Credit card fees to be scrapped. Impact on BA?
Jul 19, 2017, 6:38 am
#31
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Jul 19, 2017, 6:41 am
#32
Join Date: Oct 2004
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Reading this.... EU directive for MC and VISA is this already in place and therefore applicable? if so since when? or is it just that the UK is coming into line with the EU directive on 1st Jan?
Jul 19, 2017, 6:43 am
#33
Join Date: Dec 2009
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It will just be an excuse to raise prices across the board by 5%.
In the US, to get around this rule, companies will offer a discount for paying with cash or debit, but I assume the UK and EU are a bit more strict in their regulations to prevent that practice.
Also for those saying they might switch to accept cash only which is not going to happen, I'm pretty sure the EU does not allow cash to be used for payments over a certain amount (anti-money laundering regulations).
Or BA could always add a fraud insurance surcharge to all tickets...
In the US, to get around this rule, companies will offer a discount for paying with cash or debit, but I assume the UK and EU are a bit more strict in their regulations to prevent that practice.
Also for those saying they might switch to accept cash only which is not going to happen, I'm pretty sure the EU does not allow cash to be used for payments over a certain amount (anti-money laundering regulations).
Or BA could always add a fraud insurance surcharge to all tickets...
Jul 19, 2017, 6:45 am
#34
Join Date: Mar 2017
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If BA could reduce their card handling fees they would have done so already and pocketed the cash as it'll be a serious amount of money for a business their size.
It'll make the total price more transparent, not cheaper.
Jul 19, 2017, 6:46 am
#35
FlyerTalk Evangelist
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Don't worry. Theresa May or whichever Tory is in power on March 29, 2019, will bring these rip-off charges back as the first post-Brexit act of reclaiming sovereignty. (The DVLA earns £8.5m in credit card surcharges per annum)
How dare Brussels stand up for the British consumer!
How dare Brussels stand up for the British consumer!
Jul 19, 2017, 6:52 am
#36
Join Date: Dec 2002
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On the TV at least, in the business segment of BBC News Channel at 13:44 today they said that, "...the government will ban businesses from charging customers extra for paying by card, but they can pass on the processing fee..."
That would mean that BA and everyone else can add the actual cost to them of processing the transaction, but not rounding it up or making it a fixed fee.
Would that encourage them to scrap the capped amount currently in place for those who might be making some very expensive purchases?
That would mean that BA and everyone else can add the actual cost to them of processing the transaction, but not rounding it up or making it a fixed fee.
Would that encourage them to scrap the capped amount currently in place for those who might be making some very expensive purchases?
Jul 19, 2017, 6:56 am
#37
Ambassador, British Airways Executive Club, easyJet and Ryanair
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Don't worry. Theresa May or whichever Tory is in power on March 29, 2019, will bring these rip-off charges back as the first post-Brexit act of reclaiming sovereignty. (The DVLA earns £8.5m in credit card surcharges per annum)
How dare Brussels stand up for the British consumer!
How dare Brussels stand up for the British consumer!
Jul 19, 2017, 6:58 am
#38
Join Date: Mar 2017
Programs: BAEC GGL
Posts: 261
Don't worry. Theresa May or whichever Tory is in power on March 29, 2019, will bring these rip-off charges back as the first post-Brexit act of reclaiming sovereignty. (The DVLA earns £8.5m in credit card surcharges per annum)
How dare Brussels stand up for the British consumer!
How dare Brussels stand up for the British consumer!
I'm not convinced it's actually a significant consumer benefit really, payment processing costs money and customers will be paying for it somehow but I guess it makes fare comparison slightly easier..
Jul 19, 2017, 7:02 am
#39
Join Date: Oct 2015
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EU Regulations have direct effect, but EU Directives don't (although the CJEU has gone a bit wild in its interpretation of that). So in theory, Directives are basically a set of instructions for Member States to create implementating legislation in their domestic law. This Directive (2015/2366) was passed in November 2015, with an implementation deadline of 13 January 2018. So it's not applicable for Visa or MC at the moment either, but when the UK government brings the implementing legislation into force, it will apply to Visa, MC, Amex and PayPal simultaneously.
Jul 19, 2017, 8:01 am
#42
Join Date: Feb 2008
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Revenue management doesn't calculate fares on some kind of cost+ basis - it's done on what they think they can get away with charging. Assorted fees are on top, which is why they're so attractive to firms like BA trying to maximize profit. If something like credit card fees are banned, there is a high likelihood most of that will hit BA's profits until/ unless they come with another spurious charge.
Jul 19, 2017, 8:39 am
#43
formerly southsidesilver
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I think most credit cards will have new annual fees come onto them if you still want to earn miles, just like in the US. And most airlines will just put the cost into the ticket prices.
Jul 19, 2017, 8:45 am
#44
Join Date: Jul 2011
Programs: BAEC Gold, LH M&M Member
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Coming late to this, but what really grinds my gears is BA attempting to charge the credit card fee on their own credit cards.
Why they didn't just say "credit card surcharge of X% unless paying with a BA-Amex" (or whatever) is beyond me.
A bit late now, but that would've been great marketing for them.
Why they didn't just say "credit card surcharge of X% unless paying with a BA-Amex" (or whatever) is beyond me.
A bit late now, but that would've been great marketing for them.
Jul 19, 2017, 9:12 am
#45
Join Date: Oct 2006
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How short memories are for those in government. It was a Conservative government that re-introduced the ability to offer a discount for cash (or charge for credit cards if you like) as it distorted the market.
Now a Conservative government effectively abolishes that so credit card merchant fees get incorporated in every transaction. Can't even blame the EU - wouldn't affect Âmex otherwise.
As usual pathetic pandering to idiots and tabloids who don't have a clue. Does anyone really believe they will gain by this?
Now a Conservative government effectively abolishes that so credit card merchant fees get incorporated in every transaction. Can't even blame the EU - wouldn't affect Âmex otherwise.
As usual pathetic pandering to idiots and tabloids who don't have a clue. Does anyone really believe they will gain by this?