"Rip off" card fees will be banned from next year as the Government has announced that paying by card will be free for consumers from next year.

All consumer-facing credit and debit fees, which can be as high as 20 per cent, will be outlawed from next year under an EU rule change.

For decades surcharges have been used by shops, restaurants and travel firms to make extra profit at the direct expense of customers choosing to pay by card.

They are also used by councils, HMRC, and other government agencies including the DVLA to squeeze extra money out of consumers.

But from January 2018 organisations caught charging customers for card payments will be ordered by authorities repay the fees, with those who refuse facing fines worth thousands of pounds.