German supreme court: Ryanair Creditcard charge unlawful

LemonTree_3

Hello,

There was a decision made by the German supreme court last week (20 May 2010).

Basically, it is saying that Ryanair's policy of making Visa Electron card the only
possible free paying method is unlawful because only very few people do have such a card.

See here for the original link
http://www.tagesschau.de/wirtschaft/ryanair132.html
and here the translation
http://translate.google.de/translate?u=http%3A%2F%2Fwww.tagesschau.de%2Fwirtschaft%2Fryanair132.html&sl=de&tl=en&hl=&ie=UTF-8

I am aware that Ryanair has now replaced the Visa Electron card by a Mastercard prepaid. But still, the court's argument also applies here, isn't it?

I am curious to hear about people's opinion.
Also, I am wondering whether this court's decision would also apply in the UK or elsewhere in Europe?

I have just made a test booking with Ryanair. Despite the court's decision, Ryanair is still charging Credit Card fees.

Looking forward to hear opinions.

iceman_2

I imagine the german courts can't do much to regulate an irish website. Maybe it's more complex than that though.

fifeken

Ryanair's take on it:

http://www.ryanair.com/en/news/german-supreme-court-rules-that-credit-card-fees-are-legal-as-long-as-there-is-a-valid-free-payment-method

The court found in their favour the way they look at it.

LemonTree_3

fifeken wrote: »

Ryanair's take on it:

http://www.ryanair.com/en/news/german-supreme-court-rules-that-credit-card-fees-are-legal-as-long-as-there-is-a-valid-free-payment-method

The court found in their favour the way they look at it.

Thanks for that. According to the above Ryanair link, they say

The German Court ruling clearly said that credit card fees are legal and can be applied as long as a widely available free payment method is offered.

I don't think that a Prepaid Mastercard is a widely available free payment method. In fact, most of people don't have such card. That is why Ryanair choose this card to be one without "administration fee".

Bob_the_Saver

LemonTree wrote: »

Thanks for that. According to the above Ryanair link, they say
I don't think that a Prepaid Mastercard is a widely available free payment method. In fact, most of people don't have such card. That is why Ryanair choose this card to be one without "administration fee".

Anyone can get one (or a few) for free if they read MSE

budgetflyer

Yes its the easiest possible card to get. You dont even have to wait for 1 to be posted out. Maybe not the very cheapest way,but I walked into Phones4U, 20 mins later walked out with 1 preloaded with £700 to pay for 6 RTN flights. Have used it several times since, no problem, no booking fees.
Some people spend their whole life looking for problems instead of solutions.

LemonTree_3

@budetflyer and @Bob the Saver: I agree it might be fairly easy to get a Prepaid Mastercard if you live in the UK.
My situation is that I'm working overseas. I cannot simply walk into a Phones4U shop and get a prepaid Mastercard. The banking sector in other (European) countries does not have as much competition as in the UK.
For example, in Canada, where I'm currently working, it is impossible to get a Prepaid Mastercard from Neteller as their service is not offered here.

MarkBargain

Bob_the_Saver wrote: »

Anyone can get one (or a few) for free if they read MSE

They are not free though are they, as Mastercard Prepay costs the customers one way or another, be it is load fee or transaction fee. I have a FairFX card and the charges are about 1.5% I think, but that is not free.

I think companies should include credit card charges in their normal prices, but failing that the most they should charge is a reasonable amount based on what it costs them. A family of four flying return with Ryanair has to pay a £40 credit card fee, and that cannot be right!

Donnie

Of course the ruling only covers Germany, so unless you are booking from there I don't really see the point of this thread. Credit card use in Europe is much less common than in the UK. Payments from bank accounts are much more common. Perhaps that is the free option they have open to them.

budgetflyer

MarkBargain wrote: »

They are not free though are they, as Mastercard Prepay costs the customers one way or another, be it is load fee or transaction fee. I have a FairFX card and the charges are about 1.5% I think, but that is not free.

I think companies should include credit card charges in their normal prices, but failing that the most they should charge is a reasonable amount based on what it costs them. A family of four flying return with Ryanair has to pay a £40 credit card fee, and that cannot be right!

No , A family of 4 booking rtn flights with a Phones4U PP Mastercard would pay a tenner for the card. Then there are no booking fees thereafter. If they use it only once + then throw it away then its cost them £1.25 pp per flight booking fee.
If they are smart enough to keep it + use it again for their next break, then that cost is effectively halfed + so on.
What you don't seem to get is that Ryanair are going to get their money one way or another. Thats why they are in business-to make money. They could add it on to EVERY fare and charge NO FEEs what so ever, or they can allow stupid people to pay a £5 booking fee, and the rest of us that follow the basic instructions to get a cheap "Fees Free" flight.
I prefer the second option.

LemonTree_3

Donnie wrote: »

Of course the ruling only covers Germany, so unless you are booking from there I don't really see the point of this thread.

In fact, I'm planning to book several flights for my family from Germany to the UK. But you are probably right, if you live in the UK then why should you bother with Ryanair's payment policy? It is a different story though if you cannot easily get that Prepaid Mastercard.

Donnie wrote: »

Credit card use in Europe is much less common than in the UK. Payments from bank accounts are much more common. Perhaps that is the free option they have open to them.

Unfortunately that is not the case. If you pay from a bank account then Ryanair also charges the same as using a Credit Card. Also in Germany the only "free" option is a Prepaid Mastercard.