MSE News: Ryanair 'sticks two fingers up at passengers' with new card fees

graemedl

BennyTheBoy wrote: »

I would just like to say that while I disagree with the charges for paying on Credit or Debit cards and I agree that Ryan Air in particular should be made to add these to there healine cost please dont forget that the operator pays huge amounts for you to pay by these methods so that you can pay it off over a prelonged period if using a credit card.
I work for a tour operator and we pay a massive 3.5% for each CC payment but make it clear to our clients that any CC payments will carry a charge of 2.5%. So we obsorb 1% of the charge. Why should we?
However we dont charge for debit cards even though we stil pay 60pence per transaction.
This has only been in the last few years as for some reason banks now see ALL TRAVEL COMPANIES no matter how long you have been operating for as a high risk. Even though your money has to by law be protected under a variety of different schemes.
At the end of the day we pay for customers to pay us and where credit cards are concerned why should your ability to pay for something over a prelonged period be made free? We pay for it and it comes from our profits. Why shouldnt you?

Finally I would like to add that the only way we (cosumers and companies) can ever tackle this properly is to sort the entire banking system out and say no to charges that companies are charged and then make charging clients illegal. That way everyone is on the same level playing field.

Ben:mad:

Presumably your company takes the 1% hit because it can and because it makes what you are selling seems more competitive than if you declared a 3.5% rate - which is a tenner on a £300 holiday.

The credit card company charges 3.5% because 1) the market can bear it, 2) as a company is supposed to be big enough to look after itself it doesn't need protection from larger (duopolistic) companies.

As to tour companies being high risk, presumably the CC providers have had to stump up often enough in claims to regard them as a bit more of a risk than say a clothes shop.

Compared with that the 60p debit charge is nothing - you sell a £60 flight and your company loses 1%, you sell a £600 holiday and its 0.1%. Are the margins so that tight that 60p is an issue?

lfc84

http://www.cashpassport.com/1/Global/Ryanair/UK_BK1538_CP_Ryanair_UGTC_V1_020811_F.pdf

http://webcache.googleusercontent.com/search?q=cache:3wMdPXQxr5IJ:www.cashpassport.com/1/en/Ryanair-test/About-Cash-Passport/Fees-Limits/+ryanair+mastercard+%C2%A3150+cashpassport&cd=1&hl=en&ct=clnk&client=firefox-a

NFN

Ryanair have been playing around with add ons and manipulation of prices for as long as i can remember.
I stopped using them when attempting to book out and back legs found that although i was entirely flexible with the dates once i'd ticked the outward leg the inbound one would change to a higher price when applied ,making it impossible to get the cheapest on offer.
Yes they do still with add ons offer some very cheap fares ,but as stated elswhere they rarely excist at times and to places that are popular travelling without luggage is hardly an option for families going on holiday either.
But for me the real problem with budget airlines on top of those mentioned is the ridiculous departure times to anywhere with one flight a day,as an example i tried to book to Palermo with Easyjet as they fly direct but the flight leaves Gatwick at 6.30 with a 150 mile drive plus check in times it means getting up in the the very early hours and the reverse 11.0 in the evening return.
And it was more expensive than flying Alitalia with a choice of departure times with a change over in Rome of 25 minutes ,this is only one example of budget airlines not being budget.
With all these airlines it's a changing market so you have to check around at the time of purchase ,my last example was Alicante out of Stansted ,i ended up with Air Berlin ,human departure time ,nice staff ,no 400yd check in ,snack on board ,and cheaper in a fairly busy period than RA, this may have changed but again it's always worth a few minutes on the internet checking the airlines own websites (they always to me have been cheaper than using comparison sites)and checking them out.

lfc84

Minimum amount you can load on your Card £150

Monthly inactivity fee debited from your Card if it has not been used for 6 months £2

And

Negative balance fee £10

So....lets get this right...

Lets say, you apply for the card, you top it up with £150 and then spend £150 on flights. The balance on the card is now zero.

You then put the card in a drawer at home and dont use it.

Then after 6 months they charge you £2.50 for not using it.

You then get charged £10 for a negative balance.

You then have to pay £150 to clear the negative balance and top up the card !

oldvicar

In a way this change makes things clearer, and should be (cautiously) welcomed.

I think it is easy to understand looked at this way: Deposit money in advance with Ryanair (ie the cash passport) and don't pay the supplement. Pay any other way and its a supplement of £6 per flight. Simples.


EDIT: Having read the details of how the card operates, I don't welcome it any more !!

mikeeboy

lfc84 wrote: »

You then put the card in a drawer at home and dont use it.

Then after 6 months they charge you £2.50 for not using it.

You then get charged £10 for a negative balance.

You then have to pay £150 to clear the negative balance and top up the card !

This is the only bit of this that's bugging me. The only solution seems to cancel the card then reapply for a new one each time you fly. An inactivity charge of a prepaid card has to flout some kind of ruling?

lfc84

7 Redeeming Unspent Funds
7.1 You may redeem the balance of any unspent funds in Sterling, only through Card
Services. Payment will only be made to a UK bank or building society account in
your name.
7.2 A cashout fee may be charged for redeeming unspent funds on the Card through
Card Services if: (i) you redeem unspent funds on the Card before the Termination
Date (other than as a result of a cancellation notice during the Cooling Off Period
in accordance with clause 2.5); or (ii) you redeem unspent funds on the Card after
a period of twelve (12) months from the Termination Date.


Cashout fee is £6

lfc84

2.5 You have a legal right to cancel your Card up to 14 days after you have purchased
a Card, without being charged a cash out fee – this 14 day period is known as the
“Cooling-Off Period”. If your Card is cancelled, we will block your Card immediately
so it cannot be used and you should also ensure that you destroy your Card (and
any Additional Card). You can cancel your Card by calling Card Services. Once
we have received your cancellation notice, we will process and refund the funds
remaining on your Card within 30 days in accordance with clause 7.1. You will not
be entitled to a refund of money you have already spent on transactions authorised
or pending, or any fees for use of the Card before the Card is cancelled.

momin1968

i have to say i have been useing the prepaied cards for a few years and they have saved me a lot of money,but at the moment i do not know where to go to get one any ideas ??

highanx1ety

I Have taken to checking the B.A. price before I make a booking. I booked a return flight from Gatwick to Malaga for less than either Ryanair or Easyjet were charging. Not only will I be saving money I will be travelling in comfort.