The Consumer Protection (Payment Surcharges) Regulation 2012 mean that traders should not charge people more than it costs to process payments made with a credit or debit card.
Trading Standards officers from Wolverhampton are now working with businesses in the city to advise them of the regulations and the consequences of not complying.
Any companies that continue to apply these charges could face action under the Enterprise Act 2002 (Part 8 Domestic Infringements) Order 2013 through the Court or face fines of up to £5,000 per offence.
The new rules apply if you book flights, download software over the internet, join a gym, book concert tickets, book train tickets, or buy other goods and services.
Some types of contracts will be excluded such as paying for social housing, social health care, timeshares, food and drink deliveries or financial services such as banking, insurance and personal pensions.
New businesses and micro business, which have less than 10 staff, are exempt until June 2014.
Councillor John Reynolds, Wolverhampton City Council's Cabinet Member for City Services, said: "Consumers have long been ripped off for excessive payment surcharges and only finding out towards the end of the process that the final price is much higher.
"If anyone has any concerns or needs further advice about the new regulations, I would urge them to contact our Trading Standards team for more information."
People can contact Wolverhampton's Trading Standards team by calling 01902 551155.
- released: Tuesday 14 May, 2013