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Debit card surcharges must go, says Which? | Debit card surcharges must go, says Which? |
(40 minutes later) | |
A consumer group has stepped up pressure on the government to ban surcharges on online debit card travel purchases. | A consumer group has stepped up pressure on the government to ban surcharges on online debit card travel purchases. |
Consumers' association Which? said a small amendment to current legislation was all that was needed to outlaw the practice. | |
In June, the Office of Fair Trading (OFT) proposed a change in the law to abolish such charges. | In June, the Office of Fair Trading (OFT) proposed a change in the law to abolish such charges. |
The government said it was working on a response to the OFT's recommendation. | |
As consultation ends on the OFT's recommendations, Which? said that an amendment to the Payment Services Regulations by the Treasury could outlaw these debit card surcharges. | |
"With most airlines yet to drop these card surcharges and some introducing new fees, it is time for the government to put a stop to this," said Richard Lloyd from Which? | |
"A minor change to the law is all it would take to ban the charges on debit cards that you only find out about at the end of a lengthy online booking process," he added. | |
Clear charges | Clear charges |
In June travel companies were ordered by the OFT to make all their card surcharges clearer to passengers. | |
Typically they find they have to click through four to six pages of an online booking system before the card surcharge is finally added to the price. | |
The regulator said that travellers spent £300m on card surcharges in the airline industry alone in 2010. | The regulator said that travellers spent £300m on card surcharges in the airline industry alone in 2010. |
Despite a recommendation to abolish surcharges altogether on debit cards, two airlines - Lufthansa and Swiss - are planning to charge a £4.50 fee on all card payment bookings from 2 November. | |
Some other airlines already charge more than this for debit card transactions. | |
The OFT found that the airline Easyjet charged a surcharge of £8 for payments by debit card, and £8 plus 2.5% of the total transaction for credit card users. | |
Ryanair charged a fee of £6 per journey for both credit and debit card users. | |
Enforcement | |
A Treasury spokesman said: "The government is committed to working with the OFT to stop retailers, including airlines, imposing hidden surcharges on customers who pay by card. | A Treasury spokesman said: "The government is committed to working with the OFT to stop retailers, including airlines, imposing hidden surcharges on customers who pay by card. |
"We are considering the OFT's recommendations and will respond in due course." | "We are considering the OFT's recommendations and will respond in due course." |
The OFT has promised an update by the end of the week on whether it would take any action against travel companies hiding their online booking card surcharges. | The OFT has promised an update by the end of the week on whether it would take any action against travel companies hiding their online booking card surcharges. |
"We made it very clear that passenger travel companies have been put on notice to change misleading debit and credit card surcharging practices or face enforcement action under consumer protection laws," a spokeswoman said. | "We made it very clear that passenger travel companies have been put on notice to change misleading debit and credit card surcharging practices or face enforcement action under consumer protection laws," a spokeswoman said. |