The practical starting point
For most UK retail payments, a business must not add a fee based on the consumer’s choice of payment method. The government guidance covers card payments and certain other payment services; it applies across face-to-face, online and telephone sales.
Do not rely on a simple ‘business card means surcharge allowed’ rule. The instrument, payer, payee and location of payment providers can all matter.
When a charge may still be restricted
For other retail payments and many business payments made with commercial instruments, any permitted surcharge generally must not exceed the direct cost borne for using that payment method. That is a cost-based limit, not permission to add an arbitrary percentage.
Safer pricing design
- Set one clear price that already reflects ordinary payment acceptance costs.
- Do not rename a payment surcharge as an administration or handling fee if it is triggered by the payment method.
- Make any genuinely separate delivery or service charge clear before the customer commits.
- Get advice on unusual commercial-card, international or platform payment flows before implementing a fee.
Cash discounts still need care
A genuine, clearly presented discount can be different from a payment surcharge, but relabelling the same higher card price does not necessarily change its substance. Review the complete presentation and obtain legal advice where the distinction matters.
This is general information
This guide is not legal advice. Payment-surcharge rules and their application can be fact-specific. Use the current government guidance and take professional advice before changing checkout or pricing terms.
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About this guide
Published by Card Payment Connect, an independent card-payment consultancy for UK businesses. Reviewed by Matthew McCarthy, who has worked in UK merchant services for over a decade. Last reviewed 11 September 2026.