Paying for a holiday by Debit Card, I'm confused

poppie123 · 10 September 2008 at 7:28PM

Hi everyone,

I am ashamed to say that i only found out just under 2 weeks ago that if you pay for a holiday or flight by debit card then you are not covered if they go bust.

What if the company are ATOL or ABTA bonded would you get your money back then?? i'm so confused by it all.

I am going to WDW next August and for the first time ever i will be doing it DIY.
I have already paid the depoist of my holiday (£150) by debit card. I have booked through Disney UK, park tickets, accommodation and dining plan.
Now i know the likelyhood of WDW going bust is very remote but now i can't help but worry. If i used someone elses credit card ( i haven't got one, don't think they are a good idea)and paid off the balance when it is due would i be covered then? even though i have paid the deposit by debit card.

What about flights? i am looking to go with either BA, Virgin, American Airlines or maybe even Delta. Should i definately book that by Credit Card?

Hope you can help, maybe put my mind at rest

Thanks

Engadine · 10 September 2008 at 7:56PM

If you are booking flights on their own directly with the airline then definitely book using a credit card. Booking just a flight directly with an airline is not covered by an ATOL licence. If you book your flights with a travel agent then check they have an ATOL.

If your debit card is a Visa debit card then you will have protection if the company you book with goes under. You could pay the balance of your holiday with a credit card and you would be covered if anything should happen.

There was a case fairly recently where a woman paid just her deposit by credit card and the balance in cash. The company went under but as she had paid part of the holiday by credit card she was able to claim the full cost of her holiday.

The likely hood of anything happening to Disney is very remote so I am sure your money and holiday will be safe.

Diamond_Olly · 10 September 2008 at 8:15PM

If you are booking your accommodation and flights separately, then it won't be covered under ATOL as it is not a package. For a package to be covered, it has to be booked either through a travel agent who can cover the majority of holidays booked or direct and entirely with the operator. ABTA covers the agent and/or the travel firm. ATOL covers the package - so if you're stranded if the airline goes bust, they will bring you home.

Hope this clarifies.

poppie123 · 10 September 2008 at 8:33PM

Does that mean that my package (accommodation + park tickets) that i booked through Disney UK will not be covered as i think they are only ABTA bonded not ATOL as well, at least i don't think they are ATOL bonded. I thought i would be ok if i paid the balance via credit card.

Sorry i am even more confused now.

Engadine · 10 September 2008 at 8:45PM

What you have booked isn't classed as a package there are no flights included so not covered by an ATOL.

Walt Disney Travel Company are ABTA members but as Diamond Olly says that covers the travel firm, an ATOL covers packages.

poppie123 · 10 September 2008 at 8:57PM

I think i understand now,
So if i am right my trip booked with Disney would be ok if anything went wrong because they belong to ABTA and ABTA would then reimburse me so to speak if they went bust. Is that correct.??

For my flight i would have no protection whatsoever if i booked direct with the airline.

Engadine · 10 September 2008 at 9:10PM

If you book flight only directly with an airline then you don't have protection under an ATOL. If you book with the airline using a credit card then you have protection from the credit card company.

There is information on the ABTA website regarding protection of travel arrangements

http://www.abta.com/consumer-services/protecting_your_travel_arrangements

vikingaero · 10 September 2008 at 9:42PM

If you have a Visa debit card you should technically be covered as Visa made all issuing banks give the same protection to customers as if they had used a Visa Credit Card.

annie_s_6 · 12 September 2008 at 6:14PM

Hi i booked a flight last night with freedom flights (who are ATOL protected) with my visa debit card. I went to the bank today to see if i could stop the payment but they said the transaction had already been done, i asked could i claim it back with it being a visa debit and was told no i cant!! and to get in touch with ATOL is this right? i cant seem to get a straight answer!! thanks

annie_s_6 · 12 September 2008 at 6:15PM

i should have added that Freedom Flights are part of XL airways group

Nicky321 · 12 September 2008 at 6:25PM

annie_s wrote: »

Hi i booked a flight last night with freedom flights (who are ATOL protected) with my visa debit card. I went to the bank today to see if i could stop the payment but they said the transaction had already been done, i asked could i claim it back with it being a visa debit and was told no i cant!! and to get in touch with ATOL is this right? i cant seem to get a straight answer!! thanks

I would contact ATOL, there is a claimform for flights booked with XL through freedom flights...
This may be of help http://www.caa.co.uk/docs/1804/Freedom_Flights_Claim_Form.pdf

Paying for a holiday by Debit Card, I'm confused

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