FURNITURE store Ikea is to start levying a 70p charge on customers who pay using credit cards.
Ikea, which has a store at Birstall, said the new levy would save the company £3.5m a year - money which could be used to cut prices for all customers.
The levy will be introduced on Wednesday, September 1.
Customers paying with cash or debit cards like Switch will not be affected.
At present, a third of Ikea customers pay with a credit card.
But credit card companies take 70p on average from Ikea for each credit card transaction.
The credit card industry has been criticised for the practice, but says the charges are needed to help meet the cost of administering the credit card system.
Laura Addison, manager at the Birstall store, said: "Ikea will now charge customers a 70p levy if they choose to use their credit cards.
"However, the decision to recoup the credit card industry's 70p charge from credit card users has to be seen in context.
"The 70p charge compares against the £110 average amount spent by an Ikea credit card shopper during a trip to one of our stores.
"Saving money that currently goes to credit card companies gives us a whole new revenue stream with which to reduce prices even more aggressively."
Ms Addison added: "We want to take this money from the credit card industry and put it into the pockets of all our customers.
"Some people may criticise the levy, but it is important to realise that you can avoid the charge if you pay with cash or a debit card.
"We are ending the cross subsidisation of credit card users by those who pay by other means.
"The result will be that all customers, including credit card customers, gain by way of lower prices. The only losers will be the credit card industry."
