It’s recently been announced that the EU are making a big change to the way holidaymakers are charged when booking trips away, whether that be abroad or here in the United Kingdom.
But what does this mean for people looking to head off for that much-needed break? How might you be impacted and what are the plus points and potential downsides? All is revealed here…
As of Saturday 13th January, travel companies can no longer charge customers for paying via credit or debit card. This applies to payments for any goods or services, including things like airport parking or the actual holiday itself.
It has been introduced in an attempt to decrease the price of booking a holiday for consumers and to prevent companies from penalising or gaining profit from those who wish to make card payments.
The ban impacts all bookings made after 18th July 2017 and payments made after 13th January 2018. This means that if you booked before 18th July 2017, a charge can still be imposed for paying by card. However the new rule states that customers cannot be charged extra for paying any remaining balance by card on holidays booked after 13th January 2018.
You might still be charged a general booking or administration fee, but this cannot be linked to the way you are making a payment. It’s also worth noting that you could still be charged extra when paying with a business credit or business debit card.
Consumers can take advantage of deferring their holiday cost, without worrying about any extra charges this might involve from the booking agent, as well as benefiting from the protection credit cards offer. For example, refunds are obligatory should the airline or travel company your holiday is booked with goes out of business.
The change has been met with fury by some in the travel industry, who claim it may be necessary to up the cost of holidays in order to make back the charge that is enforced upon them by banks for processing credit card payments, typically 2%.
It is also argued that the rule could force smaller companies to liquidate or simply start charging administration fees for all bookings. If this happens, it’s reasonable to think those who usually pay upfront in cash or by direct bank transfer will be losing out more than most.
The change has been enforced by the EU, so could possibly be reversed post-Brexit. It’s best not to assume that all companies have immediately complied with the new rule however, as recently suggested by The Money Saving Expert, so always check to make sure a fee hasn’t been added for any travel payments in the coming days and weeks ahead.
If you have been asked to pay a fee for using a card or incorrectly charged, check if the company is aware of the new ruling relating to this. If they still persist, inform local trading standards.
Published on 18th August 2017
Published on 24th August 2017
Published on 14th September 2017