'Unseen' Credit Card surcharges to be prohibited

Firms will be disqualified from applying "secret" credit and debit card surcharges to drive up the value of flights, concert tickets and other commodities.

The Government has indicated it will put a end to the contentious practice by the end of 2012 following a call by the Office of Fair Trading (OFT).

The OFT had said the charges, often an additional in the ending stages of a transaction, should be stopped for debit cards - but the ban will also expand to credit cards.

Mainly retail zones will be covered and businesses will still be capable to put in a small but not unnecessary fee to cover the price of a payment technique.

Treasury minister Mark Hoban said customers should be capable to look "up front" how much they will have to forfeit.

"We want customers to be capable to shop around," he said.

"They have a privilege to know the prices they may acquire up front and not be hit through an unseen last-minute payment add-on."

A European Union ban on businesses as well as airlines from imposing above-cost extra was due to come into force in mid-2014.

But Mr. Hoban said the Government was enthusiastic to act immediately, saying it was "foremost the way in Europe by discontinuing this practice".

Consumer champion Which? Put forward a "super-protest " favored by a huge numbers of supporters to the OFT prior this year.

It maintained debit card extra fees were adding £265,000 a day to the cost of flights.

The OFT found substantial proof of companies utilizing "drip pricing" practices for extra fees online - adding payment prices to the total value only after customers have filled in a number of web pages to make their buy.

Which? Executive director Richard Lloyd, said: "The Government's conclusion to ban rip-off debit and credit card hidden charges is a great triumph for customers."