The new law is similar to an EU directive, which already bans surcharges on Visa and MasterCard payments, but the UK government went one step forward and banned surcharges on American Express and PayPal too.
According to estimates by the Treasury, surcharges values in the UK have reached GBP 437 million. Currently, airline companies, food delivery apps, and small businesses typically add a fee for card payments. BBC reports that the change in the law will make some businesses bump prices in order to cover the extra costs they bear with card payments.
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