UK: Airlines accused of charging too much for credit card payments

A consumer group is accusing airlines of charging passengers too much for paying with a credit card. Fairer Finance says airlines like Flybe, Monarch and Ryanair may be in breach of rules which say the charges should only reflect genuine costs. It claims Flybe and Monarch are the most likely offenders, putting a surcharge of 3% on bookings. However, the airlines argue that their charges do accurately reflect the cost of processing the payments. FF also accuses some insurance companies and local authorities of charging too much for paying by credit card. James Daley, the managing director of FF, said there were hundreds of companies he believed were in breach of section four of the Consumer Rights (Payment Surcharge) Regulations, which came into force in April 2013. "If they choose to charge for accepting credit card payments - in spite of the strong public sentiment against these charges - then the rules make it very clear that they can only pass on the cost," he said. Monarch told the BBC that its 3% surcharge did reflect its costs in processing the payments. And it said that those who paid via Paypal do not pay a surcharge. Ryanair said: "These claims are false. We fully comply with all EU regulations and our credit card charge reflects the cost of processing credit card payments, including bank charges."<br/>