In which case, why not incorporate the fees into the price. That way, when you go to checkout and choose your payment method, you're not going to feel like you've been "stung" for using a card.

You wouldn't go into a supermarket and expect to have a surcharge added on to the bill for paying by card, so I'm sure that they have the card fees built into their pricing structures.

The retailer has to pay a fee to the credit card company everytime you pay with it so it isn't unreasonable for them to want to recoup this cost by charging you a fee. Agree with the government that the amount should reflect what they actually pay and if debit card transactions are free to retailers then they should be the same cost as cash.

Consumers only pay for the privilege of having a card if they opt for one with an annual fee or don't settle the bill each month. For alot of people having a credit card is free (or even gives them cashback) plus the security of being able to claim from the credit card company if something goes wrong.

What I suspect is that prices will creep up slightly or an "admin fee" will be introduced instead.

I don't in all honesty see why there should be a booking fee for using a credit or debit card.

To my mind, use of a debit card is pretty much the same as paying with cash - you have to have the funds available to be able to make the transaction.

As for credit cards consumers are already paying for the privilege of having one, and with rates as high as 39.9% in some cases, I don't see why it is necessary to have to pay a second time to the retailer for using a card.

A Christmas present from the Government?

The Government has announced it is going to ban excessive credit and debit card surcharges when buying online.

It's been pretty clear for some time that a number of airlines and ticket booking agencies have been making significant profits from these fees. Card transaction fees normally range between 2% and 6%. I heard on the radio thsi moerning that HMRC charge 1.44% for credit card transactions, while debit card charges are free.

The decision is likely to impact on retailers’ profit margins but will provide greater transparency and stop certain companies hiding behind artificial card transaction costs. The decision will go through a 12 month long consultation period and is likely to be brought in sometime in 2014.

What do you think? Should credit and debit card charges be limited? Should the change be brought in sooner?

Graeme

Community Manager
graeme.delap@moneysupermarket.com