MSE News: Which? launches card surcharge super complaint

glossyhair

Deleted_User wrote: »

But you can pay by debit card, which generally (not always) doesn't attract a fee.

As to what they prefer - debit card payments as a rule, which is why the pricing tends to favour them.

Sorry, but you're wrong there. I always pay by debit card (I choose not to have a credit card) and I don't recall ever NOT being charged a fee. It may sometimes be a little lower than a credit card but there is still a fee to pay.

Of course it is reasonable for retailers to want to cover all their costs, however these fees are usually disproportionate to the amount the supplier is charged and quite simply an excuse to get extra money out of the consumer.

Well done to Which?

[Deleted User]

glossyhair wrote: »

Sorry, but you're wrong there. I always pay by debit card (I choose not to have a credit card) and I don't recall ever NOT being charged a fee. It may sometimes be a little lower than a credit card but there is still a fee to pay.

Well, we'll just disagree on it, then. I often pay by debit card and am generally NOT charged a fee.

bitemebankers

Deleted_User wrote: »

But you can pay by debit card, which generally (not always) doesn't attract a fee.

It does at my local NHS Dental practice, who stiff you for paying by any card, at 50p per transaction.

I know for a fact that this is WAY more than their costs. It's just another way for them to overcharge by the back door when their rates are meant to be set by the NHS.

Wadsacash

JimmyTheWig wrote: »

That's only 0.5% which isn't unreasonable, is it?

Isn't it about charging for what it costs them, not making more on the deal? Thats why I believe it is unreasonable.

Wadsacash

glossyhair wrote: »

Sorry, but you're wrong there. I always pay by debit card (I choose not to have a credit card) and I don't recall ever NOT being charged a fee. It may sometimes be a little lower than a credit card but there is still a fee to pay.

Of course it is reasonable for retailers to want to cover all their costs, however these fees are usually disproportionate to the amount the supplier is charged and quite simply an excuse to get extra money out of the consumer.

Well done to Which?

I applaud Which? for this. I too could not believe the cheek of the spokesman from Ryanair on the news this morning (did anyone clock the cheeky smile on his face as he finished making his absurd point?). There are only two cards they won't charge for: both pre-payment cards. How many people have these? They don't even accept Electron. I've booked flights with FlyBe and they charged me for each passenger each way (as do Ryanair) for paying by debit card. But were there 4 transactions shown on my bank statement? No, of course not! That makes a mockery of the so-called 'transparent charging policy' they operate.
I wish we could get enough support for a national consumer boycott of Ryanair and the others, for just one month. It would deliver such a strong message and hit them where it hurts - the bank balance.
Rant over!

spikyone

Deleted_User wrote: »

But you can pay by debit card, which generally (not always) doesn't attract a fee.

Of course, but the article did mention a couple of instances where debit cards do incur fees.

Deleted_User wrote: »

As to what they prefer - debit card payments as a rule, which is why the pricing tends to favour them.

I would suggest that companies had historically built such costs into their pricing model, and that the advent of EasyJet, Ryanair, et al who don't even consider statutory taxes to be part of the price(!) have persuaded others to add card charges and bump up profits.
The fact that the fees charged to the consumer bear no resemblance to the actual cost leads me to believe that companies have increased prices for credit card transactions, rather than reducing prices for debit card/cash transactions.

davidgmmafan

"The main issue here is that these businesses are explicitly identifying these charges. I would imagine in most cases this is to make their headline pricing look lower."

Or the reverse. They have already included the cost of processing payments when setting they're prices then thought oh look everyone else is doing it, best have some of that.

I recall once trying, and failing, to book a train ticket online. The website was difficult and when I got to the end it wanted to charge something, 50p I think, to pay by debit card. This was clearly the only option as it was online. So instead I went to the station, you know with an actual staff member there, and paid on the same card for which there was no fee.

I know with train companies you can order from any, but what about other areas where they ALL charge some kind of rip off fee?

Well done Which, the only other thing I point out is it is remarkable that this didn't come sooner.

td_007

Adding on charges to use a credit card is slowly catching on not because I believe to pass on the actual cost but as a revenue making stream same as 0845/0870 numbers. Also, it is cashing in on the fact that other payment options are limited or not available at all. This will see an upward trend as previously companies could argue with CC providers on fee increases as they were not passing it on to customers in an "obvious" manner. But now with charges called out it will simply be a question of the CC providers raising charges to the companies who in turn simply pass on to the customers -

Skimad

I wasn't that amazed when said there was a surcharge of X pounds for using a credit card. But when I got my debit card out & they said the same charge applied I was intrigued, NEVER been charge for a debit card transaction before.
Ironic thing is I always pay cash there now so undoubtledly end up spending LESS MONEY!! Where's the commercial sense now!!?:beer: & stop for a pint on't way home with my savings!! Lol

callum9999

spikyone wrote: »

Sorry but I don't agree with this kind of argument.

If you buy something online, you can't (ordinarily) pay cash or cheque. There is no reason in the world for websites to add a separate surcharge for paying by card; it's just a con to make headline prices look lower.

Secondly, which do you think businesses prefer - an automated electronic transaction that puts the money straight in their accounts, or a wedge of cash that someone then has to count, bank, etc.? There are costs associated with using cash, it's just that it's far less easy for the retailer to justify them to the "average" consumer.

In Ryanair's casse it's an even bigger scam - no fees if you use a type of pre-payment card that, coincidentally, they offer... (inserts not-at-all-surprised smiley)

I'm pretty sure they don't offer prepaid Mastercards - I haven't seen any on the site anyway.

But what would it matter? You could still get one elsewhere if you wanted - and surely if they promoted a Ryanair Prepaid Mastercard they would be making it easier for people to avoid the surcharge - so why moan about it?