A looming ban on debit and credit card charges will cost the travel industry up to £150 million, according to consultancy firm RSM.
From 13 January next year, the second EU Payment Services Directive, known as PSD2, will ban surcharging for credit and debit card payments for most transactions, including for flight and holiday bookings instore and online.
More info here
Courtesy of Travelmole
I suppose they will get that lost revenue another way.
I'm sure they will but I've never understood why they didn't just regard it as a yet another business cost they have to cover and price up products and services accordingly. After all the days of rocking up at a travel agent etc with a wad of notes to pay for a holiday in cash are long gone. Unlike other 'extras' such as checked-in baggage it really isn't a choice for most consumers - it's not something that you could choose not to pay extra for, especially if booking on-line rather than over the counter.
Most other buisnesses seem to manage OK its a disgrace that they are allowed to do it if they are happy for you to use a card.I supose they will just add it to the price or start charging for anything else that they currently try to get you to think is free.
The Association of Independent Tour Operators says information given to the British public wrongly accuses travel companies of ripping off customers and of profiteering from the charges.
Read more here
Courtesy of Travelmole
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Edited by
Glynis HT Admin
2017-07-24 09:48:33
I can understand a travel business is upset at having to pay 2% commission to a credit card / bank company , on a £2000 price that is a £40 commission , so how does he feel a consumer feels at having to pay another £40 charge on top of their £2000 purchase ?
Most purchases we make as consumers at retail outlets include card charges , we don't get hit with an extra charge at the till in electrical retailers when buying a big TV , or at the supermarket after a weekly shop , and those type of businesses have to run on " paper thin " margins too .
I do agree that bank charges / card commissions should be driven down to help businesses and consumers , they are not having to make or produce a product or sell it , the charges are simple administrative levies so their costs are extremely low on the fees it receives , but they do market their cards with cash back offers or points to the consumer who in reality are actually paying for them in the first place by way of the commissions whether they are included or not in businesses selling prices !!!
Folk participating in the usual annual rush to book summer holidays need to remember what is going to happen on January 13th 2018. ALL card charges - including credit card charges - are to end. So if you aim to pay a 2000 pound holiday bill in January, it might be better to wait till after the 13th, especially if it is something already booked and with its price fixed. And don't forget - this change to the law applies to EVERYTHING. Even mundane things like your annual car road tax - use a credit card AFTER 13th January, avoid the 2.5% surcharge - and get the advantage of up to 51 days of free credit!!
The companies complaining are those who see an end to the "Nice Little Earner" I am sure however they will quickly find some other way to screw us.
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