Credit Card Payment Surcharges Question

Mizz_Pink

Hi,

Slightly different to insurance claims or overcharges....

My Dad has booked a holiday via his cc, but the holiday company have charged 2.3%, for him to use his cc. This is a lot higher than it should be and he would like to challenge it.

Can anyone direct me to info on here about what he should be charged or where he stands on trying to get this charge reduced?

Please and thank-you :j

dunstonh

This is a lot higher than it should be and he would like to challenge it.

How much is the published charge in their tariff?

an anyone direct me to info on here about what he should be charged or where he stands on trying to get this charge reduced?

He can be charged whatever the company set their charge to. If they have charged the correct amount it is not something you challenge .

Alpine_Star

Mizz_Pink wrote: »

Can anyone direct me to info on here about what he should be charged or where he stands on trying to get this charge reduced?

Please and thank-you :j

Since 2015 interchange fees (which make up about 70% of the cost to the seller) were capped at 0.3%.


http://www.bbc.co.uk/programmes/b06z0tzn


If you can be bothered you could issue a claim in the small claims court under the Unfair Terms in Consumer Contracts Regulations which are now incorporated into the Consumer Rights Act as the seller can only charge what it costs them.

Alpine_Star

From The Consumer Rights (Payment Surcharges) Regulations 2012 Guidance:


''Businesses sometimes add surcharges to the price of goods or services when the consumer chooses to pay by a particular method, for example by using a credit or debit card. The Regulations prohibit traders in England, Wales, Scotland and Northern Ireland from charging consumers more than the direct cost borne by the trader for the use of a given means of payment. In other words, they ban excessive payment surcharges being charged to consumers, while allowing traders to recover the fees directly charged to businesses for taking payments from consumers.''


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/452405/BIS-15-343-BIS-payment-surcharges-guidance.pdf

dunstonh

Thanks Alpine Star. I didn't spot that change in 2015.

societys_child

But . . . there are more costs than just the interchange fees, including card security costs etc. according to some merchants.

http://www.telegraph.co.uk/personal-banking/credit-cards/eu-ban-on-creditcard-fees-backfires--youll-still-pay25pc-to-spen/

Ryanair told Telegraph Money that the charge reflected the cost of processing credit card payments, including bank fees.
Easyjet took the same line. A spokesman said: “The 2pc transaction fee applied to credit card payments covers all costs associated with processing the transaction of which the bank charge is just an element.
“Other associated costs have increased significantly, particularly in relation to card data security.”

Alpine_Star

societys_child wrote: »

But . . . there are more costs than just the interchange fees, including card security costs etc. according to some merchants.

http://www.telegraph.co.uk/personal-banking/credit-cards/eu-ban-on-creditcard-fees-backfires--youll-still-pay25pc-to-spen/

I know but as I said the interchange fee makes up about 70% of the cost:


''Interchange fees are only part of the Merchant Service Charge, but payments experts suggest that it makes up around 70pc of the fee that retailers are charged. So with this new cap in place, it’s hard to see how companies could justify charging any more than 1pc for paying by credit card.''


http://www.telegraph.co.uk/money/consumer-affairs/why-are-airlines-still-charging-us-to-pay-by-credit-card/