Paying for holiday with CC or DC?

Crab

Hi

I'm about to book some flights worth in total over £2300. The travel agent says if I pay by credit card, there is a 2% charge, but if I pay by debit card there isn't.
I've always felt big spends should be on credit card as you are offered some protection, but I am not sure how true this is, and would I not be covered by travel insurance were anything to happen to my flight? It's with a reputable travel agency so I am not overly worried.

Should I just pay by debit card (I do have the funds sat in the bank) or by credit card but pay the 2%?

Thanks

Paul_Herring

You don't need to pay the full amount on the credit card to get Section 75 protection. Ask to pay (say) £100 (+2%) on the credit card, and the rest on the debit card.

SimbaSimon

You really need to split it down to 2 payments.

First pay £100 on your credit card with the 2% fee, so £102 total.

Then pay the rest with your debit card avoiding the fee.

This way you'll only pay a couple of pound in fees but if they should go bust/close down/explode then you'll be covered on your original credit card for the entire amount.

The other way is if you can book flights elsewhere which don't charge a credit card surcharge, e.g. expedia or similar. But this might not work if your after particular flights with a particular airline.

Crab

Thanks so much! It pays to ask! :T

dazza.mk

Keep in mind that if you are buying via a travel agent you don't have full Section 75 coverage as the travel agent is only contracted to supply a ticket not provide the actual service, and it is this that is covered (unless its an in-house package holiday of course)

Crab

Oh no! So I am not covered at all then? It's a Flight Centre, and I am just buying flights through them.

BigDave81

Does the ATOL / ABTA cover it if the company fold?

Crab

It is an ATOL/ABTA registered company, so I guess so. Yes?

SimbaSimon

Crab wrote: »

Oh no! So I am not covered at all then? It's a Flight Centre, and I am just buying flights through them.

My understanding would be if the airline went bust, then flight centre should find you a new flight without having to go through any claims process as they are the agent.

If flight centre went bust section 75 should cover you for this and claim back on the card.

BigDave81

Crab wrote: »

It is an ATOL/ABTA registered company, so I guess so. Yes?

I would have thought it would be ok from this point then as this covers the costs if company or airline goes insolvent, someone correct me if I am wrong here obviously

Crab

Thanks, everyone.

Flight Centre are pretty big so I am hoping they should be ok (mind you, so was Woolworths).