09 Mar 2015

A question about : 3.5% surcharge for paying by credit card

The travel agent told me I have to pay the above fees if I pay my tickets with credit card approx. Ј75 which seems quite a lot to me. Tickets costs over Ј2000.I do not mind paying by debit card but my husband says debit card does not offer the same protection like credit card. Pl can anybody advice. I do not want to pay the extra fees. Thanks

Best answers:

  • Companies are allowed to charge for accepting credit cards but they can only charge what the credit card companies charge them.
    Your hubby is correct in that when paying with a credit card you get far better protection than by paying with a debit card. (Do a google for "section 75 of the consumer credit act" for further information)
    However, you don't have to pay the full amount on your credit card to be covered so if possible, your best bet is to pay a deposit on your credit card and the balance on your debit card.
  • Thanks tickets comes nearly Ј3000. I do not think a company like Air Mauritius will go bust. I understand the protection is if the company went into administration even if I have bought the tickets from a travel agent.
  • TA very reputable, tickets will be electronic as soon as I pay in full. I am not concerned it is hubby who is making a fuss. Once I have got my tickets, I should not be concerned if the company goes bust. Am I right? Thanks
  • For S75 to apply just some of it must have been paid by credit, it doesnt need to be the whole bill. So you could pay Ј100 or less on credit card with a Ј3 fee and pay the rest by debit card and so no fee and still get full protection.
  • Making a Section 75 claim
    There are some limitations to when a card company is liable along with the retailer or trader. The item or service you bought must have cost over Ј100 and not more than Ј30,000.
    However, to claim under Section 75 you don't have to have paid the full amount on your credit card - the card company is liable even if you made only part of the payment (a deposit, say) on your card.
    It's the value of the goods you're buying that is key - not the amount paid on the card.
    However, I wrongly thought the same protection applied to debit cards as I always pay by this method so maybe I should get a credit card now.
  • I assume paying a travel agent was much cheaper than booking with the airline direct?
  • Regulations will only be enforced if they are challenged.
    1) Challenge the merchant.
    2) If challenge (1) fails advise them that you will take them to the small claims court to recover the excessive charge.
    3) If challenge (2) fails carry out the threat.