Small and medium-sized enterprises (SMEs) are missing out on millions of pounds of Christmas purchases because they are not adapting to consumers’ needs, a report has revealed.

Payment provider Paymentsense, which published the research, said charging consumers for card purchases, or not offering card services at all, is pushing potential customers away from stores.

A survey of 1,000 customers revealed that 42 per cent still face card charges in day to day activities.

The problem is particularly prevalent among small businesses and independent shops and food outlets.

It further found that 37 per cent of shoppers had “walked away” from a purchase because they were made aware that the business charges for card payments, and 25 per cent would not return.

Just eight per cent of shoppers said they were still willing to use a store if they knew it charged a card surcharge.

The Government announced a ban on card surcharges this Summer, and is due to go into effect in 2018.

Guy Moreve, head of marketing at Paymentsense said: “We believe the upcoming change will help small businesses as well as consumers. Shoppers previously affected by a potential surcharge are likely to see a saving of between two and three percent per card transaction.

“Our study also highlighted that SMEs across the country have lost revenue and customers by maintaining card surcharges, after the ban was widely announced. However, after January 13, everybody will know where they stand, and the days of surcharge-related walkouts will be gone. This can only be a good thing for the UK’s small businesses.”