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Airlines no longer allowed to profit from card charges
September 3rd, 2012 by elisa

Credit card picture by Flickr User Images_of_Money

Credit card picture by Flickr User Images_of_Money

 

Following a final consultation this month, airlines will no longer be able to make a profit from processing card payments. This is a major breakthrough with regards to the ongoing concerns from consumers over excessive debit and credit card charges made by airlines.

Earlier in the year, airlines were forced to start advertising their payment charges as part of their headline flight prices following a ‘super-complaint’ by Which? that was enforced by the Office of Fair Trading (OFT).

“Traders will no longer be able to make a profit by charging the consumer for credit or debit card use above the amount it costs them to process that payment,” said consumer affairs minister Norman Lamb.

“These proposals will stop companies from adding on these excessive charges, and allow consumers to see a clearer and more transparent breakdown of what they are paying for.”

The exact date for the implementation of the new rules is yet to be decided, but is expected to be some time in early January.

Richard Lloyd, of Which?, said: “The government must ensure that all businesses only charge the genuine cost they incur for processing the payment and that they are upfront, and make this clear to consumers.

“We also want to see a robust enforcement regime in place, to make sure firms are held to account if they flout the ban.”

A report by OFT carried out last year found that airline passengers had spent a total of £300m on card surcharges in 2010.

 


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