UK credit card charges have been reduced..by law.

Back to Forum

This topic contains 17 replies, has 11 voices, and was last updated by  AMcWhirter 18 Apr 2013
at 15:51
.

Viewing 15 posts - 1 through 15 (of 18 total)

  • Anonymous

    openfly
    Participant

    As of midnight last night the UK government ruled that rip-off debit and credit card charges had to now reflect the actual charge by the card companies.

    Needless to say BA are still charging £4.50 per person per booking….on a £39 fare from LGW. EasyJest and O’Leary are still charging their exorbitant credit card fees. Look as though its two fingers to the new UK government rule!

    At least on bookings ex-Europe there is no charge.


    LuganoPirate
    Participant

    I also read that they are still allowed to charge and “Admin” fee. Is that what is now being charged and if so expect that to rise to compensate.


    HarryMonk
    Participant

    LP

    I believe they are still allowed to charge an “admin fee” but my understanding was that “admin fees” and similar fees had to be included in the headline price


    MarcusUK
    Participant

    Presumably, if the Airlines continue to state a specific charge for using a card, then thay a now in breach of the law?

    Have not checked KLM AF yet, my usual bookings, but be interesting to see…?

    How about BA and other Non low cost Airlines for flights Ex UK on UK side of the websites?


    JohnHarper
    Participant

    For the sake of comparison, on the deal my company has with a card service provider the fee on a payment of £39 would be 78p. BA must have a really poor deal if they are charging £4.50 on that transaction.

    Maybe they are just intending to flout the rule as I suspect they have more financial muscle with the banks than we do!


    ImissConcorde
    Participant

    openfly – B.A. makes no charge for the use of debit cards. The £4.50 credit card charge per transaction is a bargain when compared to EI/FR’s €6/£6 per flight!

    Edited to say £4.50 is per ticket not per transaction.


    NTarrant
    Participant

    Charges for credit card use are very irritating and this was once stamped out back in the late 70’s early 80’s. The cost to a company depends on the card merchant they use and the industry.

    In John Harpers example that is 2%, the same 2% you would pay a travel agent for using a credit card. If you were purchasing tickets for £300.00 per person then the cost would be £6.00 per person, so BA charging £4.50 is a bargain. Doesn’t make it right though.


    HarryMonk
    Participant

    From what I read the new rules state that the fees levied for credit card payment must reflect the actual costs incurred. It did not say whether that is the cost per individual transaction or the costs across the entire company’s credit card transactions. If it is the later then maybe that is why the £4.50 BA fee which in percentage terms for a short haul economy fares is very high while it would be significantly less in percentage terms for a long haul first fare


    MarcusUK
    Participant

    Making a dummy booking on the KLM UK site yesterday, charges were still being made for credit card use of £4.50.
    Is This now Not illeagal?

    Perhaps bt should investigate various Uk Sites Of various Airlines, and those charging to give their Reasons for ignoring the New Rules?
    Cityjet do not charge from LCY, though run code share flights for KLM to Amsterdam. Book this on the KLM UK site or AF UK site and they still charge!

    I also found, Ex Amsterdam flights booked via KLM on the NL site, charge €10 Per passenger booking as well as credit card charges!

    You can avoid this by using the AF UK site, that allows to book from and World city, including Amsterdam, and avoid these booking charges!


    TominScotland
    Participant

    Just made a Ryanair booking – credit card fee of just 40p on a £19.99 fare………… Something has clearly changed for the (very) good!


    ImissConcorde
    Participant

    But the Aer Lingus “admin fee” has gone from €5/£5 to €7/£7!!!


    TominScotland
    Participant

    Yes, ImissConcorde, I noticed that too as the return I booked (DUB-GLA) is with Aer Lingus.


    DerekVH
    Participant

    I booked a BA flight to BOS on the 15th and was charged a £4.50 credit card surcharge so no change at BA.


    TimFitzgeraldTC
    Participant

    It isn’t illegal to charge credit card fees. They can be charged to cover the costs of taking a credit card – so if a merchant charges a 1.5% credit card fee this is fine if that is the cost to the merchant. What isn’t fine is what the likes of Ryanair where charging a £6 flat fee regardless of value. In the case of BA I guess they will argus that on average this is less than the cost of processing a credit card payment as there average ticket value is much higher than Ryanair and is not profit making unlike Ryanair.

    I’m not saying it is right and and maybe the Airlines that charge £4.50 wil have to change – and possibly be more expensive in future to cover these costs? In the case of Boston though above I guess the £4.50 was less than 1.5% or 2% of the value of the ticket.

Viewing 15 posts - 1 through 15 (of 18 total)
You must be logged in to reply to this topic.
Be up-to-date
Magazine Subscription

To see our latest subscription offers for Business Traveller editions worldwide, click on the Subscribe & Save link below

Polls