Can You Charge Customers a Fee for Paying by Card in the UK?

For personal debit and credit cards, no. Businesses cannot add a surcharge for these payment methods ^[1][2]. Commercial cards sit outside that ban, but that does not mean every surcharge is unrestricted. Where the separate cost-limit rules apply to a consumer contract, a permitted surcharge must not exceed the cost of accepting that payment method ^[2].

It's one of the most common questions owners ask once they see their card fees add up. Here's what the rules actually say, what happens if you get it wrong, and the legal ways to cover your costs instead.

What the rules say

The rule sits in the Consumer Rights (Payment Surcharges) Regulations 2012, as updated in 2018 ^[4]. In plain terms:

• You can't charge any fee for payment by a card that isn't a commercial card ^[3]. That covers everyday personal debit cards and credit cards.
• The same goes for similar ways of paying, such as PayPal-style payment services ^[2].
• For consumer contracts covered by the cost-limit rules, a permitted surcharge cannot exceed your processing cost ^[2][4].

The official guidance allows other fees, like delivery, booking or administration fees, as long as they're the same whichever way the customer pays ^[2]. So a fee that only card payers pay is still a card surcharge, whatever you call it.

What about business and corporate cards?

Commercial debit and credit cards are outside the ban ^[2][3]. It's the card that counts, not the customer: if someone pays with a corporate credit card, the rule doesn't apply even if it's a personal purchase ^[2].

For a consumer contract covered by the cost-limit rules, any permitted surcharge must be no more than your processing cost. That cost-limit restriction does not apply to genuine business-to-business contracts ^[2]. Check the applicable rules and your provider's terms before adding a commercial-card fee.

In practice this is tricky at a busy till. You need to know which card is in front of you and what it actually costs you. Get it wrong on a personal card and you've charged an unlawful fee.

What happens if you get it wrong

The customer has clear rights. If a banned surcharge hasn't been paid yet, you can't make them pay it. If it has been paid, it must be refunded, and the customer can take legal action to get their money back ^[2]. That right applies whether or not Trading Standards have also taken action ^[2].

Legal ways to cover your card costs

You can't pass card fees on as a surcharge, but you do have options.

1. Build the cost into your prices

The simplest route. Your prices already cover rent, stock and wages; card fees are just another cost of doing business. A small price change spread across the menu is usually less noticeable than a fee at the till.

2. Offer a discount for another way of paying

The law treats this differently from a surcharge. Your card provider can't stop you offering a reduction to customers who pay a particular way ^[5]. If you do this, make it clear before the customer pays.

3. Show unavoidable fees in the price

If you charge something every customer has to pay, like a booking fee, it must be the same however they pay ^[2]. Under consumer law, the total price you show should normally include unavoidable charges such as a booking or delivery fee ^[6]. Hiding them until later in the purchase, known as "drip pricing", is illegal ^[6].

4. Pay less to take cards in the first place

If your card fees feel big enough that you want to charge customers for them, that's usually a sign the fees themselves need a look. Our guide to card machine fees for cafés shows how percentage rates, pence per payment and monthly charges add up.

Credit cards often cost more to accept than debit cards; our guide to debit vs credit card fees explains why.

Where TrustPOS fits

The cleanest answer to card fees is paying less for them, legally and without your customers ever noticing. TrustPOS offers:

• Shift4 Solo: a free card machine with no monthly machine cost, at 1.25% per transaction with no authorisation fee.
• myPOS Ultra: £20 a month plus VAT, with 0.32% plus 3p on debit cards and 0.62% plus 3p on credit cards. Its card fees have a £20 monthly minimum: if the calculated fees are lower, you pay the difference.
• Shift4 Dine: a full till system for £39 a month plus VAT at 0.9% plus 2p per transaction, on a 12-month agreement.

Whether you'd pay less than you do today depends on your current charges, how many payments you take and your card mix. A comparison against your real statement is the only honest way to know.

Quick checklist

1. Remove any card fee you currently add for personal debit or credit cards.
2. Check any other fees (booking, delivery, admin) are the same whatever payment method is used, and are included in the price you show.
3. Before surcharging a commercial card, check whether the contract is with a consumer or another business, whether the cost-limit rules apply, and your provider's terms ^[2].
4. Consider a discount for your preferred payment method instead of a surcharge.
5. Review what you pay to take cards before you raise prices.

This guide explains the rules in plain English. It isn't legal advice; if your situation is unusual, check with Trading Standards or a solicitor.