Airlines agree to end surprise last-minute debit card charges

By CLAIRE SMITH
Published on 06/07/2012 00:00

AIRLINES have agreed to stop springing last-minute fees on customers paying by debit card following an investigation by the Office of Fair Trading.

Consumer organisations including Which? have campaigned against the charges – saying some airlines were charging up to £12 per transaction for payments which cost them between 8p and 12p to process.

The 12 airlines which have agreed to the changes are Aer Lingus, BMI Baby, Eastern Airways, easyJet, Flybe, German Wings, Jet2, Lufthansa, Ryanair, Thomas Cook, Thomson and Wizz Air.

The carriers have agreed to include debit card surcharges in the headline ticket price rather than surprise consumers at the end of the booking process, the Office of Fair Trading (OFT) said.

Which? chief executive Peter Vicary-Smith said: “Over 50,000 people supported our campaign to end rip-off surcharges so it’s good news that debit card surcharges will be displayed in the headline price of flights – as long as the airlines don’t use this as an excuse to push up their prices.

“It’s also important that credit card charges are clearly displayed throughout the booking process and the OFT should make sure that all companies are taking these steps, not just airlines.

“We’re pleased that the government has said they are sticking to their original timetable to ban excessive card surcharges by the end of the year.”

An investigation carried out by Which? earlier in the year found that a family of four on a £2,000 holiday could face an additional charge of almost £50 if they paid for their holiday by debit card.

OFT chief executive Clive Maxwell said: “This is a great outcome for the millions of people who buy flights online. It is important that the cost presented when they search for a flight is realistic and that they are not surprised by extra charges. Otherwise it is harder for them to shop around for the best deal.

“Because of our enforcement action, most airlines have already made their headline prices and other payment charges easier to understand by changing their systems and processes.

“The rest will complete changes in the coming months. We made it clear from the start that we would use all of our enforcement powers, including court action if necessary, but are pleased to have reached agreement with the airlines before court proceedings were required.”

Association of British Travel Agents (ABTA) spokesman Sean Tipton said: “ABTA has always supported transparency of pricing for consumers and we welcome this move to outlaw non-optional debit card charges.

“ABTA and the OFT worked very closely together to ensure the non-optional charges such as fuel surcharges and airport tax were included by airlines in headline prices. We were very successful in doing that but this last issue of debit card charges was an anomaly that needed to be cleared up.”

Michael Ossei, personal finance expert at uSwitch.com, said: “This is a victory for transparency and open and honest business practice. Times are difficult enough for consumers so when they shop around for an affordable flight or holiday it’s important that the price they are quoted is the price they pay.

“This hidden extra can amount to as much as £5 per person per flight with one of Britain’s favourite low-cost airlines. This is completely disproportionate to the fee the airline is charged.”