UK Ban on Payment Surcharges: No Extra Fees on Cards or PayPal
Since 13 January 2018 it has been unlawful in the UK for retailers to charge consumers extra for paying by debit card, credit card, or other payment methods including PayPal. The ban was implemented under the Consumer Rights (Payment Surcharges) Regulations 2012 as updated by the Payment Services Regulations 2017 (PSD2). Merchants cannot pass payment processing costs to customers via surcharges.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
The UK implemented a broad ban on payment surcharges for consumers on 13 January 2018, going beyond the EU's PSD2 requirement by also prohibiting surcharges on PayPal and other payment methods. Retailers cannot charge consumers extra for using debit cards, credit cards, or alternative payment methods. The ban applies to most consumer transactions; for payments outside the EEA, surcharges may be permitted up to the cost of processing. Trading Standards can take enforcement action, and consumers may claim refunds for unlawful surcharges. Magical Fees is not used to add payment surcharges in the UK—merchants selling to UK consumers must absorb processing costs or reflect them in base prices.
Fee schedule by jurisdiction
1 jurisdiction with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| United Kingdom | Surcharges banned on consumer card and PayPal payments |
United Kingdom
Surcharges banned on consumer card and PayPal payments
Debit cards, credit cards, PayPal, and other payment methods when charged to consumers
In force since 13 January 2018. No extra fees for payment method.
Enforcement
Trading Standards may take civil enforcement action. Consumers can claim refunds for unlawful surcharges or pursue legal action.
Official sources
Related guides
Step-by-step guides for charging uk payment surcharge ban on Shopify.
How to Add a Credit Card Surcharge on Shopify
Learn how to add credit card surcharges on Shopify. Understand payment rules, stay compliant, and recover transaction fees with an app.
How to charge a credit card payment method fee with Magical Fees
For Shopify Plus (Plus plan)This feature is fully supported for merchants on Shopify Plus using the Plus plan. In the app admin, click Create Fee.
Shopify compliance
This fee is conditional — legality varies by jurisdiction. Merchants must verify whether their state or region permits this fee before enabling it. Shopify requires clear disclosure of any additional charges at checkout.
This information is maintained by the Magical Apps team and reviewed annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- Consumer Rights (Payment Surcharges) Regulations 2012 (as amended); Payment Services Regulations 2017
- Country
- United Kingdom
- Jurisdictions
- 1
- Category
- Regulatory Surcharges
Explore UK Payment Surcharge Ban in practice
See how to automate this fee on Shopify and browse other regulations in this category.
Related use cases
Set up with Magical Fees on Shopify.
More regulatory surcharges
Other regulations in this category.
Australian Payment Method Surcharges
Australia allows payment method surcharges but caps them at the merchant's actual cost of accepting that payment type. The ban on excessive surcharges applies to Visa, Mastercard, and EFTPOS; American Express, PayPal, and BPAY are not regulated. The ACCC enforces compliance.
View fee schedule →CanadaCanadian Payment Method Surcharges
In Canada there is no federal ban on payment method surcharges. Merchants commonly add surcharges for credit card, PayPal, Klarna, and other alternative payment methods with clear disclosure. Card network and payment provider rules apply.
View fee schedule →GermanyGermany Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Germany cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by German consumer law.
View fee schedule →SpainSpain Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Spain cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Spanish consumer law.
View fee schedule →European UnionEU VAT for E-Commerce (OSS and IOSS)
Reference for EU VAT rules for e-commerce: the One-Stop Shop (OSS) for distance sales within the EU and the Import One-Stop Shop (IOSS) for low-value imports (consignment value ≤ €150). Non-EU sellers must register and charge VAT; merchants often display it as a separate line at checkout.
View fee schedule →FranceFrance Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in France cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by French consumer law.
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