Handling fees for paying by credit card - isn't it against cc associations policy?

dragonfruit

Is collecting a handling fee for paying by credit card not against credit
card issuers (cc associations) policy?
A number of on-line operating companies charge a handling fee for using credit cards and even debit cards.
This includes amongst other EasyJet.com, EasyCar.com, RyanAir.com, Travelstay.com .
Some of them do not even enable an option to pay any other way (a way which would not include a handling fee for paying by payment card).
EasyCar charge 5.24 GBP for paying by credit card. EasyJet 2.5% of transation, but not less than 4.95 GBP.
RyanAir charges 4 GBP per passaneger (so if one would pay one payment for 5 passangers one would end up with paying additionaly 20 GBP just for paying with credit card).
RyanAir claim on their webpage that they do it to "defray the substantial administration costs we incur when processing credit and debit cards".
However, I do not see how they can incur higher costs if there are two passengers or more, and not one, in case when only one payment is made for all those passengers.
Therefore it seems for me that this is just another way of making additional profit for the company, and not to "defray the substantial administration costs we incur when processing credit and debit cards".

StevieJ

Surely they pay a % fee for the transaction to the credit card company, anyone know what % this is?

nomoneytoday

It used to be the law that all payment types should charge the same, but this was changed a few years back.

Basically you can either use a different payment method, or do what I do and refuse to pay a surcharge and shop elsewhere

dragonfruit

nomoneytoday wrote: »

It used to be the law that all payment types should charge the same, but this was changed a few years back.

But that has changed only in the UK:
http://www.opsi.gov.uk/si/si1990/Uksi_19902159_en_1.htm

Has it changed also in Ireland, as RyanAir is Ireland based?

Besides, charging per passanger (no matter whether paid for each passenger separately or for all at once with just one payment) does not seem to be fair.
Isn't it the same case as with bank's illegal charges, i.e. that it has to be proportionate to the cost incurred otherwise it is illegal?

Credit Card associations have not changed their rules and regulations regarding that issue and they still do not permit surcharging. Apparently though local law takes precedence over their regulations.

System

i do think it's a case of swings and roundabouts with flight costs.

If they don't charge for one thing, they'll charge for another ie. if they didn't charge credit card fees they'd just put the fares up - and Ryanair in particular seem to be experts in dreaming up new 'services' to charge for.

I often find it cheaper when I fly to Ireland to use bmi or AerLingus who don't have so many stealth charges as more budget airlines.

I do take your point about the charges being unfair, but as another poster said, it is a matter or consumer choice - so vote with your feet and give someone else your custom!

UNDERGROUND

dragonfruit

UNDERGROUND wrote: »

i do think it's a case of swings and roundabouts with flight costs.

If they don't charge for one thing, they'll charge for another ie. if they didn't charge credit card fees they'd just put the fares up - and Ryanair in particular seem to be experts in dreaming up new 'services' to charge for.

I often find it cheaper when I fly to Ireland to use bmi or AerLingus who don't have so many stealth charges as more budget airlines.

I do take your point about the charges being unfair, but as another poster said, it is a matter or consumer choice - so vote with your feet and give someone else your custom!

UNDERGROUND

It's not only unfair but illegal, if they have to charge higher prices for tickes then it's ok.