Tuesday 28 June 2011

A victory for Which? and the low-costers
Travel companies, including the low-cost airlines, have today (June 28) been ordered to end the use of hidden surcharges for passengers paying by card.
The UK’s Office of Fair Trading (OFT) has ordered them to make all debit or credit card charges clear immediately.
It also wants the law changed to abolish altogether charges for using debit cards.
The OFT's announcement comes in response to a super-complaint by the consumers' association Which?, which earlier this year called for customers to be told upfront about charges.
It had also argued that charges to customers should be the same as the cost to retailers, and that retailers should absorb the cost of debit card payments.
Which? had pinpointed low-cost airlines as the worst offenders.
Airline Easyjet charges a surcharge of £8 for payments by debit card and £8 plus 2.5% of the total transaction for credit card users, the OFT's report said.
Ryanair charges £6 per journey for both credit and debit card users.
Some travel companies do not levy a debit card surcharge already and others have agreed with the regulator that they would include this in their headline price online.

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