Firms are failing to ban credit card charges

CONSUMERS are still being charged for credit card payments despite a law outlawing the practice, it has emerged.

Councils including Lambeth and Isle of Anglesey, and a range of businesses were illegally charging cardholders for payments over the weekend, moneysavingexpert.com said.

The law kicked in on Saturday. A man who paid his council tax bill said: “Lambeth Council told me they no longer charge so I paid by credit card. And guess what – they surcharged me.”

A council spokesman said: “We apologise for any initial administrative error and will make refunds.”

Some small businesses appear to have misinterpreted the rules and were still charging customers. A cab hire firm in Glasgow said it would charge a 50p service fee, rather than a transaction fee, to non-cash payers.

East London Energy, a small greenenergy provider, admitted it continued to charge customers but has now stopped and would offer refunds.

Businesses including Premier Inn and the Student Loans Company appear to have forgotten to change their websites and were still warning card holders they would be charged.

In the week leading up to the ban The Telegraph revealed some retailers were planning to get around the rules either by refusing credit cards, increasing retail prices or introducing “service charges”. Retailers are charged a maximum of just 0.3 per cent for credit cards following an EU ruling in 2015.