Airlines charging for using credit cards?

wirm

I have noticed that most of the airlines charge for paying with a credit/debit card!

Are they really allowed to do this? BMI charge £4!

zx2011

BMI only charge for using a credit card.

There's no charge for using their own BMI credit card or a debit card.

Paying by credit card gives extra protection should there be a problem.

Also there is a credit card merchant fee that thier credit card processing company will charge to BMI as well.

This "extra protection" and the "fee" has to be paid somehow and it's BMI's policy is that only credit card holders should pay it and not be subsidised by those that pay by debit card.

wirm

Easyjet charge for using all cards except Visa Electron.

Flybe also charge!

Are these airlines allowed to charge us?

Reaper

Absolutely. VISA used to prevent merchants from charging different amounts for a using a credit card but the courts decided that they were not allowed to do this. Therefore customers can now get a discount for cash/debit card.

You see it as an extra charge for using a credit card, I see it is a discount for cash.

Mr_B_13

I suppose that they can charge you what they want, so long as they tell you up front (ie before your booking is confirmed).

I have never understood why they charge and other retailers do not - someone once told me that it is because their margins are so tight.  However, with the trend in cheap ticket prices but suddenly a massive increase in tax/charges you would think that they would also hide this cost (not so well hidden - strange how with some of the airlines, eg flybe, the offer price plus tax charges equals almost the same price as they normally charge for the fare plus tax/charges at other times  ??? ::)).

Mr B

wirm

strange how with some of the airlines, eg flybe, the offer price plus tax charges equals almost the same price as they normally charge for the fare plus tax/charges at other times

Tonight I price flights at £7.00 one way! Add fees etc and it was £40!

Rafter

Whenever you use a credit card, the merchant (shop, airline, mail order company, restaurant) is charged a fee by the bank of between 0.5% and 5%.

This fee is to cover the costs of processing the transaction, fraud, insurance and the cost to the bank of lending the money interest free if you choose to pay your credit card bill in full.

The fee charged varies by retailer depending on the risk and costs to the bank.

When you pay by debit card, the merchant is just charged a processing fee because there is no interest free period, no insurance etc if something goes wrong. See the news stories about Courts Furniture customers who now regret not using a credit card!

The airlines pay quite a high fee because of this risk. Airlines and travel companies do go bust and the banks have to refund their customers who used a credit card in this event.

Think of it this way, are you happy to pay a £4 charge as insurance that you can get a refund from your bank if something goes wrong, and for getting interest free credit? If not then use your debit card and don't pay the charges.

In most situations there is no additional charge between credit or debit cards. The debit card and cash customers are in this situation subsidising credit card customers by paying a small amount more.

R.

wirm

The thing that annoys me is that they advertise flights at 50p or even free in my case last night. then by the time you have paid for you flights you are charge over ten times as much!

Last night I priced flights at 50p one way, by the time I added taxes, fees and then credit card fee the total was well over £70!