Tynwald is expected to ban surcharges on credit and debit cards next week.

If it agrees, the island will follow the UK’s lead on the matter.

With effect from January 13 in the UK (and the rest of the European Economic Area) it will be unlawful for traders to apply surcharges for consumer payments by card.

This means that it will be unlawful for businesses to, for example, add an additional percentage charge when customers pay for goods or services with a credit card.

Office of Fair Trading chairman Martyn Perkins MHK said: ’Whilst the UK regulations are not directly applicable to the island, they will indirectly impact on local businesses trading into the UK or EEA and on local consumers buying goods online.

’This would leave a very confusing situation and risks our consumers being placed at a disadvantage compared to their UK counterparts.

’The OFT has decided to make an Order under section 62A of the Consumer Protection Act 1991, applying the UK regulations to the island with the necessary modifications.’

The practical effect of the order will ban card surcharges in the Isle of Man at the same time as the UK.

The rules do not require a trader to accept any particular payment method, but whatever payment methods the trader accepts the price must be the same.

Mr Perkins added: ’A key role of the OFT is to protect consumers and it is important to close the loophole which would disadvantage local consumers. The Order requires approval by Tynwald and I am intending to take it to the December sitting.’