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Just Eat criticised over service charge

From BBC - January 9, 2018

Takeaway food app Just Eat is being criticised after introducing a 50p service charge on all its orders.

Previously it levied a 50p surcharge on debit and credit card payments.

But from Saturday 13 January, all card surcharges will be banned when a new European directive comes into force.

Critics say the move by Just Eat flies in the face of the new legislation, which was designed to save consumers up to 473m a year in card charges.

"It's wrong for companies to rebrand credit card fees as service charges," said Hannah Maundrell, the editor in chief of Money.co.uk.

"The law was changed to stop businesses from profiting from unnecessary credit and debit card fees. So this makes a mockery of the law which is trying to protect us from getting ripped off."

In a statement, Just Eat said it had already been considering altering the way it charges its customers.

However, it admitted that "the change to legislation did play a part in prompting the review".

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