Credit Card Surcharges and Invoice Cost

Pete10k

Hi Guys

Thanks for any help in advance.

I called the travel agency tonight to pay off the balance on our holiday. Figuring I may as well use the protection offered by my Mastercard I read the small print on the invoice which clearly states 1.5%. The balance was £495 so £7.50 odd did not seem wholly unreasonable.

I was then informed over the phone that the surcharge had increased to 2.7% meaning the £7.50 had increased to £13.33 (ish). I proceeded with the transaction but I have a number of queries Im hoping you may be able to help me with:

1) Since the introduction of legislation banning excessive credit card charges it has become illegal to charge consumers more than what it would cost for a typical debit card payment. Im seeing figures of 2% banded about, does this sound about right? if so It would appear I have grounds for a 0.7% refund.

2) If the invoice states 1.5% surely thats the final cost for services? I have my own business and I could imagine my clients responses if I tried to change the terms of existing invoices once issued....

Many thanks

Pete

YorkshireBoy

Pete10k wrote: »

Since the introduction of legislation banning excessive credit card charges it has become illegal to charge consumers more than what it would cost for a typical debit card payment.

I don't think that's correct.

They are allowed to pass on what it costs them. If they can demonstrate it costs them x% to process a credit card transaction then they can charge x%.

2) If the invoice states 1.5% surely thats the final cost for services?

I would agree with this.

However, going forward, the best time to use the credit card is to make the deposit (so the fees are less). It's only necessary to pay 'something' on the credit card to secure section 75 protection. BUT...are you sure you're getting section 75 protection? Unless there's a D-C-S relationship then you won't be and anything you pay in fees will be money down the drain!

pvt

It sounds like the 1.5% quoted was not specifically part of the invoice value, but was a rate they quoted if you wanted to pay the invoice by CC.

If they informed you that it had gone up to 2.7% BEFORE you paid, then you agreed to it and I don't think you have any comeback. It isn't an outrageous amount, and in line with what they probably have to pay their card handler.


If you had chosen to book with them based on seeing that you could pay by CC at 1.5% then it would be different, but that doesn't sound to be the case.

Pete10k

Thanks YB - Again I may be mistaken but I thought there was a minimum spend for CC protection? (apologies my consumer law is somewhat lacking).

Most of the information Im referring to is summed up in the following quote from Which: (sorry I cant post the link being a newbie)

'Charging excessively to pay by card is now against the law. Companies charging more than 50p to pay by debit card or 2% to pay by credit card need to be reported'

Additional information seems to infer European legislation being passed on 1st November this year to further clamp down?

At the moment I'm inclined to complain in writing referring specifically to the invoice costs issue and foregoing the surcharge issue.

Pete10k

pvt wrote: »

It sounds like the 1.5% quoted was not specifically part of the invoice value, but was a rate they quoted if you wanted to pay the invoice by CC.

If they informed you that it had gone up to 2.7% BEFORE you paid, then you agreed to it and I don't think you have any comeback. It isn't an outrageous amount, and in line with what they probably have to pay their card handler.


If you had chosen to book with them based on seeing that you could pay by CC at 1.5% then it would be different, but that doesn't sound to be the case.

PVT - I was only informed of the 2.7% once I queried it as I had checked the cost prior to the call. As you mentioned, its no big deal, and not a massive amount but Id rather pull them up on it if theres any recourse.

They did mention that they 'should' of sent out a revised invoice, which sounded awfully convenient

YorkshireBoy

Pete10k wrote: »

Again I may be mistaken but I thought there was a minimum spend for CC protection?

The purchase price of the item has to be between £100 and £30K, but even a penny of it (if the retailer will take it!) on a credit card will secure section 75 protection...IF there's a D-C-S relationship...and with travel agents there often isn't.

bigadaj

Pete, if your original invoice states the lower fee for credit card payments then that is what should apply.

Simply speaking, you formed a contract when you paid your depsoit and if the lower fee was stated as part of ten documentation then that is what you should pay. This contract can only be varied with the agreement of both parties which you didn't supply.