Rejoice! Soon It'll Be Illegal For Companies To Charge You Extra For Using A Debit Card

Say goodbye to shady "Transaction" fees

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Rejoice, for as of January next year, all extra charges relating to using your credit or debit card to make purchases will be outlawed.

According the BBC, the worst offenders when it comes to adding on sneaky card charges are airlines, food delivery apps and small businesses and Chris Evans, with British consumers spending £473m on added charges in 2010 alone.

We're not sure why they chose 2010 as a year, but there you go... it's still a lot.

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The decision follows a directive from the European Union (remember that?), which bans surcharges on Visa and Mastercard payments.

However the government has gone one step further, by also banning charges on American Express and Paypal too.

It's Pele holding up a massive credit card

The BBC reports that banks usually charge big businesses between 10 and 20 pence for debit card transactions and 0.6 percent for credit cards, while companies like Hungryhouse and Just Eat add 50p to the bill for paying by card, although in some cases the charge may be paid by the restaurant.

Many local authorities also add charges of around 2.5%. The DVLA - which charges a set fee of £2.50 for a card -will also have to change its policy, having made £42m from such fees since 2012.

However will they manage?

Guy Anker, managing editor of MoneySavingExpert.com, told the Guardian: "We expect some companies will raise prices for all to compensate for the loss, which could hit those who currently pay in cash or by debit card."

Let us die on that hill, Guy.