Small businesses will no longer be able to charge customers for using credit and debit cards due to the revised Payment Services Directive (PSD2).
FSB National Chairman Mike Cherry said: “The proportion of small firms reporting a rise in operating costs is now at a five-year high. Removing their freedom to share the burden of card payment fees will give them yet another outgoing to worry about.”
As a result of the new rules, HMRC has announced that it will stop accepting payments by personal credit card. “It’s hypocritical of HMRC to stop accepting personal credit card payments, as they consider them too expensive to process, while small firms are expected to absorb those same costs,” added Mr Cherry.