OFT to take action over payment surcharges

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A topic from Work & Money: General Finance

laresTue 28/06/11 21:40		"The OFT has put passenger travel companies on notice to change misleading debit and credit card surcharging practices or face enforcement action under consumer protection laws. Publishing its findings on these surcharges, following a super-complaint from Which?, the OFT also calls for the law to be updated to stop consumers being surcharged when buying goods and services with any debit card. A 90 day OFT investigation into the issue, which focused on the passenger transport sector, found considerable evidence of companies using 'drip pricing' practices for surcharges online - adding payment charges to the total price only after consumers have filled in a number of web pages during their purchase. This practice is particularly prevalent in the airline sector - where the OFT estimates UK consumers spent £300 million on payment surcharges during 2009. The OFT considers that surcharging for using a credit or debit card is potentially misleading to consumers when it comes as a surprise - particularly when free payment mechanisms are only available to a small proportion of consumers, making a surcharge effectively compulsory." http://1sq.me/jx0Aql
laresTue 28/06/11 21:41		I have mixed feelings about this. On balance, I think I'd rather see surcharges that are (albeit eventually) known before booking than something like a "fuel surcharge" that companies like BA impose after booking.
#205227Tue 28/06/11 21:44		Good for the OFT. About time this sharp practice was outlawed. Whilst they are at it could they outlaw booking fees for sporting events, concerts and such like when the only option is to book online or by phone
dazbarTue 28/06/11 21:57		I understand firms want to charge people for card transactions, private or public sector, but they're taking the piss when they charge £6 / £8 / £12 for card charges In my pub, we get charged 13.5p per debit card transaction, 1% for credit cards and 1.8% for business cards

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