Credit Card Transaction fees

gordoni

I am not sure this is credit card/bank or a retailer issue but I'll start here.

Increasingly I see retailers charging separately for the use of VISA/MasterCard credit cards that seem excessive and not linked to the cost of the transaction but to the value of goods or services being bought! I would imagine that the transaction costs are fairly flat regardless of value of the transaction so why do I pay more for doing more business?? The net of this is that I am using my Visa card less and less and at the current rate will not need it all within a year!

The latest example is British Airways where they wanted £7 from me if I used Visa for flights with a value of £200. As many companies are now embracing the internet based business model and we are encouraged to use Visa/MasterCard to protect ourselves but we arenow being (punitively) charged for this approach.

Some retailers do not charge separately for use of a credit card facilities and seem to make a profit while others add significant additional costs.

What can we do to address those businesses who abuse consumers by charging them fees for the use of credit cards that are disproportionate to the actual costs incurred?

YorkshireBoy

gordoni wrote: »

What can we do to address those businesses who abuse consumers by charging them fees for the use of credit cards that are disproportionate to the actual costs incurred?

Shop elsewhere?

Phantom_Flan_Flinger

gordoni wrote: »

The latest example is British Airways where they wanted £7 from me if I used Visa for flights with a value of £200.

I think the transaction fee is around 3%, so £7 isn't far off the mark.

YorkshireBoy

Phantom_Flan_Flinger wrote: »

I think the transaction fee is around 3%

...and even if they were only charged 2%, 50% isn't an unreasonable gross margin is it?

At the end of the day, it doesn't matter how it's made up, the the most important number on any invoice is at the bottom.

Paul_Herring

gordoni wrote: »

Some retailers do not charge separately for use of a credit card facilities and seem to make a profit while others add significant additional costs.

I think you'll find that this is because they build the %age into the price.

If you pay by card, they have the cost covered. If you pay by cash, they keep the excess as profit.

Geenie

I think £7 for a £200 flight isn't bad. When we booked flights to Rome the other day with Easy Jet, they would have charged £32 for a £160 deal if we had used Visa!!!!:eek: