Short answer: no - you cannot charge customers extra for paying by consumer debit or credit card in the UK, and that has been the law since January 2018. But minimum card spends are legal, cash discounts are legal, and business cards are a genuine exception. Here is where the line actually sits, and what to do about fees instead.
The rule: no surcharges on consumer cards
Since 13 January 2018, UK businesses cannot add a surcharge for payments made with consumer debit or credit cards - that includes Visa, Mastercard and Amex consumer cards, and applies in person, online and over the phone. The ban came from the Consumer Rights (Payment Surcharges) Regulations, updated when PSD2 landed.
That 50p 'card fee' some takeaways still add to a card payment? Not legal on consumer cards. Trading Standards enforces it, and beyond the legal risk, customers know the rule well enough now that a sneaky surcharge reads as a reason not to come back.
What you CAN legally do
The ban is narrower than most people think. All of these remain perfectly legal:
- Minimum card spend: '£5 minimum on card' is allowed - you can refuse small card payments entirely. Just display it clearly before the till.
- Cash discounts: charging less for cash is legal (it's framed as a discount, not a surcharge). Same maths, different direction, different legal outcome.
- Surcharging business and corporate cards: commercial cards are outside the consumer ban - you may pass on your actual cost, and no more. Most small businesses don't bother because tills can't reliably tell card types apart.
- A genuine booking or service fee that applies however the customer pays - it just cannot vary by payment method.
The smarter fix: cut the fee, don't pass it on
The urge to surcharge usually means your card fees feel too high - and that's fixable at the source. A typical shop doing £5,000 a month on cards at 1.75% pays £87.50; at a negotiated 1.4% it's £70, and the gap widens with volume. That's the surcharge you wanted, recovered without annoying a single customer.
Two minutes in the fee calculator with your real turnover shows what each provider would actually cost you - and if you haven't reviewed your rate since signing up, here's how to cut it. Minimum spends handle the painful end (a 1.69% fee on a £1.20 chocolate bar genuinely hurts); better rates handle the rest.
What about 'card machine surcharge' apps and settings?
Some terminals and POS apps still ship with a surcharge feature - usually built for markets outside the UK where surcharging is legal. The feature existing on your machine does not make it legal to use on UK consumer cards. If a provider's rep suggests switching it on to 'offset fees', that tells you something about the rep.
The exception you'll see in the wild: business-to-business suppliers surcharging corporate cards at cost. That's legitimate - but if you're a cafe, shop or salon serving the public, assume every card in front of you is a consumer card and price accordingly.
FAQs
Can I add a 50p fee for card payments under £5?
No - that's a surcharge on a consumer card, which is banned. What you can do instead is set a £5 minimum card spend, or price the small items so the margin survives a card fee.
Can I offer a discount for paying cash?
Yes. Discounting cash is legal; surcharging cards is not. Display it clearly and apply it consistently.
Do the rules apply to PayPal, Apple Pay and Google Pay?
Yes - the ban covers the payment methods consumers commonly use, including cards inside mobile wallets. If a consumer is paying, adding a fee for the payment method is off the table.
What happens if a business surcharges anyway?
Customers can demand the surcharge back, and Trading Standards can act. In practice the bigger cost is reputational - the rule has been in force since 2018 and customers know it.
