Companies will still able to add a surcharge if you choose to pay by cash or cheque.
Companies will no longer be allowed to charge customers up to 20 per cent more for buying with plastic.
Surcharges have always been added to bills by businesses from airlines to takeaway apps to offset the processing fees charged by credit card companies.
But it comes amid concerns that the cost of goods and services may creep up, or additional fees added by retailers, to compensate for the changes.
Takeaway ordering service Just Eat has already announced it will remove its 50p charge for paying with card and instead replace it with a 50p service charge for all purchases, regardless of form of payment.
They also called on shoppers to report anyone flouting the rules.
The surcharges have been commonly added by businesses ranging from takeaway apps to global airlines on customers who pay by card or use other services such as PayPal. They usually say the fee is to cover the cost of processing a card payment.
Bloomberg via Getty Images Card charges will be banned from tomorrow
They are also levied by some councils and government agencies, such as the DVLA.
It is estimated that surcharging costs Britons £166million a year.
Gareth Shaw, from Which?
"Another important benefit is that it will prevent consumers being deterred from using their credit or debit card to make payments". However, people will be wary if it results in price increases, minimum spend limits or even cards being refused by retailers.
"The Government and regulator need to closely monitor the effectiveness of the ban - and the fees banks charge retailers for card payments - to ensure that it has the positive impact for consumers originally intended".
But Helen Saxon, from MoneySavingExpert.com, warned: "It may be that we see the amount that used to be charged in credit card fees popping".