The adding of inflated surcharges for payment by credit card, which costs companies 0.6%, is to be banned from January.

The ban will affect airlines such as Flybe, which charges 3% with a minimum charge of £5, Ryanair, FlightCentre and Thomson Airways which charge 2% and British Airways which charges 1%. Insurer Swinton Insurance charges 2.5% as do North District Council, with other councils such as Wealdon, East Herts, Lichfield and Tameside all charging 2%.

Budget hotel group Travelodge currently impose a £2 fee for payments by credit card or PayPal.