Can UK Businesses Charge a Fee for Card Payments? (2026 Rules)

Card fees eat into your margin, so it's tempting to pass them on with a little "+2% for cards" sign by the till. In the UK, for most customers, you can't. Since 13 January 2018, it's been unlawful to charge consumers extra for paying with a debit or credit card, PayPal and similar payment methods.

There are a few exceptions, though, and some perfectly legal ways to cover your costs. Here's what you can and can't do.

The short answer

This is general information, not legal advice. If you're unsure, check the government's guidance or speak to Trading Standards.

The 2018 ban explained

The rules come from the Consumer Rights (Payment Surcharges) Regulations 2012, as amended in 2018. When the ban came in, the government said surcharging had cost UK consumers £166 million in 2015, and that some retailers were charging far more than their actual costs.

The ban covers consumer debit and credit cards, charge cards and other payment methods such as PayPal. It applies however you take the payment: in a shop, online or over the phone. It doesn't matter how small your business is.

Customers who are charged an unlawful surcharge are entitled to a refund, and Trading Standards can take action.

Business cards: the exception

If a business customer pays you with a genuine commercial card, such as a company credit card, you can add a surcharge. But it can't be more than the cost you actually pay to accept that payment.

A few points to watch:

• It's the card that counts, not the customer. A sole trader buying for their business with a personal credit card is still using a consumer card. You can't surcharge it.
• Work out your real cost. Use your provider's rate for commercial cards. Paymentsense, for example, quotes 1.99% on business cards in its example pricing. If that's your rate, a 1.99% surcharge is the most you could justify.
• Make it clear. Tell the customer before they pay.
• Check your provider can tell the difference. Your terminal or software needs to identify commercial cards reliably. If it can't, surcharging becomes risky.
• Card scheme rules apply too. Your provider's terms may add their own conditions.

For most small businesses that sell to the public, it's simplest not to surcharge at all.

What you can do instead

The ban stops you adding a fee for using a card. It doesn't stop you running your business sensibly.

Set a minimum spend for cards. The Association of Convenience Stores notes that the rules don't stop retailers enforcing a minimum spend for a payment method, such as £5 or £10. Put up a clear sign. Bear in mind that customers increasingly expect to pay by card for anything, so a high minimum may cost you sales.

Stop accepting a particular card. You don't have to accept every card. If Amex costs you too much, you can choose not to take it. Tell customers clearly.

Price for your costs. Card fees are a business cost like rent or electricity. Build them into your prices rather than adding them at the till.

Choose a cheaper provider. It's often the easiest win. Going from 1.75% to 0.99% on £5,000 a month saves £38 a month, before any monthly fee.

Encourage cheaper payment methods. Some providers have lower rates for certain methods. Revolut, for example, charges 0.5% for Revolut Pay in store on its Terminal, against 0.8% + 2p for UK consumer cards.

What about cash discounts?

Offering a discount for cash is different from charging extra for cards, but it's a grey area if your "discount" is really a surcharge in disguise. If your normal price is £10 and card customers pay £10 while cash customers pay £9.50, that's a discount. If your sign says £9.50 and card customers are asked for £10, that looks like a surcharge. Keep it simple and honest, and if in doubt, don't.

Surcharging by sector

• Retail and hospitality: almost all customers are consumers, so surcharging isn't allowed. Build costs into prices.
• Trades: if you work for homeowners, no surcharge. If you invoice a company that pays with a corporate card, you can pass on your actual cost.
• Wholesale and B2B: surcharges on commercial cards are allowed, capped at cost, and must be clearly shown.
• Taxis and private hire: fares are often set by the local council. Check your licensing authority's rules alongside the surcharge rules.

A quick example: covering card fees without a surcharge

A gift shop takes £4,000 a month, mostly by card, at 1.75%. That's £70 a month in fees. Rather than adding a surcharge, the owner could:

• Switch to a lower rate. At 0.99% plus a £19 monthly plan, the same takings cost £58.60.
• Nudge prices. On an average sale of £16, adding 30p to the price covers the fee comfortably, and few customers will notice.
• Set a sensible minimum. A £3 card minimum on small items stops the fixed fee from eating the margin on penny sweets, if the provider charges one.

All three are legal and none involve awkward conversations at the till.

What to do if you've been surcharging

If you've been adding a fee for consumer card payments, stop now. Take down any signs and update your till or online checkout. If customers ask for a refund of a surcharge they paid, it's best to refund it.

FAQs

Is it illegal to charge extra for card payments in the UK?

For consumers paying with personal debit or credit cards, PayPal and similar methods, yes. The ban has applied since 13 January 2018.

Can I charge a fee for credit cards but not debit cards?

No. The ban covers both consumer debit and credit cards.

Can I set a minimum card spend?

Yes. A minimum spend for card payments isn't a surcharge, so the ban doesn't stop it. Make sure it's clearly displayed.

Can I surcharge business customers?

You can surcharge genuine commercial card payments, but only up to your actual cost of accepting them, and you must make it clear.

Can I refuse to take Amex?

Yes. You don't have to accept every card type. Just let customers know before they get to the till.

Who enforces the surcharge ban?

Trading Standards has enforcement powers, and customers are entitled to a refund of any unlawful surcharge.

Does the surcharge ban apply to online sales?

Yes. It covers shops, websites, apps and phone sales alike, so you can't add a card fee at an online checkout for consumers either.

Can I charge more for using a card over the phone?

Not to consumers. The ban applies however a consumer pays, including card payments taken over the phone.