The decision will take effect from 1 September 2017 and means the council will now absorb the fees levied by credit card companies rather than pass them on to the customer.
Until now, the council has recovered the cost – less than 1% - from customers who choose to use credit cards for transactions. But that is now being stopped, even though the authority will lose a small amount of income.
Cllr Mandy Chilcott, Deputy Leader of the Council, said: “The Government has announced that charging credit card fees will not be permitted from 13 January next year. We feel this is a sound decision and so we are ceasing our charges well in advance.
“Debit cards do not attract a charge. The fee we have charged for the use of credit cards simply recovers the fee which the council has to pay to the bank for receiving these sort of transactions.
“We hope that, in some small way, this will help our customers, particularly those who are on low or fixed incomes.”