Saturday 10 December 2016

Retailers Are Responsible For Absurd Credit Card Fees

credit card

Retailers has been warned they are utterly responsible for absurd credit card fees.

Charges of up to 12 per cent are being added to purchases despite a law change in 2013 which was designed to prevent companies profiting from credit card payments.

Consumer groups say the cost of handling an average transaction is 0.6 per cent, but an investigation has revealed charges of up to 3.5 per cent are widespread, with hundreds of companies, local authorities and universities imposing fees that appear well in excess of the basic cost.

Last night, the Government said any organisations making a profit from the fees were breaking the law.

The Office of Fair Trading (OFT) estimates the Brits spend £300 million on credit card surcharges in the airline industry alone.

TicketSource, the booking website, charges customers a 3.5 per cent “card processing fee” and the Empire cinema chain charges 70p per ticket, the equivalent of more than 12 per cent on the cheapest seat.

James Daley, of the campaign group Fairer Finance, told The Times, who carried out an investigation in the credit card scandal, that it happens as “companies know they can get away with it”.

He said: “The rules came in after a Which? Super-complaint and an OFT ruling.

“Until now the vast majority of airlines had ignored them. Councils and other retailers are still ignoring them.

“The fees are usually charged where purchases are less frequent, for example at travel agents or car dealers.

“By the time you have gone through the process of choosing and making a purchase you are not going to be put off by an extra 2 per cent, but the costs add up. Sadly companies know they can get away with it.”

A government spokesman said: “Retailers and local authorities are not allowed to make a profit when they process a card payment. Anyone that does is breaking the law and we expect Trading Standards to investigate.”



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