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Charges for using Credit Cards

Why do travel companies, airlines etc. apply a charge for paying by credit card. Travel companies are already earning commission when you arrange a holiday through them and on top of this thay expect you to pay 2.5o% on the amount charged? Does anyone know what the actual charge is for the holiday companies, I have heard it's only about 30pence per transaction.

Comments

  • lisyloo
    lisyloo Posts: 30,113 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The cut their prices to the bone because of competition.
    The charges are beacuse of their charges for CC payments, so they would claim they are merely passing these on.

    I don't know actually charges, but 30p sounds more like the debit card price and not the credit card price.

    Perhaps someone that runs a business can confirm.

    However you are free to vote with your feet and go elsewhere or pay by debit card.
  • dzug1
    dzug1 Posts: 13,535 Forumite
    10,000 Posts Combo Breaker
    The charge won't be 30p per transaction on a credit card. It may well be 30p PLUS a percentage of the transaction though.

    They do it because they don't actually earn that much commission on a sale. In fact some airlines don't pay any commission at all.
  • Ritchie74
    Ritchie74 Posts: 171 Forumite
    It's what what Mastercard & Visa charge the retailers. The Travel Agent (and others) shouldn't make any profit from passing the charge to you.
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