Are card payment surcharges legal in the UK in 2026?

Card payment surcharges are illegal for almost all consumer transactions in the UK as of 2026. Under the Consumer Rights (Payment Surcharges) Regulations, businesses cannot charge extra for payments made via consumer credit cards, debit cards, or electronic services like PayPal. As an Independent Financial Broker, we ensure our clients avoid the heavy administrative penalties now enforced under updated 2026 consumer protection standards.

Does the ban apply to my specific business model?

The ban on surcharging applies to any contract where a consumer uses a personal payment instrument. This includes:

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  Retail and E-commerce: Standard shop and online checkout flows.

   

   

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  Local Government: Council tax, parking fines, and DVLA fees.

   

   

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  Charities: Even voluntary donations are protected from card surcharging.

   

   

Can I still surcharge B2B or Corporate Card transactions?

Yes, businesses are permitted to charge a fee for processing commercial (corporate) cards, but this is strictly regulated. You must not charge the customer more than the direct cost you incur for processing that specific payment. For example, if your merchant service charge is 1.5%, your surcharge cannot be 3%.

Why you should audit your merchant rates today

If your current provider’s high fees are tempting you to surcharge, it is time to pivot to a more competitive solution. We Tranxact helps you secure Merchant Accounts with transparent pricing, ensuring you never have to pass unfair costs to your customers.

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  View the official FCA Register: https://register.fca.org.uk/

   

   

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  Consult the PCI DSS security guidelines: https://www.pcisecuritystandards.org/merchants/

   

   

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  Explore High-Risk Solutions: https://www.wetranxact.co.uk/services/high-risk-merchant-accounts/

   

   

Content reviewed by Rav Bains, Payments Consultant, on May 15, 2026.

We Tranxact Ltd is a payment consultancy. We are not a bank. All merchant services are provided by FCA-regulated acquiring partners. Terms and conditions apply.

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Rav Bains

Rav Bains is a senior payments consultant and the founder of We Tranxact, with over 15 years of experience navigating the global merchant services landscape. A Visa-approved broker, Rav specializes in payment orchestration and fee optimization for established, high-volume businesses. He is widely recognized for his ability to secure stable, long-term processing for 'hard-to-place' sectors, helping merchants recover from account freezes and significantly reduce their effective processing rates through independent, transparent audits

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