ATOL and credit card protection for a holiday

Mr_K

Looking into booking a package holiday in half term (expensive !)

Trying to find safe ways to pay and being protected if the agent went under. Most 'experts' say that credit card is the safest way to be covered . I'm not sure that's always true or the most cost effective way. If it's a package holiday and the the agent is ATOL registered you are protected no matter how you've paid as far as I can see. All of them do the charge the 'credit card fee con', but if you use a debit card its free. Am I right in thinking if they are ATOL protected the credit card protection is just duplication ? Also Visa Debit also seems to offer a level of protection for your money too. ATOL also make a point of saying that if you've paid by credit card they will NOT pay out; you have to claim against the card company. Not sure if this is quicker/simpler or would just make the process longer/more complicated ??

So would be a debit card be safe for this type of holiday ? If so, the 'consumer expert' numpties writing articles saying use a credit card always need shooting, as the consumer is overpaying/duplicating cover.

mcfisco

Why not pay the deposit [or at least £100 of it] with the CC and the rest with a DC?
Belt and braces for a couple or three quid extra

Moonchild

You have the situation in a nutshell.

It's not just duplication of protection, it can make it harder to claim back monies as the CAA & your credit card company will send you from pillar to post. Although some credit card companies can pay out in a hurry, there are lots of anecdotal stories of them delaying paying out.

If your holiday is ATOL bonded your money is 100% safe however you pay. Pay by debit card, you will get a refund if the company goes bust.
Pay by credit card, the CAA will refer you to your credit card company who will have to refund you eventually, but the CAA will not refund you.

Credit card 'con' is unfortunate phrase. In travel the margins are so tight (7-12% normal), and merchant service charges are so high (2-3% typical) that travel companies have to encourage you to pay by other methods or pay a surcharge. Otherwise more companies would be going bust on a regular basis.

SteveJW

We were booked flight only with Holidays 4U, ATOL bonded and due to go on holiday at the start or August 2011. We put the claim in early September and the full refund was in our bank account by the start of November

Totally painless procedure, downloaded the forms online completed and posted, email confirmation they had received the claim.

We were lucky as we make a private arrangement with the hotel owner and managed to get a flight a couple of days later, would have been different if we had paid a large deposit and could not get there

Mr_K

Cheers for the info. Seems like debit card is the way to go if your holiday already has ATOL protection.

Moonchild wrote: »

Credit card 'con' is unfortunate phrase. In travel the margins are so tight (7-12% normal), and merchant service charges are so high (2-3% typical) that travel companies have to encourage you to pay by other methods or pay a surcharge. Otherwise more companies would be going bust on a regular basis.

Not much sympathy for travel companies margins given my holiday is £2000 during half term holidays and £1200 in the weeks before and after ! 2-3% credit card fee on £2k is a nice little profit for somebody. Hardly any other retailers penalise you for paying this way. More travel companies/airlines will go out of business if they continue to operate like this ( I can see why people take their kids will be taken out of school in term time too, no such luck for mine though, I wouldn't let them miss a day )

Moonchild

Mr_K wrote: »

Not much sympathy for travel companies margins given my holiday is £2000 during half term holidays and £1200 in the weeks before and after ! 2-3% credit card fee on £2k is a nice little profit for somebody. Hardly any other retailers penalise you for paying this way. More travel companies/airlines will go out of business if they continue to operate like this ( I can see why people take their kids will be taken out of school in term time too, no such luck for mine though, I wouldn't let them miss a day )

Ah, well just to help clarify as I do partly agree with you.

If it's a Tour Operator that owns the airline and hotel, fair enough they are increasing the prices over school holidays (i'm sure neither me or Mr K need a lecture on supply and demand btw!). But if it's a travel company who make their 10%, they are only making an extra 4% on you, so not massive profiteering. But obviously the hotel and airline are making much more money for minimal extra costs over this period.

Despite working in travel, i've my oldest child now at school so am finally understanding a lot of frustrations i've heard vented over the years

The "2-3% credit card fee on £2k is a nice little profit for somebody" - that somebody being the merchant accounts.. i.e. Barclaycard, Streamline etc. It's not the travel company, most subsidise the actual fee they pay. Thus the need to incentivise people to not pay by credit cards.