Shoppers could potentially benefit from lower prices due to new rules to stamp out the "often unfair" fees charged to businesses for processing card payments, the Government has said.

It has published its response to a consultation on rules to cap the fees charged by banks to their business customers for processing debit and credit card payments.

The new rules, which are part of regulations agreed by the EU earlier this year, introduce an EU-wide cap on the charges that a business has to pay when a customer makes a card payment.

From December 9, the fees banks can charge will be capped at 0.3% for credit card transactions and at an average of 0.2% for domestic debit card transactions.

Nearly 10.7 billion credit and debit transactions took place across Britain in 2013, and it has been estimated that the moves could save British retailers up to £700 million a year.

The Government said it expects businesses to pass the savings on to consumers in the form of lower prices.

The EU is also close to finalising a revision of the Payment Services Directive, to prevent businesses from making money from customers who choose to pay by card.

Economic Secretary to the Treasury Harriett Baldwin said: "We are determined to tackle the unfair fees that Britain's businesses are often charged when their customers pay by card - fees which are often passed on to consumers.

"And that's why I am delighted that we reached an agreement to reduce the fees that banks can charge businesses for processing card transactions. I expect businesses to pass on these savings to consumers in the form of lower prices."