Twelve airlines agree to end debit card surcharges

06 July 2012 15:56:57

Airlines agree to scrap debit card surcharges.

Regulators and campaigners have secured a victory for consumers, after 12 airlines agreed to stop adding debit card surcharges at the end of the booking process. The Office of Fair Trading (OFT) made the announcement yesterday (July 5th) after obtaining a commitment from Aer Lingus, BMI Baby, Eastern Airways, easyJet, Flybe, German Wings, Jet2, Lufthansa, Ryanair, Thomas Cook, Thomson (TUI) and Wizz Air. The move means passengers who wish to pay by debit card will no longer have an unpleasant surprise just seconds before completing their transaction.

Debit card fees to be included in headline price
Although consumers may still pay extra to use a debit card with these 12 airlines, the transaction cost will now be included in the headline price. This means that customers will know exactly how much their flight will cost them up-front, unless they choose to add optional extras to their order.

The move follows enforcement action by the OFT, which was prompted to investigate by consumer watchdog Which? in March 2011. During the course of its investigation, the regulator determined that people should not incur surcharges to use a debit card online, as these transactions are not costly to process.

Credit cards not included in the agreement
The airlines' promise to include surcharges in their headline prices does not cover credit card transactions. The OFT believes this is acceptable, as credit card transactions are more expensive to process. It has, however, said that any surcharges incurred when using a credit card should be made clear during the online booking process and not revealed for the first time towards the end of the transaction. The 12 airlines have agreed to make these surcharges more transparent and easier to find.

OFT and campaigners pleased with outcome
Clive Maxwell, chief executive of the OFT, described the commitment as a "great outcome" for air passengers. "It is important that the cost presented when they search for a flight is realistic and that they are not surprised by extra charges. Otherwise it is harder for them to shop around for the best deal," he explained. Mr Maxwell added that some of the airlines have already changed their systems and processes, with the remainder doing so over the coming months.

Sarah Brooks, director of financial services at Consumer Focus, welcomed the news, noting that "nothing is more frustrating for consumers than seeing a good online deal disappear on the final screen before booking". She also pointed out: "It should get even better for consumers by the end of the year, when it is expected that the government will ban excessive fees levied when people pay by credit or debit card."

‹ Back

All news articles

All Home Page News
All News Stories

Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.

Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.