis of a consumer’s choice of payment instrument [my emphasis] (for example, credit card, debit card or e-money).

It is therefore illegal to make such a charge for the use of, say, a credit card if such a charge is not levied in respect of a payment made by another method - say, cash. However, there is nothing to prevent an additional payment charge if the same amount is payable irrespective of payment method. So it would be allowed from a legal perspective if it's levied on all payments. Of course, in this case, it would often be daft not to include it in the ticket price of an item being sold.

Having said that, you still have grounds for complaint if the additional charge was not advertised or authorised before it was taken.

p00hsticks

No experience of Capita, but as a general rule if there was a fee to be paid, I'd expect it to be added onto the main payment, not taken as a separate transaction.  

Hoenir

Jonx999 said:

We anticipated a possible charge for using a credit/debit card 

What was your reasoning?