Excessive credit and debit card ‘surcharges’ on flights, concert tickets and other purchases could be banned next year, it has been revealed.
The fees, which can add up to £12 per person to the cost of a flight and up to £92 on a holiday booking, could be scrapped under government plans.
The ban – hailed as a ‘huge victory for consumers’ – will mean no company will be able to make a profit from card surcharges which cost airline passengers more than £265,000 a day, the Civil Aviation Authority said.
The Office of Fair Trading found in the summer that companies were increasingly guilty of ‘price dripping’, where additional charges are added throughout the online booking experience.
Treasury minister Mark Hoban Card sharp: Treasury minister Mark Hoban (Picture: PA)
‘We want consumers to be able to shop around,’ said financial secretary to the Treasury Mark Hoban. ‘They have a right to understand the charges they may incur up front and not be hit through a hidden last minute payment surcharge.
‘We’re leading the way in Europe by stopping this practice.’
The announcement follows a campaign by consumer watchdog Which? which found card ‘surcharges’ have risen by as much as 1,400 per cent in seven years.
‘The government’s decision to ban “rip-off” debit and credit card surcharges is a huge victory for consumers,’ said Which? executive director Richard Lloyd.
The government is likely to face opposition from companies claiming surcharges are ‘administration fees’ which could cover any number of costs, including staff wages.
