Government to Ban Fees for Using Credit Cards

grizzly1911

dach wrote: »

if the charge by the credit card company to the dvla is 2% and it costs me £180 to tax my car then paying £2.50 is cheaper than paying the full cost of the charge or am I missing something??
or should we ask the people who pay upfront by debit card or cash to subsidise the ones who have 6 weeks free credit

The "commision" charge is made up of various facets. I guess that as the DVLA is sound financially, is high volume, non exotic transaction. highly automated they can command a lower rate than 2%.

What about those who only pay £30 RFL but still get whacked £2.50.

Heard a Taxi firm on the BBC justifying their charge 10% on the basis of having to fund the equipment, processing charge, chargeback fee in case of fraudulent transactions) and intermediary fee. they also made the point that taxi fares were regulated which didn't take account of this payment method.

callum9999

grizzly1911 wrote: »

Well it isn't really because it is part of the cost of the flight that they missed off the advert to make them seem cheaper than leprechaun air.

It is possible to buy the flight and pay zero credit card fees, ergo it ISN'T part of the cost of the flight.

As a one-off on a spur of the moment flight then yes, but otherwise I can't see why so many people pay these fees. I've flown on about 30 budget flights and have only paid a payment fee twice (as I was flying on a foreign airline and had no convenient way of getting their free payment method). As long as Easyjet and the like offer a free option that people are able to get (I'm not happy with the new Ryanair method as it seems impossible to use without paying a fee) then it suits me. Their laziness/stupidity subsidises my holidays.

grizzly1911

callum9999 wrote: »

It is possible to buy the flight and pay zero credit card fees, ergo it ISN'T part of the cost of the flight.

As a one-off on a spur of the moment flight then yes, but otherwise I can't see why so many people pay these fees. I've flown on about 30 budget flights and have only paid a payment fee twice (as I was flying on a foreign airline and had no convenient way of getting their free payment method). As long as Easyjet and the like offer a free option that people are able to get (I'm not happy with the new Ryanair method as it seems impossible to use without paying a fee) then it suits me. Their laziness/stupidity subsidises my holidays.

I would expect the majority of users stump up as they are not all "regular" travelers.

The fact that Ryanair keep on shifting the "prepayment" method suggests to me that they are churning the model to catch people out

Roger1

SCO wrote: »

£12.95 for easyjet.

It's not, of course. EasyJet's charges are a mixture of a percentage and flat fee, or nothing at all.

I've just bought an easyJet ticket for a total payment surcharge of £0.00, and I know I am not alone.

What's nice about easyjet.com is that after flights and other options are selected, the page shows a price for payment by credit card, with other (lower) charges for other payment methods.

£12.95 may be what SCO elected to pay for their journey, but it simply isn't an accurate statement for easyJet passengers in general.

Greenst

I work for a small family run business, they work to a very tight budget, part of my job is to process customers orders. They can pay by cash ,cheque, credit card, debit card, or direct debit if they want to spread payments.
Theres no extras charge for any of these ways to pay. It takes about 30 seconds or so for me to process a credit or debit card transaction.
The payment system is very easy to use, all on line and secure.
I can't understand the excuses being given for A he cost and B the complexity of transactions?
I recently ordered some bathroom products the company didn't charge me any more for using my card, nor do many other companies, I just don't undetstand how any company can justify the charges, and I am processing some several thousand pound orders so It's Not a percentage thing.

pqrdef

Greenst wrote: »

I can't understand the excuses being given for A he cost and B the complexity of transactions?

You obviously don't see the bank statements. When the customer pays by credit card, the firm doesn't receive the full amount. The bank keeps a cut, which can be anything up to 5%.

chattychappy

pqrdef wrote: »

Y The bank keeps a cut, which can be anything up to 5%.

Which can mean the hit on a margin can be roughly 6% because of the effect of VAT. (The fee is charged on the amount collected, not the VAT exclusive amount. Since the retail price will include VAT, the fee is based on this figure. Since this "uplift" is not, in itself VAT, it cannot be reclaimed as an input cost.)