Send tip

Category: Money

Rip-offs in Credit Card Charges

Written on September 30, 2010 by Japhet Writ

3 persons

When your credit card fee is more than what it was supposed to be in retail, think again. You might want to cut your card in half now.

Consumers might not know it, but airlines, holiday companies and cinemas are ripping-off their patrons by imposing a hefty mark-up on card processing fees. While banks typically charge a few pence to process a debit card sale, shoppers can be stung for £5 and often much more. , easyJet, Odeon, NCP, Premiere Inn, Eurostar and the Government’s are guilty in putting a “must-pay” processing fees. Which?, a consumer champion, has lifted the lid on the rip-off.

For instance, four return tickets with Ryanair on a debit card would be charged £5 each way per passenger. In card processing fees would charge them £40, when the actual bank fee is just 10 pence. Companies such as Ryanair points their fingers on the bank for expensive processing fees. However, Which? clears it out that businesses inflate the charges to fill their own coffers. But it’s not just the airlines that should be looked at. Irish Ferries and Brittany Ferries cash in £5 flat on credit card bookings. According to Which?, a £1.70 ticket bought from thetrainline.com costs an extra £3.50 by credit card — which is a 200% increase. Government agencies like DVLA charges £2.50 to those who buy a tax disc with a credit card.

Speaking for the banks, the UK Cards Association said that consumers were being forced to pay more than the true cost. Visa Europe claims that they oppose the practice, and Ryanair argues that people can avoid its charges if they pay through a Prepaid Mastercard. A thing that only few people own

Now that the lid is off, are you still going to use your card?

View Article Source »
Share

Related articles


Featured


View all