Affordable Car Hire is to scrap all credit card surcharges from January.

The move follows government plans announced July to ban all surcharging – the process of charging consumers a fee for paying with a card, including credit and debit cards – from January 13, 2018.

The ban will apply to consumers paying with Visa, Mastercard, PayPal and American Express.

Affordable Car Hire chief executive Angela Day welcomed the plans to scrap surcharges.

She said its response to remove its 2% fee was in line with being able to offer affordable products with the best service to its trade partners.

Day said: “We have only ever charged and passed on the going rate; it has never been profitable to Affordable Car Hire. I think it is a very positive move for consumers not to be charged a credit card fee.”