Credit card charges for booking your holiday

paul70a

Why do holiday companies and travel angents charge you, for using your credit card to pay?

My understanding is that Visa/Master card, both non profit making organisations, charge the companies a very small charge for each transaction they make, ie 20p. So why can they get away with charging us 2.5% of the cost? I also noticed today, that some companies are also charging £1per person for using a debit card!

Any thoughts?

jd87

paul70a wrote: »

My understanding is that Visa/Master card, both non profit making organisations, charge the companies a very small charge for each transaction they make, ie 20p.

Is this a wind up?

Didn't mean to click "thanks" by the way.

td_007

paul70a wrote: »

Why do holiday companies and travel angents charge you, for using your credit card to pay?

My understanding is that Visa/Master card, both non profit making organisations, charge the companies a very small charge for each transaction they make, ie 20p. So why can they get away with charging us 2.5% of the cost? I also noticed today, that some companies are also charging £1per person for using a debit card!

Any thoughts?

Card companies charge merchants 1.5-3% (depending on volume etc) of the transaction value plus in many cases also a flat rate fee per transaction. The 20 p is the flat rate. Travel agents are simply passing on the cost of servicing the credit card to you.

Paul_Herring

paul70a wrote: »

Why do holiday companies and travel angents charge you, for using your credit card to pay?

You're asking the wrong question. It should be:

"Why do all other companies add on the CC charge to the purchase price of all their goods (even if you don't pay by CC) when holiday companies and travel agents don't?"

Inactive

paul70a wrote: »

My understanding is that Visa/Master card, both non profit making organisations,

:rotfl: Thanks for the laugh.;):D

simon_templar_2

Are they both charities?