Visa was thrown into chaos Friday evening when its payment system crashed across Europe, causing thousands of people to have their cards declined at supermarkets, major retailers and on public transport.

The card payments network, which can process up to 65,000 payments a second, said "service disruption" in Europe had stopped transactions from being processed.

In a statement early Saturday morning the company said its payment system was now operating at "full capacity" following a hardware failure.

A statement on the Visa Europe website, said: "Visa Europe's payment system is now operating at full capacity, and Visa account holders can now use Visa for any of their purchases and at ATMs, as they normally would."

The issue was not associated with any unauthorised access or cyber attack, the statement added.

The issue had caused chaos for millions just as half term came to an end, with drivers comparing the Severn Crossing heading into Wales as "hell on earth" as people struggled to pay the toll during Friday night rush hour. Over £1 in every £3 spent in the UK is on a Visa card.

Supermarket chains including Waitrose, Sainsbury's and Morrison's were unable to process payments this evening, forcing customers to leave trolleys full of their weekly shopping at the till.