For a long time in Britain, consumers have always been surcharged for using credit or debit cards to pay for goods and services. These additional fees have always been used to earn profits by shops and stores, restaurants and hotels, airlines and government agencies such as councils. The use of credit and debit cards as a payment method is a practice that has become popular in the British economy and has been adopted by a multitude of consumers over the past decade.
Briton Consumers heaved a sigh of relief when the British Government ameliorated the situation by imposing a ban on these surcharges; this change would be effected starting 13th January, 2018. As espoused in Business Insider, the British government termed the credit and debit card fees as a ‘Rip-Off’ which they sought to alleviate. As a matter of fact, the Treasury’s Economic Secretary, Stephen Barclay, vaunted greatly for this action and stated that the paradigm shift was necessary in the modern British economy that sought to achieve fairness and transparency.
By taking this commendable and ingenious step, the Government envisages protecting its citizens from being swindled and defrauded by the unscrupulous service providers who, since time immemorial, have marred the British economy. By dint of this ban, the consumers are assured of saving huge amounts of money per annum.
Despite being cordially welcomed by Consumers, the move to ban credit card fees is an ostensible below-the-belt blow for the Service providers in Britain. This is because the surcharges have been an indispensable essence for these service providing companies; a classic example of the importance of surcharges was exhibited in 2010 when the additional fee grossed up to £437 million for service providers that financial year. Consequently, to mitigate and compensate for the anticipated losses, it won’t be a surprise to see these companies raising the prices of commodities or raising the limit for card expenditure.
Scrapping off the surcharge fees is certainly good news for consumers all over Britain as it comes at a time when the whole global economy is faced with inflation. The ordinary consumer will definitely have the confidence to shop without his financial muscles being torn by the aggravating card fees.