Shopify questionAnswer3 min read
Can I Add a Card Surcharge in the UK?
For sales to consumers, no. Here is exactly what the UK ban covers, the narrow exceptions, and the legal ways to cover your card fees instead.
Key takeaways
- UK businesses can't charge consumers a surcharge for paying by consumer credit, debit or charge card, or by electronic payment services such as PayPal.
- The ban comes from the Consumer Rights (Payment Surcharges) Regulations 2012, as amended, and has applied since January 2018.
- Corporate cards are outside the ban, and surcharges on methods such as cash or cheques must not exceed your actual cost.
- A banned surcharge can't be collected, and if a customer has paid one, you must refund it.
- Who it is for
- UK store owners looking at card fees
- Time needed
- 3 minutes to read
- What you need
- Your current card rates
No, not on payments from consumers. Since January 2018, UK businesses have been banned from adding a surcharge when a customer pays by consumer credit, debit or charge card, and the UK extended the ban to electronic payment services such as PayPal. The only card surcharges still allowed are on corporate cards, so for a typical Shopify store selling to the public, card costs have to go into your prices.
Store owners ask me about this whenever card fees start to bite. The rules below come from the Trading Standards Business Companion guidance, last updated April 2025 and checked on 7 November 2026. This is a practical summary, not legal advice.
What the UK ban covers
| Payment method | Surcharge allowed? |
|---|---|
| Consumer credit or debit card | No |
| Consumer charge card | No |
| PayPal and similar services | No |
| Mobile phone payments | No |
| Corporate card | Yes |
| Cash, cheque, direct debit | Only up to your cost |
The test is the payment method, not who the buyer is. A sole trader paying with a personal credit card is covered by the ban. Someone paying with a corporate card isn't, even for a personal purchase. For consumer sales, a surcharge on the remaining methods must not exceed what that method actually costs you to process. Business-to-business contracts aren't subject to that cost cap.
What happens if you surcharge anyway
Trading Standards enforces the rules. A banned or excessive surcharge can't be collected from the customer, and if it has been paid, it must be refunded. Customers can also take action themselves. Separately, the Digital Markets, Competition and Consumers Act 2024 requires any lawful surcharge to be shown upfront, not hidden until checkout. On a Shopify store, that means no app, script or checkout fee that adds a charge for paying by consumer card or PayPal.
Legal ways to cover card fees
- Price it in. Card fees are a cost of sale, like packaging. Add them to your margin model and set product prices accordingly.
- Raise order value. A fixed fee per transaction hurts most on small orders. Bundles and a free delivery threshold spread it over bigger baskets.
- Lower the rate. On Shopify Payments, UK online card rates drop as your plan goes up. Work out where the break-even sits with my free Shopify fees calculator.
- Avoid extra fees. Using a payment provider other than Shopify Payments adds Shopify's transaction fee on top, as explained in my guide to Shopify fees.
UK Shopify Payments online card rates
- Basic2% + 25p£19 a month billed yearly.
- Grow1.7% + 25p£49 a month billed yearly.
- Advanced1.5% + 25p£259 a month billed yearly.
- Plus1.3% + 25pFrom £1,800 a month.
If you also sell outside the UK
- EU and the Netherlands: the EU's Your Europe guidance says traders can't charge extra for consumer debit and credit cards. Three-party cards such as American Express and Diners Club, and business cards billed to an employer, fall outside those rules.
- Australia: the Reserve Bank of Australia concluded that surcharging on debit and credit cards should end from 1 October 2026.
- US: surcharging depends on card network rules and state law. Visa, for example, requires merchants to notify their acquirer 30 days before they start surcharging.
Quick checklist for UK stores
- No card or PayPal fee anywhere in your checkout for consumer orders.
- Delivery fees are identical across payment methods.
- Card costs are included in your product margins.
- Your plan matches your card volume, so you're not overpaying on rates. My Shopify Payments vs Stripe comparison covers the provider side.
What to do next
- Remove any surcharge on consumer card or PayPal payments.
- Recalculate margins with card fees included.
- Check your consumer rights setup while you're at it. My guide to consumer rights and returns rules covers the rest.
Free tools
Check your own store
Free, no sign-up. Each one runs a part of this guide for you.
Frequently asked questions
Is it legal to charge a credit card fee in the UK?
Not on consumer credit, debit or charge cards. The ban has applied since January 2018 and comes from the Consumer Rights (Payment Surcharges) Regulations 2012, as amended.
Can I charge a fee for paying by PayPal in the UK?
No. The UK ban covers electronic payment services such as PayPal, as well as consumer cards and similar mobile payments.
Can I surcharge business customers?
You can surcharge corporate cards. A business owner paying with a personal card is still covered by the ban, because the rule depends on the payment method.
What if a customer has already paid a surcharge?
A banned surcharge must be refunded, and an unpaid one can't be collected. Trading Standards enforces the rules, and customers can take action themselves.
Can I charge a delivery fee instead?
Yes, as long as the delivery fee is the same whichever payment method the customer uses.
Are card surcharges allowed in Australia?
The Reserve Bank of Australia concluded that surcharging on debit and credit cards should end from 1 October 2026. Check the RBA's guidance for how it applies to your business.
Sources
- Payment surcharges, Business Companion (Trading Standards)
- Payments, transfers and cheques, Your Europe, European Union
- Merchant card payment costs and surcharging: conclusions, Reserve Bank of Australia
- Regulation and fees, Visa
Related services and work
I'm a Shopify developer and CRO specialist. I have built and improved Shopify stores since 2018, completed more than 1,000 projects, and hold a 4.96 average rating across 719 client reviews.
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