Card surcharging in the UK: the rules and what you can charge
In the UK you cannot add a card surcharge to a consumer (B2C) payment: surcharging consumer debit and credit cards has been banned since 13 January 2018 under the Consumer Rights (Payment Surcharges) Regulations 2012 as amended. You can still surcharge business (B2B) payments made on commercial cards, with no legal cap on the amount, provided you disclose it clearly before payment and set it out in your terms. So a shop or restaurant cannot pass card fees to customers, but a B2B supplier invoicing another business can, if it is agreed upfront.
The rule in one table
| Payment type | Surcharge allowed? | Cap |
|---|---|---|
| Consumer card (B2C), incl. AMEX and wallets | No, banned since 13 Jan 2018 | Not permitted at all |
| Business commercial card (B2B) | Yes, if disclosed and agreed | No legal cap |
| Non-card B2C (e.g. cheque) | Yes | No more than cost to the trader |
The line that catches most businesses out: if you sell to the public, you cannot pass the card fee on, full stop. For the detailed sole-trader and mixed-basket edge cases, see B2B vs B2C surcharging rules.
What a B2B surcharge actually costs the payer
Where a surcharge is legal (B2B), a common approach is to add the card cost back onto the invoice. Here is what a 1.75% surcharge adds across invoice sizes:
| Invoice (ex-surcharge) | 1.75% surcharge | Total charged |
|---|---|---|
| £250 | £4.38 | £254.38 |
| £1,000 | £17.50 | £1,017.50 |
| £5,000 | £87.50 | £5,087.50 |
| £20,000 | £350.00 | £20,350.00 |
Source: MerchantHQ surcharge worked example, 1.75% of invoice value
B2B only. Disclose the surcharge before payment and set it out in your terms. There is no legal cap, but a surcharge above your genuine card cost invites dispute.
View as plain-text Markdown
### B2B card surcharge at 1.75% across invoice sizes | Invoice (ex-surcharge) | 1.75% surcharge | Total charged | | --- | --- | --- | | £250 | £4.38 | £254.38 | | £1,000 | £17.50 | £1,017.50 | | £5,000 | £87.50 | £5,087.50 | | £20,000 | £350.00 | £20,350.00 | Source: MerchantHQ surcharge worked example, 1.75% of invoice value B2B only. Disclose the surcharge before payment and set it out in your terms. There is no legal cap, but a surcharge above your genuine card cost invites dispute.
Surcharge calculator (B2B)
Enter an invoice value and a surcharge rate to see the amount and the total. For consumer sales this is not permitted, so the figure is what you absorb rather than pass on.
B2B only. Consumer (B2C) card surcharging is banned in the UK.
Selling to consumers? Cut the cost instead
Because you cannot surcharge consumers, the only lever is your own processing rate. Most UK merchants pay more than they need to once fixed fees are included. Find your true all-in rate with the effective rate calculator, then have it benchmarked against the market. A rate cut applies to every future transaction, unlike a surcharge you are not allowed to add.
Frequently asked questions
Can a UK business add a card surcharge?
Only on business-to-business payments. Surcharging consumers has been banned since 13 January 2018. A B2B supplier can surcharge a commercial-card payment if it is disclosed before payment and set out in the terms; a shop, cafe or online store selling to consumers cannot.
How much can I surcharge on a B2B transaction?
There is no legal cap on B2B surcharges. The original 2012 Regulations capped consumer surcharges at cost; the 2018 amendment banned consumer surcharges entirely. B2B is unrestricted in amount but must be disclosed and contractually agreed. In practice most B2B surcharges track the actual card cost, roughly 1.5% to 3%.
Is a sole trader a consumer or a business for surcharging?
It depends on whether the purchase is for their trade or personal use. The Regulations turn on whether the customer is acting as a "consumer" (outside a trade, business or profession). A sole trader buying business equipment is B2B; the same person buying a personal item is B2C. Practical test: would the customer claim the VAT or the expense?
Does the consumer ban cover American Express and digital wallets?
Yes. The 2018 amendment closed the AMEX loophole in the original Regulations, and the ban covers digital wallets (Apple Pay, Google Pay) backed by a consumer card. Only commercial cards on a genuine B2B transaction remain surchargeable.
What can I do instead of surcharging consumers?
You cannot pass the card fee to consumers, so the lever is your own processing cost. Bring your all-in effective rate down and the fee stops eroding margin. Use the effective rate calculator to find your true rate, then benchmark it against the market.
Who enforces the surcharging rules?
Trading Standards in England, Scotland and Wales, and the Department for the Economy in Northern Ireland. A consumer can also recover an unlawful surcharge directly from the trader as a civil debt.
Paying too much to take cards? Get it repriced
If you sell to consumers you cannot surcharge, but you can lower your rate. Send your monthly volume, average ticket and trade, and our account team benchmarks your effective rate against the acquirer panel for your band, with no upfront fees.
Open quote form →Founder & Managing Director, Muswell Rose, MerchantHQ
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind MerchantHQ. His career runs through insurance, mortgages, commercial finance and fintech lending, including payments and merchant services. He writes the MerchantHQ library.
Last reviewed: 16 July 2026