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| Version 1 | Version 2 |
|---|---|
| Visa Electron to be phased out | Visa Electron to be phased out |
| (4 days later) | |
| A card payment service commonly used by customers to avoid high transaction charges when booking flights is being phased out by two major providers. | A card payment service commonly used by customers to avoid high transaction charges when booking flights is being phased out by two major providers. |
| Customers who pay by Visa Electron are not charged transaction fees by airlines such as Ryanair, Aer Lingus, BMIbaby, Easyjet and Flybe. | Customers who pay by Visa Electron are not charged transaction fees by airlines such as Ryanair, Aer Lingus, BMIbaby, Easyjet and Flybe. |
| Abbey and Travelex have told BBC Radio 4's Money Box their cards will not feature Visa Electron by next year. | Abbey and Travelex have told BBC Radio 4's Money Box their cards will not feature Visa Electron by next year. |
| But another banking group, HBOS said it would continue to offer the card. | But another banking group, HBOS said it would continue to offer the card. |
| High charges | High charges |
| Several airlines now charge a flat fee transaction charge per person, per flight, when customers pay by debit or credit card. | Several airlines now charge a flat fee transaction charge per person, per flight, when customers pay by debit or credit card. |
| I paid £5 per person, per leg of the journey. I think they're coining it in Vic, Ryanair customer | I paid £5 per person, per leg of the journey. I think they're coining it in Vic, Ryanair customer |
| It can add up to a substantial part of the overall cost. | It can add up to a substantial part of the overall cost. |
| Ryanair charges £5 per person, per flight, even if all the passengers are paid for on the one card, in a single transaction. | Ryanair charges £5 per person, per flight, even if all the passengers are paid for on the one card, in a single transaction. |
| Vic, from Hertfordshire, contacted Radio 4's Money Box to complain after Ryanair charged him £20 to pay by credit card. | Vic, from Hertfordshire, contacted Radio 4's Money Box to complain after Ryanair charged him £20 to pay by credit card. |
| He was buying return flights to Italy for himself and his wife: | He was buying return flights to Italy for himself and his wife: |
| "I paid £5 per person, per leg of the journey. I think they're coining it in." | "I paid £5 per person, per leg of the journey. I think they're coining it in." |
| Cheap flights | Cheap flights |
| The UK Cards Association estimates for credit cards, banks charge airlines between 1.5% to 2.5% of a payment in transaction fees. | |
| It believes it is significantly less than £1 to process a debit card transaction. | |
| What's really important to passengers is that they get the lowest fare Stephen McNamara, Ryanair | What's really important to passengers is that they get the lowest fare Stephen McNamara, Ryanair |
| That means a family of four on a return journey paying on one debit card should pay about 30p, if they were just covering the airline's costs, but would be charged £40 by Ryanair. | That means a family of four on a return journey paying on one debit card should pay about 30p, if they were just covering the airline's costs, but would be charged £40 by Ryanair. |
| Stephen McNamara, chief spokesman for Ryanair, said the priority for customers was to get the cheapest flight. | Stephen McNamara, chief spokesman for Ryanair, said the priority for customers was to get the cheapest flight. |
| "Irrespective of whether we make a profit or not, what's really important to passengers is that they get the lowest fare." | "Irrespective of whether we make a profit or not, what's really important to passengers is that they get the lowest fare." |
| Ryanair said if Vic had paid with a Visa Electron card, he would not have paid any transaction fee. | Ryanair said if Vic had paid with a Visa Electron card, he would not have paid any transaction fee. |
| It said about 30% of its customers pay this way, but the UK Cards Association estimates only about 8% of UK consumers have the Visa Electron card. | It said about 30% of its customers pay this way, but the UK Cards Association estimates only about 8% of UK consumers have the Visa Electron card. |
| Phased out | Phased out |
| It is likely to become more difficult to obtain in the future. | It is likely to become more difficult to obtain in the future. |
| Visa Europe said it would be phased out as its unique features were now available on normal bank debit cards. | Visa Europe said it would be phased out as its unique features were now available on normal bank debit cards. |
| Abbey - which along with HBOS is one of the few banks which still offer it - said it will not be issued to new customers from 14 December. | Abbey - which along with HBOS is one of the few banks which still offer it - said it will not be issued to new customers from 14 December. |
| And Travelex will not be offering Visa Electron on its pre-payment card from next year. | And Travelex will not be offering Visa Electron on its pre-payment card from next year. |
| Advertising rules | Advertising rules |
| Industry insiders believe having one free payment method allows airlines to advertise cheap rates without having to include charges most customers pay. | Industry insiders believe having one free payment method allows airlines to advertise cheap rates without having to include charges most customers pay. |
| Rochelle Turner head of research at Which? Holiday said offering the Visa Electron payment option was important for airlines and their marketing: | Rochelle Turner head of research at Which? Holiday said offering the Visa Electron payment option was important for airlines and their marketing: |
| "My understanding is that if they didn't have this one free vehicle offer, then they would have to reduce their rates." | "My understanding is that if they didn't have this one free vehicle offer, then they would have to reduce their rates." |
| Advertising Standards Authority rules say where an advert shows a price it should include all non-optional charges. | Advertising Standards Authority rules say where an advert shows a price it should include all non-optional charges. |
| The Office of Fair Trading says, if the charges are unavoidable and foreseeable, they should be included in the headline price. | The Office of Fair Trading says, if the charges are unavoidable and foreseeable, they should be included in the headline price. |
| BBC Radio 4's Money Box is broadcast on Saturdays at 1200 GMT, and repeated on Sundays at 2100 GMT. Download the podcast. | BBC Radio 4's Money Box is broadcast on Saturdays at 1200 GMT, and repeated on Sundays at 2100 GMT. Download the podcast. |