Carl Churchill, Managing Director of NetPay Solutions Group, says:
“Implementing a surcharge for people using debit or credit cards becomes illegal on 13th January, 2018. It is important that retailers and other businesses which take card payments are aware of this change in law. Whilst consumers often snubbed surcharging, the process will soon also be illegal so those breaking the law may face penalties.
There are bound to be examples made of those flouting the law, especially with the increased likelihood of customers reporting such charges to Trading Standards – there is very little point in taking the risk.
It will still be legal to set a minimum spend on cards such as £5 or £10, which may be one way to help businesses that take smaller payments avoid absorbing the costs when surcharging becomes illegal. We are aware that many businesses are facing narrowing profit margins, the impact of living wage, rate rises and general increases in the cost of doing business and will find the charges hard to absorb and need to respond.
At NetPay we will continue to offer the opportunity for merchants to effectively manage this cost and provide competitive rates. We offer businesses the opportunity to compare costs with their current supplier, so they can see how much they would save by signing up with NetPay to offset the increase in cost.”