North-east travel agency Dawson & Sanderson has reportedly become the first in the country to abolish credit card fees.
The miniple, which has 21 branches, has scrapped its 2.25% credit card fee, labelling the surcharge “unethical”.
The change means customers spending £2000 on a holiday would save £45, local newssite Chroniclelive.co.uk reported.
It follows the agreement for an EU-wide cap on the charges paid by a business when customer uses card to buy something.
Chris Harrison, managing director of Dawson & Sanderson, told the newspaper: “It was a concern that we were penalising customers who chose to pay by credit card. This is the ethical thing to do and it’s right that we take the lead on this.
“We are a family-owned, independent travel agency and it’s important that businesses such as ourselves are innovating within the industry.”
He added: “A lot of customers prefer to use credit cards because they may be collecting reward points or find it more convenient to spread payments for larger purchases.
“Why should we be penalising our customers if they want to make that choice?"