The consumer group Which? plans to ask the Office of Fair Trading to investigate ‘rip-off’ surcharges
on some credit and debit card payments.
They have announced their intention to launch a formal complaint against the fees, which customers
often have to pay unexpectedly, and which often far exceed the actual amount it costs the retailer to
handle the transaction.
According to Which?, the worst offenders include low-cost airlines – some of which charge
passengers a fee for each leg of their journey, even though they only have to process a single card
transaction.
There is a cost to retailers every time they process a credit or debit card payment, however Which?
believe this amounts to no more than 2 per cent of the value of each credit card transaction – and
less than £0.20 for debit card payments.
However, consumers are often asked to pay surcharges significantly in excess of these amounts.
For example – on a £200 payment for a four-person family’s return trip, Ryanair would charge £20
if paying by debit or credit card. Flybe would charge £38, while Easyjet’s surcharge would be £5.50
for debit card payments, or £10.45 for credit cards. These figures compare with an actual cost to the
retailer of £0.20 (for debit cards) or £4 (for credit cards).
According to Which? chief executive Peter Vicary-Smith: “There’s simply no justification for
excessive card charges – paying by card should cost the consumer the same amount that it costs the
retailer. Companies shouldn’t be using card processing costs as an excuse for boosting their profits.”
The campaign group also believe excessive charges on card transactions are being introduced by
estate agents, local authorities, the DVLA and even cinema chains.
