3.5% surcharge for paying by credit card

Voyager2002

pendragon_arther wrote: »

Making a Section 75 claim

There are some limitations to when a card company is liable along with the retailer or trader. The item or service you bought must have cost over £100 and not more than £30,000.
However, to claim under Section 75 you don't have to have paid the full amount on your credit card – the card company is liable even if you made only part of the payment (a deposit, say) on your card.
It's the value of the goods you're buying that is key - not the amount paid on the card.


However, I wrongly thought the same protection applied to debit cards as I always pay by this method so maybe I should get a credit card now.

Agreed. However, you do have some protection when you pay using a debit card that bears the visa or mastercard logo, although S75 protection is stronger.

SW17

Murphy_The_Cat wrote: »

Thanks for that link agrinnall

its clearly not being enforced,as the credit charge fees that are being applied don't accurately reflect what thethe merchants are being charged (unless my small business has managed to secure rates that are 50% better than the likes of Opodo.

In general I would say that these fees have come down in the travel industry at least since this legislation came in, though it is not always transparent since they can apply flat fees as well (eg British Airways) as long as the they can show that their overall charges don't exceed their costs. You are right in the case of Opodo, they appear to be charging 2.5-3% more for Visa/MC credit card vs Visa/MC debit. Just one more reason to add to the long list of reasons not to book with them...

cherry76 wrote: »

TA very reputable, tickets will be electronic as soon as I pay in full. I am not concerned it is hubby who is making a fuss. Once I have got my tickets, I should not be concerned if the company goes bust. Am I right? Thanks

IMO, if the travel agent was so reputable, they wouldn't be charging a 3.5% fee for a credit card payment vs debit card as it is against the law for them to do so (unless they have done a very bad deal with the CC providers). Maybe mention the above legislation to them and see what they say. Realistically this charge should be no more than 1.5-2%. Or of course pay partly by credit card as advised above, to get S75 protection and reduce the fee, if you still want to use this agent.

InsideInsurance

pendragon_arther wrote: »

However, I wrongly thought the same protection applied to debit cards as I always pay by this method so maybe I should get a credit card now.

It can....

S75 comes from the Consumer Credit Act and applies to finance regulated by it. A credit card is hence why you get S75 protection.

A debit card in itself isnt as its not credit however if you are in your authorised overdraft (or the transaction takes you into your overdraft) then the overdraft is CCA regulated and so you get S75 protection. If your payment leaves your account in the black though there is no S75 as no credit has been involved.

Chargecards dont get S75 protection because their credit isnt covered by the CCA due to the fact they are payable in full monthly.

All cards have the option of chargebacks but this is always on a best endeavors basis rather than S75 which is statutory rights.

littlereddevil

I assume paying a travel agent was much cheaper than booking with the airline direct?

pendragon_arther

littlereddevil wrote: »

I assume paying a travel agent was much cheaper than booking with the airline direct?

Usually yes, as they bulk buy seats.

Ianwzzz

Murphy_The_Cat wrote: »

Thanks for that link agrinnall

its clearly not being enforced,as the credit charge fees that are being applied don't accurately reflect what thethe merchants are being charged (unless my small business has managed to secure rates that are 50% better than the likes of Opodo.

Totally agree. I run a small business and we pay on average 1% for accepting credit cards.

PeacefulWaters

Regulations will only be enforced if they are challenged.

1) Challenge the merchant.

2) If challenge (1) fails advise them that you will take them to the small claims court to recover the excessive charge.

3) If challenge (2) fails carry out the threat.