Credit card Charges

[Tina.w12]

I did a dummy booking to find out what Thomson are doing regarding the crack down on card charges. This is from their website.

 

There are no additional charges when paying by Maestro, MasterCard Debit or Visa/ Delta debit cards. A fee of 2.5% applies to credit card payments, which is capped at £95.00 per transaction when using American Express, MasterCard Credit or Visa Credit cards

 

So I take it that this means it is only capped per transaction ont per booking so therefore you can be charged on the deposit, paying balance, paying account on ship and any other extras purchased seperately:confused::confused:

[kruzseeka]

I did a dummy booking to find out what Thomson are doing regarding the crack down on card charges. This is from their website.

 

There are no additional charges when paying by Maestro, MasterCard Debit or Visa/ Delta debit cards. A fee of 2.5% applies to credit card payments, which is capped at £95.00 per transaction when using American Express, MasterCard Credit or Visa Credit cards

 

So I take it that this means it is only capped per transaction ont per booking so therefore you can be charged on the deposit, paying balance, paying account on ship and any other extras purchased seperately:confused::confused:

 

 

I think you are probably right Tina. As you point out, the charges are going to be applied separately and if you then add these together you are very likely to be outside the capped limit - so another little earner for them! :rolleyes:

 

I wonder whether this new legislation will make a difference. I think it only became operative this week so perhaps there could be changes in the pipe-line.

 

http://www.travelweekly.co.uk/Articles/2013/04/08/43665/new+rules+come+in+to+combat+excessive+card+charges.html

 

But if you think about it - to charge £2.50 for a £100 transaction compared with £25.00 on a £1000 transaction surely only involves the same amount of work/admin - they only have to process it irrespective of the amount involved. Thomson of course aren't alone in this. It makes me fume to buy theatre tickets and have to pay a 'handling charge'! The sooner the excesses are eliminated and there is true transparency the better.

 

So........... I'll carry on paying with the old Debit Card for now and hope a more realistic charging policy will soon apply! ;)

[geomagot]

the guidelines have been changed recently on this, retailers are no longer allowed to charge fees that exceed the true cost of processing a credit card payment

 

what 'the true cost of processing a card payment' is? who knows?? its a bit ambiguous?? I guess (the usual suspects) will find a way around it

 

and there will be no real enforcement.....companies are simply expected to play fair??

[sodafountain]

But if you think about it - to charge £2.50 for a £100 transaction compared with £25.00 on a £1000 transaction surely only involves the same amount of work/admin - they only have to process it irrespective of the amount involved.

 

The fee covers what their bank will charge them for processing it though, which can be anything from 1.5% to 3%, depending on your bank, how much business you put through, internet fee's for online payements, that is what the fee mostly covers (although i bet they get a better rate than 2.5%). If they are charged 2% by their bank, irrespective of the amount, 2% is 2%, that is what they are charged.

 

I did a dummy booking to find out what Thomson are doing regarding the crack down on card charges. This is from their website.

 

 

 

There are no additional charges when paying by Maestro, MasterCard Debit or Visa/ Delta debit cards. A fee of 2.5% applies to credit card payments, which is capped at £95.00 per transaction when using American Express, MasterCard Credit or Visa Credit cards

 

 

 

So I take it that this means it is only capped per transaction ont per booking so therefore you can be charged on the deposit, paying balance, paying account on ship and any other extras purchased seperately

 

I believe at 2.5%, a cap of £95 would require a spend of £3800, i doubt many spend that combined accross everything anyway, so shouldn't effect most travellers anyway if they pay bits here and there, if they don't spend over £3800 in total, they won't pay £95 in fees.

[Tina.w12]

I'm one of the lucky few who will gain on paying for my Xmas cruise which is B2B and silly money:)

[sodafountain]

Just to add, i believe the reports suggests (so not written in stone) that anyone paying by credit card should expect to pay 21p in the pound (thus 2.1%), so Thomson are not far off that figure.

 

A £2000 holiday at 2.5% is £50.00, whereas at 2.1% it is £42.00, a saving of £8.

 

Now, i know that £8 is better in my pocket than theirs, but do people really quible about £8 when spending £2000?

 

I might complain about spending £50 on fees, or £42 on fees, but either way, i wouldn't moan about the £8 difference, probably why they can get away with it, it's only an extra 0.4%.

[Mower Lady]

We have a tiny business and our bank charges us 1.3% credit card fees. I can't believe Thomson with all their spending power can't get a better rate than that! And we don't charge our customers for paying by cc!

[sodafountain]

We have a tiny business and our bank charges us 1.3% credit card fees. I can't believe Thomson with all their spending power can't get a better rate than that! And we don't charge our customers for paying by cc!

 

You say you don't, but in effect, you are charging everyone, as you would have incorperated any bank fees into your overheads (along with anything else like rent/rates/water/wages/etc) when working out any markup on goods/services you supply, to make a profit.

 

In that case, anyone paying by Debit Card or cash is paying more, and subsidising those wanting to pay by Credit Card, as you are having a flat rate.

 

I prefer a company to give you the choice, AS LONG as prices are worked out not to include these fees (unfair if they include them in their overheads when working out prices AND charge you as well), this way, you give the consumer the best possible price you can, based on their payment method.

 

Just my opinion, as i don't know your business, but that is how we operate.

 

PS - As to whether the % they charge is fair is up for debate, but i agree that if they are charged by their bank per transaction, the fee should be passed on, so those using other payment methods are then not penalised.