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ABTA fights for agents to keep credit card charges
ABTA has written to the government opposing its proposals to prevent companies from profiting from debit and credit card charges.
The travel association has told the Department for Business, Innovation & Skills (BIS) that the policy change, which the BIS wants to bring forward to next year, should not apply to package travel because it falls outside the scope of the Consumer Rights Directive.
If there is to be a ban on above cost credit and debit card charges, tour operators and travel agents will need more time to make the necessary IT and marketing changes, it said. "ABTA therefore argues it would not be appropriate for the ban on above cost credit/debit card charges to be implemented in the UK before the EU transposition deadline of June 2014."
It said that package travel is typically a low margin sector and is covered by the Package Travel Directive, which is currently under revision by the European Commission.
ABTA head of public affairs Luke Pollard said: "ABTA supports full transparency of pricing and has worked closely with the Office of Fair Trading to help guide policy in this area.
"The vast majority of our members offer the option to pay by debit card and absorb the costs themselves to allow consumers flexibility in how they pay.
"However, it is important that they can offer the option to pay by credit card and be able to recoup their associated costs. We believe that any changes to the policies governing package travel should be made via the forthcoming review of the Package Travel Directive, which specifically addresses the nuances of selling package travel rather than gold plating the Consumer Rights Directive."
The BIS consultation on above cost payment surcharges is part of a broader consultation on the European Consumer Rights Directive. As part of this, BIS is also running a consultation on the use of premium rate consumer helplines and opt out boxes, which will be ending shortly.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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