No credit card fees

[Guest]

Originally Posted by fumbo

You do know they have to pay a percentage of the card payments to the CC company? 3% in the case of Amex. Most companies were only trying to recover the additional costs but this has been ruined by the likes of Ryanair trying to fleece people.

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All round its unfair - the card companies take a small percentage of each sale from the seller, then they charge you the card holder interest if you don't pay off your account in full. They are getting it all ways. Amex was not popular with retailers because of their higher cut - although I believe this has been lessened of late. The "cut" was also the reason many corner shops wouldn't accept cards for under £10.

[tspill]

Originally Posted by fumbo

You do know they have to pay a percentage of the card payments to the CC company? 3% in the case of Amex. Most companies were only trying to recover the additional costs but this has been ruined by the likes of Ryanair trying to fleece people.

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I know exactly how it works.

[Guest]

Originally Posted by lovewdw

That's not correct, from the 13th Jan its no longer legal to charge extra for paying by card.

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I think you are wrong. From the 13th it is no longer legal to enter into a new agreement that incurs credit card fees, it is not the case that thus invalidates perfectly legal agreements that pre-date the 13th were a charge for payment card usage was mentioned and accepted by the purchaser

You need to read the small print as well as the headlines

[lovewdw]

Originally Posted by Guest

I think you are wrong. From the 13th it is no longer legal to enter into a new agreement that incurs credit card fees, it is not the case that thus invalidates perfectly legal agreements that pre-date the 13th were a charge for payment card usage was mentioned and accepted by the purchaser

You need to read the small print as well as the headlines

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Your wrong.
The law changes on the 13th January banning surcharges, it states:

Businesses cannot impose any surcharge for using the following methods of payment:

consumer credit cards, debit cards or charge cards
similar payment methods that are not card-based (for example, mobile phone-based payment methods)
electronic payment services (for example, PayPal)

In the case of the OP's question, the agreement they have entered into is to purchase a holiday at a set price. If they make a payment after the 13th January it is unlawful for a surcharge for paying by credit card to be imposed.

[Faythy]

Originally Posted by Guest

I think you are wrong. From the 13th it is no longer legal to enter into a new agreement that incurs credit card fees, it is not the case that thus invalidates perfectly legal agreements that pre-date the 13th were a charge for payment card usage was mentioned and accepted by the purchaser

You need to read the small print as well as the headlines

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But the OP wouldn't have made an agreement to pay by credit card, just to pay for the holiday, which can include a variety of payments.

[lmartin]

TUI credit card fees have been dropped today. I can now pay my balance by Amex .

[Inky]

So they don't charge to pay your balance even if you booked when the charges were in place?

[BarryL]

Originally Posted by John

banks charge merchants on average around 1 % for the 'privilege' of using their credit card, unfortunately greedy merchants don't just pass on the 1%, they add another 1 or 2 percent to profit from this.

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I would love it if merchant service providers only charged 1%
I've just looked up my current fee schedule and here are a few examples

Visa Credit 2.2%
Mastercard Credit 2.6%
Visa Debit 1.3% (debit cards changed to a % from a fixed rate last year)
Mastercard Debit 1%
American Express 1.9% (was almost 5% just a couple of years ago)

Most of these have increased this month so we're shopping around for cheaper (as always)

There are also lots of other rates for corporate cards..mostly in the 3-4% range.

Companies can still charge for accepting a corporate card, it's only personal cards that can't be charged an additional fee.
With the changes to fees on personal cards HMRC no longer accepts personal credit cards for VAT or tax payments (but will still accept a corporate card and charge accordingly)

[Faythy]

Originally Posted by Inky

So they don't charge to pay your balance even if you booked when the charges were in place?

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From the 13th, companies can not do charge extra regardless of when you booked. A lot of companies have dropped their charges already.

[Cabbie]

Slightly off topic but I see "Just Eat" have introduced a 50p surcharge to offset this, details here

-Steve