Charges for making purchases with a credit or debit card have been banned.

It is now against the law for retailers to charge additional fees when someone uses a particular credit or debit card, or other payment systems like PayPal, to make a purchase.

So-called ‘surcharging’ has become commonplace, particularly online, with many retailers hitting people with surprise charges just before they are about to make a purchase.

It is estimated that surcharging cost Brits £166m in 2015.

Economic Secretary to the Treasury, John Glen said: "It’s completely unfair for someone to be hit by a hidden fee just before they are about to make a purchase, so by scrapping these rip-off charges we are helping to give power back to the consumer.

"As we build a fairer society, this added transparency ensures buyers can make informed choices about how they spend their hard-earned money."

The new rules came into place from Saturday will be in place across the whole EU. 

It will be enforced by Trading Standards who will have the power to take civil enforcement action against traders who breach the regulations.

It will also entitle customers to receive a refund of any unlawful surcharge they have paid and enable them, if necessary, to take legal action.

It comes as the Govenment also roles out changes to the way banks can pass on customer information. 

Called 'open banking', the idea is people can have their banks share the data around spending habits and payments to bring more competition and innovation to the sector.