MSE News: Big brands fail to stop charging credit card fees after ban

badmemory

eskbanker wrote: »

i.e. the mere fact of using a business card makes it a business expense....

and if it for some (very obscure) reason it doesn't then would it mean, for example, that ex-employees of Carillion should expect their business card issuer to come after THEM for their business card debt if their co don't pay?

It either is or isn't a business card, it can't be both.

InsanityBeckons

Norwegian Air are STILL charging credit card fees some of the time. I can't see if it's down to the route, or when travelling, but they often force you to pay the fee else you can't book.
I guess they're hoping people won't ask for the money back as it takes time and effort, but I have usually got it. When you don't, then call the credit card company. If it's under 10 pounds they can't be bothered to investigate, so refund it on request.
Isn't there some official body than can penalise the company if they keep on doing this?

[Deleted User]

Presumably they're based in Norway, so not impacted by the regs.

Nick_C

The Payment Services Directive applies across the EEA, so covers Norway.

The EU Directive (PSD2) only bans credit charge surcharges for personal MasterCard and Visa credit cards. Surcharges can still be applied if use a Corporate Credit Card, an Amex Credit Card, or a Charge Card.

UK law goes further than the Directive and extends the surcharge ban to Amex credit cards and charge cards. But when you use a foreign website you are governed by the law of that country. So for example KLM can levy a surcharge if you pay with a personal Amex Credit Card.

If you are being surcharged by Norwegian for using a personal MC or Visa, then they are incorrectly identifying the card type.

squeezywheezy

Hi

i wonder can anyone help? I am wondering if I am liable to pay this particular fee?

I am currently in China with my husband and we have had to buy four flights with KLM, where they charged us approximately £22.00 per flight for paying with our visa cards – totally almost £90! We booked the flights from China and we used out visa debit and credit cards to pay. I have read that the EU directive covers you if you and the company's bank accounts are based in the EU. Our bank accounts are based in the UK. I would think KLM’s bank is also in the EU, but no doubt they have some loophole where they have a China branch putting them outside the remit of the new EU regulations. Does anyone know anything about this?

I can confirm that the fee seems to be applied to most cards on their website, however it does not apply to Visa electron, or the other options to pay which are chinese- ie unionpay, Alipay, wechat pay.

I’m not sure if we would be covered under this, but welcome any advice!
thanks

CollinT

Perhaps if MSE want to look into Credit Cards and surcharges, they need to look at the companies out there that state they accept Credit Cards, then do their utmost to get you to pay by Debit Card as it reduces the cost to the business.

However, if the amount is over £100 it also reduces the customer’s protection under S75.

I went to collect my wife’s car and pay for the service last week at a UK wide multi-franchise dealer who, when I was about to put the Credit card into the machine, stopped me and said ‘Oh, haven’t you a debit card, we don’t accept Credit Cards now since the charges started’.

I said that I didn’t have a debit card as I always left it at home. Reluctantly, the chap then let me pay by credit card (so they did accept credit cards despite him telling me told they didn’t).

This coercing to pay by debit card needs stopping in my view as the unsuspecting may fall for it and lose S75 protection.

Collin

eskbanker

squeezywheezy wrote: »

Hi

i wonder can anyone help? I am wondering if I am liable to pay this particular fee?

I am currently in China with my husband and we have had to buy four flights with KLM, where they charged us approximately £22.00 per flight for paying with our visa cards – totally almost £90! We booked the flights from China and we used out visa debit and credit cards to pay. I have read that the EU directive covers you if you and the company's bank accounts are based in the EU. Our bank accounts are based in the UK. I would think KLM’s bank is also in the EU, but no doubt they have some loophole where they have a China branch putting them outside the remit of the new EU regulations. Does anyone know anything about this?

I can confirm that the fee seems to be applied to most cards on their website, however it does not apply to Visa electron, or the other options to pay which are chinese- ie unionpay, Alipay, wechat pay.

I’m not sure if we would be covered under this, but welcome any advice!
thanks

Not sure exactly where your transaction will have been processed but KLM are based in the Netherlands, where they haven't yet implemented the EU PSD2 directive, as per http://www.hoganlovellspayments.com/PSD2.

eskbanker

CollinT wrote: »

Perhaps if MSE want to look into Credit Cards and surcharges, they need to look at the companies out there that state they accept Credit Cards, then do their utmost to get you to pay by Debit Card as it reduces the cost to the business.

However, if the amount is over £100 it also reduces the customer’s protection under S75.

I went to collect my wife’s car and pay for the service last week at a UK wide multi-franchise dealer who, when I was about to put the Credit card into the machine, stopped me and said ‘Oh, haven’t you a debit card, we don’t accept Credit Cards now since the charges started’.

I said that I didn’t have a debit card as I always left it at home. Reluctantly, the chap then let me pay by credit card (so they did accept credit cards despite him telling me told they didn’t).

This coercing to pay by debit card needs stopping in my view as the unsuspecting may fall for it and lose S75 protection.

Collin

While I can understand you being unhappy at being pressured to pay by debit card, it seems a bit of a long shot that this is a widespread issue in need of a campaign, so in your shoes, if you feel strongly about it, complain to Trading Standards....

squeezywheezy

Thank you eskbanker. very helpful