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MSE News: Ryanair slaps 2% credit card fee on flights
Former_MSE_Helen
Posts: 2,382 Forumite
"The budget airline revealed the new fee just weeks after announcing all customers must pay its £6 per leg booking charge..."
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Comments
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Spokesman said: "[...] and to comply with the OFT's recent ruling, we are introducing a 2% credit card handling fee from 30 November 2012."
I can't believe a spokesman would be able to read that out loud whilst maintaining a straight face.0 -
At the end of the day the market will decide.
When all of RA fees and charges are added up and if they are still the cheapest fare then people will book, if not they`ll book whoever is the cheapest.0 -
Wow, I thought the OFT were trying to stamp down on this sort of thing, instead Ryanair spit in their facepoppy100
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The OFT are perfectly happy with credit card charges of around 2%, because they reflect the actual cost to the retailer. Even the govt themselves charge extra for paying by CC, for instance for road tax.Wow, I thought the OFT were trying to stamp down on this sort of thing, instead Ryanair spit in their face0 -
I have a feeling of deja vu. Wasn't that what happened many years ago. If you paid by credit card you paid more than if you paid by debit card but if you used electron you didn't have to pay the extra fee. That was replaced by the pre-paid mastercard which in turn was replaced by the Ryanair Passport only then the fee to pay became an admin charge. Now they have decided to charge a credit card fee in addition to the admin charge.0
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Article 19 of Directive 2011/83/EU on Consumer Rights will prevent Ryanair from charging more than it costs them. I find it hard to believe that a company as large as Ryanair pays as much as 2% to process a credit card payment. Although this percentage might be common for small retailers, very large businesses negotiate much lower percentages with the card processing companies. I doubt we've seen the end of this story.0
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Why? It's pretty standard practice, loads of travel companies have a CC fee of about 2%
Yes, they're allowed to have a (proportionate) fee for more expensive payment methods (and indeed, I think this is a fairer way of doing things).
But the OfT ruling hasn't required them to bring in a CC fee, which is what the statement seems to imply. I guess it could be interpreted as "it's only 2% because we're complying with the OfT ruling, otherwise it would be much higher".
It's also a bit cheeky when there is a £6 'booking fee' that already easily covers these costs.0 -
Yes, they're allowed to have a (proportionate) fee for more expensive payment methods (and indeed, I think this is a fairer way of doing things).
But the OfT ruling hasn't required them to bring in a CC fee, which is what the statement seems to imply. I guess it could be interpreted as "it's only 2% because we're complying with the OfT ruling, otherwise it would be much higher".
It's also a bit cheeky when there is a £6 'booking fee' that already easily covers these costs.
The £6 booking fee will no longer exist, it will be included in the headline fare. Sure they may include it in the cost breakdown, but one airline's booking fee is another's fuel surcharge.
As for the 2%, I suspect they haven't just taken the % "commision" they pay into account but anything they can think of they can book as a cost associated with processing credit cards. Or maybe they have done a deal with their bank where they actually pay 2% and get discounted debit card processing. Or maybe they are still creaming off a few pence per transaction, who knows. However while there are plenty of sneaky tricks Ryanair use which it's fair to berate them for, not sure this is one of them.0 -
I don't Ryanair are that large in terms of turnover. I'd have thought the likes of Thomson are far larger and their charges are higher:Article 19 of Directive 2011/83/EU on Consumer Rights will prevent Ryanair from charging more than it costs them. I find it hard to believe that a company as large as Ryanair pays as much as 2% to process a credit card payment. Although this percentage might be common for small retailers, very large businesses negotiate much lower percentages with the card processing companies. I doubt we've seen the end of this story.
http://www.thomson.co.uk/editorial/legal/credit-card-payments.html0
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