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Credit card fees ban will stop customers being ripped off, says treasury minister
23 December 2011 @ 12:42

A plan to ban airlines, travel companies and retailers from charging fees when people pay by credit or debit cards will stop customers being ripped off, the Tresury minister Mark Hoban said today.

Customers are being charged as much as £12 to use their cards when they pay, though the transactions cost as little as 20p to process.

In some cases, the surcharges are higher than the value of the item being purchased.

Speaking on Radio 4's Today Programme, Mr Hoban said: "It's important that consumers know up front what charges they pay.

"What we have announced today will give consumers the transparency they need.

"I think consumers do feel ripped off and we want them to be able to shop around."

Legislation would be introduced by the end of next year but consumer group Which? is hoping companies will start being upfront about their charges from today.

Richard Lloyd, executive director of Which?, welcomed the move.

"The Government’s decision to ban rip-off debit and credit card surcharges is a huge victory for consumers.

"Given that airline passengers alone pay more than £265,000 a day in card surcharges, businesses should not drag their feet over this," he said.

"While the law will come into force at the end of 2012, we want companies to be upfront and fair over card charges today."

Read the rest of the article at the Telegraph




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