Card use and stealth fees

snowshine

https://www.moneysavingexpert.com/news/travel/2018/06/train-ticket-site-hits-passengers-with-new-5-booking-fee

Card booking charges are prohibited is what we were made to believe. But companies are charging through stealth. I yesterday did car park booking with Manchester Airport and I am slapped with "customers using online banking may see £1.00 pre-authorisation in their account and is a security check by the payment provider"!!!!
I thought that was what made illegal by recent card use and charging!!!

I am sure there are others with similar experience.

Regards

worried_jim

You are wrong. The £1 is just a test to make sure the card works. If the ticket is £20, pre auth £1, final payment £19 =£20. Petrol stations have done this for years, it's not an additional fee.

Ben8282

An authorisation is not a debit to the card. It will drop off and not be debited to the account. You will not have to pay it.

snowshine

Thank you for clearing it for the car park booking. That is good.

It may be then train booking attempting to charge by different means.

Rgds

molerat

The train booking is a fee if paying by any means. They charge the same for cash but as you cannot stuff fivers into your computer it is a moot point. Some car parks do charge but that is when paying over the phone through an agent.

chattychappy

I disagreed with the change anyway. Our local shop has introduced a minimum spend of £10 for CC transactions. Previously he would charge £1 for transactions under £10. So consumer choice has been reduced.

In the case of my own business (which is B2B), I've stopped taking them altogether. I used to charge 2% more. Again, choice has been reduced.

In this case, it sounds like we are talking about pre-authorisations so they are compliant - there is no extra fee.

In any case, now that CCs don't have to compete with cash, they can safely increase their fees to the retail sector and everyone will pay more.

Edi81

If you are b2b there is nothing to stop you charging for corporate cards.

chattychappy

Edi81 wrote: »

If you are b2b there is nothing to stop you charging for corporate cards.

Correct. But most of my customers use personal cards for business as I always have done.