ATIO threatens to raise card payment fees

Saturday, 06 Sep, 2012 0

 

AITO members are threatening to raise fees for customers paying by credit card just as the Government is preparing to clamp down on businesses profiteering from excessive charges.

The Association says it may be forced to charge customers more for paying by plastic because banks have raised their merchant fees for certain premium cards.

AITO chairman Derek Moore said banks charged up to 1% above the usual 1.5% to 2% transaction fee for certain cards, such as those that offer cash back, free travel insurance and other benefits.

As members have no way of knowing which cards incur the higher fees, he said they  might have to raise credit card charges for all customers.

"We hate having to consider increasing costs to all credit card users but without any way of identifying the cards that will attract such punitive charges from the banks’ merchant acquirers we simply have no choice."

Moore said the higher fees, which he claimed banks had introduced without notification, were costing members an extra £600,000 a year.

He said the first step for AITO would be a letter to the Office of Fair Trading requesting urgent legislation to prevent banks being able to charge "arbitrary amounts" without prior notice.  "We seek, quite simply, transparency as far as all credit card transactions are concerned," he added.

Consumer affairs minister Norman Lamb announced earlier this week that companies will no longer be able to make a profit from card payments and charges for credit and debit card payments will have to be clearly displayed under new rules, which are expected to be introduced early next year.

 

By Linsey McNeill



 

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Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk



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