Among the crazier anti-consumer practices that have crept into travel in recent years has been the credit card charge. Charges vary, and are listed under different headings by different operators. They are rarely a credit card charge, but are described instead as a booking fee, usually in the region of €3 or 2%. This is more than the bank charges the tour operator for processing the card.
Debit cards are not charged, on the basis that the out operator has access to the money almost immediately after the booking is made.
The charges are not just annoying, they make no sense whatsoever. Tour agencies used to prefer payment by cheque, but cheques are cumbersome, slow, and their days are apparently numbered.
Cash is even more cumbersome. Banks charge travel agents a lot for counting their money. The tour operators talk about moving their business online instead of trying to get people to go into shops. There have been two major travel agency robberies in recent weeks. Meanwhile they are offering a clear disincentive to consumers to book online.
The consumer agencies are also taking a lot of interest in credit card charges. The old practice of advertising holiday prices ‘from €299’ has been changing as a result of pressure from the Office for Consumer Affairs, which has been taking travel agents to task for their window posters.
But on credit card charges the legal situation is not so clear. Charging a service charge on credit cards, a practice pioneered by ticket booking agencies, is in breach of a tour operator’s contract with the bank but not in breach of the law. Online booking engines for airlines are worse. Ryanair, in particular, has been charging consumers more than they are charged by the banks.
But there is nothing we or the Consumers Office can do about it. Watch this bottom line.
