Card surcharging in the UK: B2B vs B2C

Adding a card surcharge to a consumer transaction has been illegal in the UK since 13 January 2018. B2B surcharges remain legal but must be disclosed before payment. The dividing line is whether your customer is a "consumer" (acting outside trade, business, craft or profession) or a business buying for trade purposes.

The rule, in one paragraph

The Consumer Rights (Payment Surcharges) Regulations 2012, as amended by the Payment Services Regulations 2017, ban any card surcharge on a B2C transaction in the UK from 13 January 2018. B2B surcharges are unaffected and remain legal subject to disclosure and contract. Trading Standards enforce; consumers can also recover unlawful surcharges as a civil debt.

Decision tree

  1. Is your customer paying as a consumer (personal use) or as a business (trade use)?
    • Consumer → B2C → no surcharge allowed.
    • Business → B2B → surcharge allowed if disclosed.
  2. If "business", what entity?
    • Ltd company → B2B.
    • LLP / partnership → B2B.
    • Sole trader buying for business → B2B.
    • Sole trader buying for personal use → B2C.
  3. If "B2B", have you disclosed the surcharge?
    • In your terms of supply, on the invoice, and on the payment page → compliant.
    • Verbal only on the day → not robust.
    • Not at all → unenforceable; the customer can withhold and you cannot pursue.

What "consumer" means under the Regulations

A consumer under the Regulations is "an individual acting for purposes that are wholly or mainly outside that individual's trade, business, craft or profession". A sole trader is sometimes a consumer and sometimes a business depending on the purpose of the transaction. A Ltd company is never a consumer.

Practical UK test: ask whether the customer is paying from a business bank account, paying with a commercial card, claiming the VAT, or expensing it. If yes to any, the transaction is B2B and surchargeable.

How to implement legally (B2B)

  1. State the surcharge in your standard terms of business: "A 2% surcharge applies on all card payments." Pick a percentage that reflects your actual MSC plus a margin if you wish.
  2. Add a line to the bottom of every invoice: "If paying by card, a 2% surcharge applies. Bank transfer = no surcharge."
  3. Show the surcharge separately on the invoice or payment page; do not bake it into the headline price.
  4. Keep the surcharge proportionate. A 5%+ surcharge on a B2B transaction is legal but will trigger negotiation friction.

Common pitfalls

  • Surcharging consumers because "they always paid it before". Pre-2018 contracts do not grandfather; the ban applies to every transaction from 13 January 2018 onwards.
  • Surcharging AMEX consumer cards specifically. The 2018 amendment closed this. AMEX consumer cards are subject to the ban.
  • Surcharging digital wallets like Apple Pay or Google Pay. If the underlying card is a consumer card, the ban applies.
  • "Cash discount" framing. Discounting for cash is legal. Adding a surcharge for cards and calling it a discount is not, the test is the headline price the customer sees.
  • Selective B2B surcharging. If you surcharge B2B, do it consistently across customers; ad-hoc surcharging breaks contractual fairness and undermines enforceability.

If your card costs are too high, the right answer is rates not surcharges

If the trigger for considering a surcharge is your card-acceptance cost, the cleaner fix is reviewing your acquirer pricing. Modern UK acquirers offer 1.5%-1.75% on no-contract terms (SumUp Solo at 1.69%, Tide Card Reader at 1.5%). For higher-volume merchants, interchange-plus pricing is the lever. See our switch guides.

Authoritative source

Frequently asked questions

Can I add a card surcharge to a consumer transaction in the UK?

No. Card surcharges to consumers have been banned since 13 January 2018 under the Consumer Rights (Payment Surcharges) Regulations 2012, as amended by the Payment Services Regulations 2017. This applies to all consumer cards (debit, credit, charge) and to most digital wallets backed by them.

Can I add a card surcharge to a B2B transaction?

Yes. The ban only covers business-to-consumer payments. B2B surcharging is legal in the UK, provided you disclose the charge clearly before payment.

What if my customer is a sole trader or a micro-business, is that B2B or B2C?

It depends on whether the contract is for the customer's personal use or for their trade. The Regulations turn on whether the customer is a "consumer" (acting outside trade, business, craft 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?

How much can I surcharge on a B2B transaction?

There is no specific cap on B2B surcharges. The original Regulations' "no more than cost to the trader" cap applied to B2C; the 2018 amendment took that further by banning B2C surcharges entirely. B2B is unrestricted in amount but must be disclosed and contractually agreed.

Do I need to put it in my terms of business?

Yes. Best practice is to state the surcharge in your terms of supply, on the invoice, and on the payment page. Verbal agreement on the day is not robust if a dispute escalates.

What about American Express on B2C?

AMEX consumer cards fall under the same B2C ban. The 2018 amendment closed the AMEX loophole that existed in the original 2012 Regulations. AMEX commercial cards on a B2B transaction are surchargeable.

Are there any B2C exceptions?

Limited. The B2C ban does not apply to commercial cards (e.g. corporate AMEX, business debit) used by a business. It also does not apply to surcharges on non-card payment methods (e.g. surcharging cheques). The cap on non-card B2C surcharges is still "no more than cost to the trader".

Who enforces the rules?

Trading Standards (local authority) for breaches in England, Scotland and Wales. The Department for the Economy in Northern Ireland. Consumers can also recover an unlawful surcharge directly from the trader as a civil debt.

OM

Oliver Mackman

Director, AcceptCard

Oliver leads AcceptCard's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 7 May 2026