My gripe for the day - credit card surcharges - Page 2 - General Holiday Enquiries, Hints and Tips, Holiday Forums

My gripe for the day - credit card surcharges

Sanji

2006-03-01 17:30:00

Regarding paying on credit card and being protected for goods purchased over £100
Since 1993, all tour operators offering package holidays have been subject to the " package travel regulations".
Some of the components being
To provide financial protection for prepayments and require Tour Operators to provide what is promised, with a guaranteed refund if the operator goes bust, and getting you home if this happens when you are on holiday.
Anyone buying a package holiday in the UK (and I think the EU) is financially protected by the law so all this rubbish about paying on credit card for protection is exactly that, rubbish !!! when dealing with Tour Operators and Travel Agents who are part of ABTA and FTO ( The Federation of Tour Operators)
When something goes wrong, you sue the TO, not the agent who is a sub-contractor of the TO.

Each year the Tour Operators pay a small percentage of their annual turnover into a "pot" that is held for the sole purpose of bailing the consumer out if any tour operator goes under.
ABTA - The Association of British Travel Agents represents both travel agents and Tour Operators .and if you choose to book a holiday where the TO or agent is not a member of ABTA, well that's your problem if they go bust.

Regarding having a months free debt, that is also not true, if the transaction is processed at a particular time of the month, and can be as little as 2 weeks to pay the amount off in full before incurring interest charges, and some credit card suppliers charge you an annual fee for having the card in the first place, also the TO`s insist on having my money 8 weeks before the date of my holiday, making interest in their bank account and making none in mine.

Whilst the final price might be displayed before the commitment is made, I think most peoples gripe is that the price advertised is not the price charged at the end of the booking process"¦ that is deception, misrepresentation and unfair trading.
A stupid way to look at this would be...If I buy a coat, I don`t have to pay extra for the buttons or pockets in it, they are expected to be part of the package of a coat that serves the purpose which it was purchased for, package holidays are just that, everything included that you basically need to get you from A to B and should not be "extras".

Besos xxx
Sanji

Kazee

2006-03-01 17:44:33

Mark
I do feel for you, lesson learnt next time have all the deposit money from the other 6 people going with you. :wink:

On a serious note will the others pay for your forfeit, it is only fair don't you think :?:

It is frustrating though when you think of the amount due to be paid at a later date.
Keep smiling though

kind regards
kazee :ghug

Jay Trip

2006-03-01 20:20:36

post subject

Not all travel agents charge for credit cards.Holiday city and Kwik travel dont charge for certain holidays.If I am booking with a company that charges I pay with my debit card.

craigb

2006-03-01 22:49:33

Blackcat...yes you get the points! Get free holiday essentials with them before I go from Boots!!! :lol:

Diamond Olly

2006-03-02 08:13:36

Its not ABTA that protects the holidaymaker - its ATOL. Many agents these days are not part of ABTA who protect the agency's money. All agents pay a bond for financial protection. ABTA seems to be losing its effectiveness as many companies such as Travel Counsellors, Travel Trust Association and Global Travel Group are not part of ABTA but still ensure that clients' money is protected if the agency goes out of business. What protects you from the tour operator going out of business is ATOL which is overseen by the Civil Aviation Authority.

Sanji

2006-03-02 10:45:54

What protects you from the tour operator going out of business is ATOL which is overseen by the Civil Aviation Authority.

Yes, I stand corrected on that, :oops:

but does not ABTA also protect its members?....and the ones who are not part of ABTA ( the independant tour operators) the Federation of Tour Operators protect them.?
I think it also depends on whether the Tour Operator is offering a flight or not, as in who holds/pays the bond.
It`s all too complicated for me, :oops:

I`m not a travel agent and the point I was really trying to make was, that you don`t have to pay by credit card to have protection......so I make sure the company I book with has either ABTA, AITO, ATOL or FTO affiliation.
This may explain better than me :oops:

http://www.fto.co.uk/operators-factfile/legal-requirements/

besos xxx
Sanji

2006-03-02 10:51:03

TOs who only sell their own holiday packages and no other - eg direct sales outfits are not eligible for membership of ABTA and thus will only be part of the ATOL scheme but this generally, as many members of this forum hvae found offers very limited protection. Yes, it covers you for financial recompense if the TO goes bust and will get you home etc if this happens whilst you are away but it's pretty toothless with regards to complaints about standards and levels of service. This is where using a credit card comes into it's own. The credit card companies are equally liable with the TO if the goods or service paid for turns out to be not fit for purpose or to fall short of the promises made at time of purchase. In my experience the crdeit card companies are more likely to promptly reimburse you and tackle the supplier/retailer to ensure that they are not out of pocket.

As for Sanji's coat analogy I think that I'd really like it if clothes retailers gave me the option of paying for a more tailor made product. I'd no longer have to shorten sleeves and hems for myself, could get them to change the buttons for something nicer etc :-)

SM

Diamond Olly

2006-03-02 11:09:52

Yes ABTA does protect its members. The point I was trying to make is that you don't have to use an ABTA protected travel agent in order to be protected. Other agency consortia protect the money of their members' clients by protected client accounts. ATOL protects the package element side and will only come into force if you book a package - doesn't apply if you DIY. Here you will have to rely on any protection that your credit card offers if something goes wrong.

You're right Sanji - always book with a company that is protected (preferably by ATOL). You spend a lot of money on holidays - don't waste it!!

Sanji

2006-03-02 12:06:26

As for Sanji's coat analogy I think that I'd really like it if clothes retailers gave me the option of paying for a more tailor made product. I'd no longer have to shorten sleeves and hems for myself, could get them to change the buttons for something nicer etc

Then you wouldn`t go to the market to buy the coat in the first place, and if you did then you would still expect it to have sleeves and buttons on it , thus making it a complete (package) coat.
A coat should have all the components that you require to be able to wear it, and should not be charged as extras...just like a package holiday.
If over the coat price you then decide to change it, then that it your choice...but some people are quite happy going to the market for a bog standard coat and object at being made to pay for buttons on it. :lol:

Besos xxx
Sanji

gopher

2006-03-02 16:55:57

Hi mark.

Why don't you consider doing what i do.
Join an affiliation and place a banner upon your site to the holiday company you wish to book with.
Then simply book through your link to the site and pay by your card.
In a short time you will receive an affiliation referal bonus into your account.

Most affilates earn around 3% commission so your £10000 would have got you £300 back.
Just thought you maybe interested in that option.

Cheers Ken.

fwh

2006-03-02 17:03:25

You pays your money and takes your choice by which means that you do it. If you are happy to walk down the road with a wad of notes then fine. If you use a debit or credit card it is your choice.

Whichever means you decide on then the agent or TO will be charged by the bank. Banks do not take your money for free. They also in the case of cash have to reconcile and pay in. All this takes time and costs money.

There are advantages and disadvantages whichever you choose.

Pay by CC at IKEA and they charge you.

The fact you go to M&S to buy a coat and it does not say they have, does not mean they have not. It is built into the price.

In recent years the surcharge has become the norm. Are the margins that low?

The way that transfers, inflight meals and fuel have become add ons is I think of far more concern.

It is possible ( I have done so ) to negotiate as far as the CC surcharges. I have had them waived or reduced. I have never been able to negotiate a discount for paying in cash.

With all due respect, our modern economy, where people live on credit, has only helped to extend the practice of the CC surcharges.

As far as the high street shops and supermarkets are concerned I have no doubt that if they could get away with doing so they would. They are in business for (Dirty Word) PROFIT

When I used to do my budgets, amongst all the figures that were taken into account was bank charges.

I cannot see the travel industry changing the practice. It is established. People may not agree with it but until they all stop paying with that bit of plastic it will continue.

If we all switch to paying in fivers then I have no doubt some other means will be devised to make up the shortfall.

There is a limit to the amount you may pay in cash for any one transaction at a time. In the case of buying a car then they are only allowed to accept £9,000 in cash. Rules on money laundering dictate that. I would assume that a similar rule applies with travel agents/TOs

fwh

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