Credit Card Surcharges

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capital0ne
capital0ne Posts: 872 Forumite
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in Credit cards
Companies are no longer allowed to add a surcharge for a payment by credit card? That is correct isn't it? When was this introduced? I think it was only a few months ago?

Thanks

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  • eskbanker
    eskbanker Posts: 31,076 Forumite
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    13 January: https://www.moneysavingexpert.com/news/cards/2018/01/cards-fees-to-be-banned-from-saturday

    Some exceptions though, such as business cards and payments relating to contracts formed before that date (e.g. 2018 holidays booked in 2017), and, as per the article, many companies introduced admin fees instead that are legal if applying across all payment types....
  • Kingfishers
    Kingfishers Posts: 1 Newbie
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    Can anyone tell me, if a company is a member of the CAE or Commercial Agent Exemption,, so they act as a middle man, are they exempt from the new law regarding charging for use of credit cards? In other words, are they still permitted to charge a fee for accepting credit card payment, because they are a commercial agent?
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    Kingfishers wrote: »
    Can anyone tell me, if a company is a member of the CAE or Commercial Agent Exemption,, so they act as a middle man, are they exempt from the new law regarding charging for use of credit cards? In other words, are they still permitted to charge a fee for accepting credit card payment, because they are a commercial agent?

    They can if they charge the exact same fee for all other methods of payment.
    (Are they based in UK)
  • capital0ne
    capital0ne Posts: 872 Forumite
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    Followup from the info above, the exact situation is this.

    I get my car insurance through a local broker, get great service so I just want to be abslolutely sure of my ground here.

    Renewal Premium is £163, Intermediary Fee is £6.00 and Legal Expenses £20.00 total is £189. I'm okay with that.

    In their renewal letter Payment Methods Available:

    Cheque - £189
    Cash - £189
    Credit card - £189 and a 2% charge will be added
    Debit card - £189 No additional charge

    So is the 2% charge allowed under the new rules for credit cards?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    No. .
  • molerat
    molerat Posts: 31,866 Forumite
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    Possibly an old template that has not been updated but still very silly of a strictly regulated company not being on the ball.
  • capital0ne
    capital0ne Posts: 872 Forumite
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    Thanks everyone, when I go to pay I'll point this out to them. In the past I've always paid by debit card, besides this they do a really good job.

    I'll update this thread when I've paid.
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