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Customers are paying hundreds of pounds as retailers are illegally charging for card payments, a BBC investigation has found. Credit and debit card surcharges were banned in January 2018, but retailers, letting agents and even a university have been found breaking the rules.

The legislation means customers cannot be charged more for paying by card. Matt Dickinson, from the Federation of Small Businesses, said for many it could simply be an “honest mistake”.

In some cases, the surcharge may be as little as 50p but when companies charge a percentage for using a card machine, the price can soar.

The University of Hull was found to be offering a 2% discount for students choosing to pay their fees by means other than a credit card, which Sylvia Rook from the Chartered Trading Standards Institute said was “no different” to a card surcharge.

This meant students who paid this year’s annual tuition fees using credit or debit cards were charged over £170 more than everyone else.

The university said it was a “genuine mistake” and it had already refunded affected students.

In Birmingham a car dealer insisted on a 3% card surcharge that, in a transaction discussed with an Inside Out reporter posing as a customer planning to buy a car for £4,795, meant an extra cost of £143.85. The car was not purchased.

During secret filming, the second hand trader at Rose Motors said the charge was due to “the machine we use”.

Ms Rook said anyone who had incurred a card surcharge was entitled to return to the retailer and get their money back. When asked for a response, the company’s director said it did not know the rules had changed and would stop adding the surcharge.