Originally Posted by spotwelder
If, for example, the fare and taxes and and and were £100, then the credit card charge of 4.85 would represent 4.85% addition. what do airlines end up getting charged by the credit card companies? Any idea anybody. This could be interesting as a cross subsidy issue. If the airline is charged an average of £3 but passes on a £4.85 to the punters, there is a hidden airfare subsidy of £1.85 per pax. Very naughty.
The rate that bmi pay for the transaction will obviously have been negotiated with their merchant serives provider, however, a company the size of bmi with their CC turnover, there isnt a chance that it is anywhere near 4.85%! I am a business manager for a UK high street bank, and we don't even charge our new start, few small transactions a week, customers that!