Credit Card Surcharges about time

jgsi

Capped wef 6/4/2013 about HIGH time as well
http://www.bbc.co.uk/news/business-22042309

Holiday company wanted £5 for a £60 credit card balance last week ... thieves
Now it is 25p my heart bleeds for 'em as long as they dont use it as an excuse to go bust of course.

danlikesbikes

No they will just chuck it into the initial cost so we all end up paying the same.

Did make me chuckle reading the BBC report that airlines, holiday companies & ferry/euro tunnel we some of the top over chargers. Not like you have any other alternative really so a cornered market.

MattC59

I never really understand people moaning about things that they've agreed to.

sungod

i find high taxes annoying, i still have to agree to pay them, that doesn't mean i can't moan about it if i want to

same with surcharges

danlikesbikes

MattC59 wrote:

I never really understand people moaning about things that they've agreed to.

For me its more that I never agreed to pay it e.g. flight booking or eurostar, I was quoted one price added the item to my basket and went to pay only to find the cost increased when it came to taking my money.

As a captive market, with all the carriers doing it its not like I have a choice apart from not travel (which quite a lot is work related). When you look at the report it tends to be the same business's industries first it was 'hidden' taxes, now if unrealistic card charges, next week I'm sure it will be something to do with other 'hidden' costs.

Plus the charges are hardly commensurate with the cost of a business having to use a credit/debit card system, where I work we certainly do not charge anything if people are paying us no matter what they choose to use.

Have no problem paying a business an amount of money for a service, I do have an issue with them hiding costs and making themselves look cheaper than they are. But that is of course my own opinion & others may be happy with getting a quote for something only to find they have to pay more money, but for me it smacks of poor business practice.

smoggysteve

Tax is something you have to pay, so justifiably you can complain. Credit cards or holidays on the other hand, you CHOOSE to go on holiday or take out credit. If you cannot afford it, don't do it.

Not sure where people have been burying their heads over the last 5 years but this is the reason we are in so much financial trouble. If you can't afford it doesn't mean you can get a loan and suddenly you can. If its not a mortgage or maybe a car why the hell should anyone feel the need the get credit out for a frivolous expense and then complain that they interest is sky high?

verylonglegs

Can't help but think some posters are missing the point, it's not the cost of something but the way it's dressed up, if a flight is £60 then advertise it as £60 rather than £55 and some horsesh1t transaction charge tacked on at the end.

MountainMonster

One of my biggest pet peeves in beginning of using Ryan air is that we would go through 4 steps of getting our details put in, and then find out how much exactly everything would be. They didn't put the online check-in fees and extra charges on to the bill until the very last step, which meant you never know exactly what you are paying until you put your card details in to pay. Rather cheap way of doing things, especially as I bet many people missed out on their holidays they wanted because extra charges meant they could not afford it, even though you can view the price of the flight from the first instance.

jgsi

SmoggySteve wrote:

Tax is something you have to pay, so justifiably you can complain. Credit cards or holidays on the other hand, you CHOOSE to go on holiday or take out credit. If you cannot afford it, don't do it.

Not sure where people have been burying their heads over the last 5 years but this is the reason we are in so much financial trouble. If you can't afford it doesn't mean you can get a loan and suddenly you can. If its not a mortgage or maybe a car why the hell should anyone feel the need the get credit out for a frivolous expense and then complain that they interest is sky high?

Nothing to do with taking out credit.. paying by credit card is a 'means of payment' that was subject to abuse from retailers if they so chose to do so.
Ok consumer groups got it so wrong in lobbying for a change... and you are so (self) right(eous).. well we are safe hands then arent we?? :roll:

smoggysteve

If you get a credit card, its a conscious thing. No one made you use it. If you go and spend money on it without doing the maths and seeing if you can afford to pay back the thing every month or read the small print about the APR, how can you blame anyone but yourself. I am not saying all people who use them shouldn't, if you manage it then crack on. But it people who expect something for free without any strings attached. Im not being self-righteous, im just a realist and I say it as I see it. Don't like it? Tough sh!t

jgsi

We are not talking about APR... read up the thread afore mouthing off at a tangent please

smoggysteve

I was talking about credit as a whole. You get all the information you need before you press the accept on a transaction. They can't just say, Oh sorry you thought you were paying £50 but we are taking £70 without pre warning you. Yes I know its bad that companies wait til the very last moment to tell you about the surcharges but you still get to say no before you pay. You know this sort of thing exists so why be so surprised when it happens for the umpteenth time? Fool me once, shame on you, fool me twice...

verylonglegs

You really aren't getting what this thread is about Steve, the charges apply to both debit and credit cards in a lot of cases after all.

Mikey23

That is very good news which I had not heard before. Thanks for sharing

VTech

I think the issue is worsened by the fact that it isn't a tax whatsoever. It's an "extra"

The bank can charge the retailer 25p - 75p yet the customer is sometimes charged £5 which then goes to the retailer as more profit, therefore masking the real price of the item which in fact is fraud in the eyes of the law.
I'm amazed at how long these tactics have been allowed to go on for and with no fines to retailers (maybe because it was so widespread)

capt_slog

I wouldn't mind the credit card charge if it was reasonable. But paying per person per flight when they are only taking ONE payment as a total isn't reasonable and it can't be justified. (example return flights for two, they want 4x the 'credit card charge').

It's even more unreasonable when this is the only way to pay, and I don't count Ryanair's prepay card as an option.

Pross

SmoggySteve wrote:

If you get a credit card, its a conscious thing. No one made you use it. If you go and spend money on it without doing the maths and seeing if you can afford to pay back the thing every month or read the small print about the APR, how can you blame anyone but yourself. I am not saying all people who use them shouldn't, if you manage it then crack on. But it people who expect something for free without any strings attached. Im not being self-righteous, im just a realist and I say it as I see it. Don't like it? Tough sh!t

You do realise that just because you pay by credit card doesn't necessarily mean you are getting into debt don't you? Even if I have all the money ready saved up for a holiday I would pay by credit card as it gives me an extra line of insurance. I would then pay the amount off straight away. No debt but you still get charged an extortionate 'surcharge' which as someone else has said is often charged per ticket rather than per transaction.

If you fly with someone like Easyjet it is almost impossible to avoid paying the surcharge - I have no idea how you can book with them without paying by card - likewise if you buy tickets for a concert. If it is next to impossible to buy without using a credit or debit card then charging a surcharge for their use is basically charging more for what you are purchasing than the advertised price.

johnmiosh

I always pay off my CC balance in total every month but use a CC for the convenience. £5 charges for small amounts are irritating, but can either be accepted or you could use an alternate payment, I will generally pay by debit card or cash rather than incur a penalty.

Pross is correct about the insurance aspects, when I buy a holiday, it could be several thousand pounds. I have in the past been asked to pay a 2% surcharge for using a credit card. This is probably profiteering by the company, expecting clients not to have money available and be forced to accept the surcharge.

Alternatively, it is possible that the retailing company may wish to discourage credit card use because of the extra insurance guarantee; if the package company falls over, you would easily be able to claim directly from the retailer via the Credit Card Company. With an alternative payment, you would have to apply through ABTA and/or your holiday insurance.

VTech

johnmiosh wrote:

I always pay off my CC balance in total every month but use a CC for the convenience. £5 charges for small amounts are irritating, but can either be accepted or you could use an alternate payment, I will generally pay by debit card or cash rather than incur a penalty.



Alternatively, it is possible that the retailing company may wish to discourage credit card use because of the extra insurance guarantee; if the package company falls over, you would easily be able to claim directly from the retailer via the Credit Card Company. With an alternative payment, you would have to apply through ABTA and/or your holiday insurance.

Ive never thought of it like this before but you may well have a serious point there !

dynamicbrick

I doubt that very much - I booked a flight with Sleazyjet, or Flybe, (can't remember now). Something like this;
\
Flight: £90
Taxes: £25
No luggage: £5
Online Booking Fee: £10
Debit/Credit Card Fee: £10

The luggage thing, fair enough - as to take luggage was £15 or something.

Online booking fee - stuck in the throat a bit. I get charged for not using a travel agent (who would be on commission anyway) and buying direct from the operator

Debit/Credit card fee - £10 to pay for the damn ticket! I only had the option of debit or credit card payment. I chose debit, and still paid the same fee.

VTech

I dont think he was referring to the likes of easyjet and ryan air who do it to take every last penny from the customer.

Holidays are usually with an agent and cards do offer great cover.

verylonglegs

Received my car insurance renewal notice from Admiral and they want to charge me £5.95 for paying by credit card. First time I recall this on a car insurance premium..anyone else seen it with other insurers?

ballysmate

johnmiosh wrote:

I always pay off my CC balance in total every month but use a CC for the convenience. £5 charges for small amounts are irritating, but can either be accepted or you could use an alternate payment, I will generally pay by debit card or cash rather than incur a penalty.

Pross is correct about the insurance aspects, when I buy a holiday, it could be several thousand pounds. I have in the past been asked to pay a 2% surcharge for using a credit card. This is probably profiteering by the company, expecting clients not to have money available and be forced to accept the surcharge.

Alternatively, it is possible that the retailing company may wish to discourage credit card use because of the extra insurance guarantee; if the package company falls over, you would easily be able to claim directly from the retailer via the Credit Card Company. With an alternative payment, you would have to apply through ABTA and/or your holiday insurance.

The credit card companies DO charge retailers a percentage on transactions but debit cards only attract something like 25p charge.
As I understand, any purchase above £100 paid by credit card, attracts automatic insurance benefit from the credit card company, insofar as the CC company is deemed to have the some of the responsibility of the vendor.
By the way, in the example of the holiday, if you pay the deposit by CC and it is above £100 you are covered, no matter the full cost.

ballysmate

verylonglegs wrote:

Received my car insurance renewal notice from Admiral and they want to charge me £5.95 for paying by credit card. First time I recall this on a car insurance premium..anyone else seen it with other insurers?

Had the same recently with Admiral. But they are up front about it. If they are charging 6 quid ago, in the case of my daughters insurance, the premium was around a grand the CC company may be charging 20 quid (2%).
Doesn't mean they have already factored the commission into all their prices and ripping me off for £6 though.