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Hidden card charges to be banned

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Hidden card charges to be banned

Hidden card charges for travel tickets to be banned
Quote
Airline, ferry and rail passengers typically have to click through four to six pages of an online booking before the charge is added to the price.

I recently was pricing up the various costs of travelling to La Roche by Ferry, Eurotunnel and air.
By the time the 'extra's were added to the air prices they were nowhere near the headline price, in some cases around double.
Quote
It also wants the law changed to abolish altogether charges for using debit cards.

That cost, surely, would just be added to the cost of the service?

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VileReynard
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Re: Hidden card charges to be banned

You could pay with a cheque.  Grin Grin Grin

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Re: Hidden card charges to be banned

I've still got a cheque book from quite a few years ago - never been used. Will I get anything on ebay?
Just seen this thread Where Will OFT's Debit Card Warning Leave Plusnet?.

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Re: Hidden card charges to be banned

Quote from: Mav
That cost, surely, would just be added to the cost of the service?

I think what the OFT wants is for the cost to be shown as part of the price and not something that gets added on at the very end of a transaction.
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Re: Hidden card charges to be banned

I doubt if the price would be listed upfront as, for argument's sake:
Quote
Flight £28
CC charge £8

It'll probably just read:
Quote
Flight £36

or, more likely;
Quote
Flight £40
Angry

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Re: Hidden card charges to be banned

Yes Mav i think you are right.  The OFT simply want the charge to be included upfront and no indication given of the separate amount.  It will be no different to buying from say Amazon where no separate figure is shown.
nadger
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Re: Hidden card charges to be banned

@Mav - La Roche?
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Re: Hidden card charges to be banned

Historically the law was that the price displayed in consumer transactions was the price to be charged.  Businesses complained that if payment was by credit card, then they would lose out, because the credit card company made a charge.  The law was changed to allow a different price to be charged for credit cards as long as it was made clear that this was the case, for example "credit cards will be charged 2% extra"
Over time (and especially in the travel industry (Ryanair being the worst)) this has spread to mean any plastic, but the original purpose was to recompense businesses for the extra costs they incurred on credit cards (i.e. the fee they paid to the card supplier)
This is a typical case of giving business an inch ...
In my opinion pricing legislation should be really easy - there is one price displayed, and that is what you pay, but that's too simplistic apparently, so under pressure from business, successive governments have brought in complex regulations, which most businesses then circumvent
Oh well.  Let's see what they do this time (one in, one out)
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Re: Hidden card charges to be banned

Quote from: nadger
@Mav - La Roche?

Sorry, had a problem with keyboard and forgot to edit it pnce sorted - should have been LaRochelle.
We have friends who live there and have invited us over. I'd prefer to drive but that is looking pretty expensive Sad

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nadger
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Re: Hidden card charges to be banned

The bridge from La Rochelle to Il de Re is the most expensive I've ever driven across.
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Re: Hidden card charges to be banned

With the travel trade they have used the CC charge to make extra profit which does not reflect the cost of providing the service.  We used to pay our card provider 1.65% of the transaction if a CC was used (Amex around 4%). Multi-nationals have possibly got this down around 1.5%.  So on a transaction of £100 the charge would be £1.65 and not the £8 some airlines are charging.
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Re: Hidden card charges to be banned

All the budget airlines will do is just double the price of checking in luggage instead, so it's not like the consumer will be better off.
Cheques will be even more redundant in two days time, the banks are stopping the cheque guarantee scheme on the 30th.
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Re: Hidden card charges to be banned

Quote from: artmo
Multi-nationals have possibly got this down around 1.5%. 

Trailfinders (Travel Agent) still don't pass on CC charges, you pay the price they quote, they do all the work.
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Re: Hidden card charges to be banned

If people refused to fly via Ryanair, while they continue those ridiculous charges, you might just find a certain arrogant Irish businessman eating humble pie. As it is most people continue to let him take the pith.
Now Zen, but a +Net residue.
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Re: Hidden card charges to be banned

Quote from: journeys
[Trailfinders (Travel Agent) still don't pass on CC charges, you pay the price they quote, they do all the work.

I booked a flight with US Airways last week and there was no CC charge.