2.5%

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GDJTAM
GDJTAM Posts: 79 Forumite
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in Credit cards
I am paying for my holiday soon by mastercard and the agent will charge 2.5% for this transaction. this transaction fee will equate to over £90 and although someone has to process the payment how can the admin cost this much in this digital automated world we live in.

Do we just accept this exuberant charge or can we dispute it with anyone?
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  • newuser86
    newuser86 Posts: 312 Forumite
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    This is because Mastercard charge the merchant for transactions, unfortunately you will just have to pay it
  • meer53
    meer53 Posts: 10,217 Forumite
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    Accept it or pay by debit card. You would have been advised of the charge when booking so it can't be a surprise ?
  • GDJTAM
    GDJTAM Posts: 79 Forumite
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    meer53

    I never said it was a surprise, the question was a generic how can mastercard justify £90 fee for a digital transfer?

    I am fully aware of charges been applied to credit cards as I've just paid it each time without a thought. This time I'm asking what do these businesses do to justify such a high admin fee?
  • lisyloo
    lisyloo Posts: 29,615 Forumite
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    Businesses don't have to justify themselves to you, but if I had to I'd mention rewards, section 75 protection, interest free days, bad debt that is never repaid etc.
    You do realise that your cc company are liable for the whole lot??

    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.

    It's up to you to be smart and use the advantages but not cop for the charges. You can't blame them for wanting to make a profit, that's that businesses do.
  • GDJTAM
    GDJTAM Posts: 79 Forumite
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    not sure why certain forum members can't answer a question civilly without been obnoxious about it!

    I only asked why...that's how we learn!
  • gt94sss2
    gt94sss2 Posts: 5,631 Forumite
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    Yes, merchants can surcharge customers but the rules now say that they must charge no more than the cost of actually processing the payment.

    Have a look at https://www.gov.uk/government/publications/payment-surcharges and http://www.cardswitcher.co.uk/2017/02/credit-card-surcharge/

    Whether 2.5% is appropriate I can't say but as has been suggested you could perhaps pay part of it by credit card and the rest by debit card..
  • Biggles
    Biggles Posts: 8,209 Forumite
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    gt94sss2 wrote: »
    Whether 2.5% is appropriate I can't say
    Maybe it is; but it certainly isn't exuberant.
  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    lisyloo wrote: »
    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.
    OP says they're paying an agent so there's no section 75 protection anyway (other than failure of the agent), i.e. no protection for problems with airlines, hotels, etc, when paying a middleman rather than the actual service provider.
  • System
    System Posts: 178,094 Community Admin
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    lisyloo wrote: »
    Businesses don't have to justify themselves to you, but if I had to I'd mention rewards, section 75 protection, interest free days, bad debt that is never repaid etc.
    You do realise that your cc company are liable for the whole lot??

    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.

    It's up to you to be smart and use the advantages but not cop for the charges. You can't blame them for wanting to make a profit, that's that businesses do.

    They do actually have to justify their credit card charges as they aren't allow to do more than cover their costs. Therefore, your statement about making a profit is wrong.
  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    Heng_Leng wrote: »
    lisyloo wrote: »
    Businesses don't have to justify themselves to you, but if I had to I'd mention rewards, section 75 protection, interest free days, bad debt that is never repaid etc.
    You do realise that your cc company are liable for the whole lot??

    If you're smart/mse then you'll pay £1 by credit card for the section 75 protection and pay 3p in charges, and pay the rest by debit card.

    It's up to you to be smart and use the advantages but not cop for the charges. You can't blame them for wanting to make a profit, that's that businesses do.
    They do actually have to justify their credit card charges as they aren't allow to do more than cover their costs. Therefore, your statement about making a profit is wrong.
    I think you may be at cross purposes here about who 'they' are - retailers aren't allowed to make profits from levying card surcharges but card companies are allowed to set transaction fees in such a way as to generate profit (and they're the ones who have the liability for the bad debts, s75 protection, etc).
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