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Hidden card charges for travel to be banned
The Office of Fair Trading has ordered travel companies in the UK to end the use of hidden surcharges for card payments. The announcement, made on Monday, comes after a ‘super-complaint' was lodged by consumer association Which? earlier this year.
Airline, ferry and rail companies must make charges clear up front rather than adding them at the end of the transaction - a process which often involves four or more pages. An OFT representative said he expects the changes to be in place within the next six months.
Last year, card surcharges in the airline industry alone came to around £300m. Whilst some carriers charge for both credit and debit card payments others charge credit card users only. Many people still prefer to pay with a credit card given the extra protection given if a company collapses.
Whilst the ruling is clearly good news for travellers, there is still no obligation for companies to reflect the actual cost for processing the payments in the surcharge. Consumer minister, Edward Davey, said the government was looking to introduce European rules to ensure this was the case although he admitted it could take up to two years before these are reflected in UK law.
