Some UK Airlines Charge Extra Fees for Credit Card Payments
Airline companies in the U.K. are charging fees as high as 2% to consumers paying with a credit card, according to new research from Fairer Finance. This is occurring despite a ruling in December that capped interchange fees in the European Union at 0.3%. In other words, airlines are charging people substantially higher processing fees than what they are actually paying to the payment processors.
James Daley, the author of the study, said that five years ago, some airlines were charging £6 per person for each leg of the flight (about $7.73 USD). That means that a family of four making a simple round-trip flight on a UK airline would have to pay $60+ USD by choosing to pay with a debit or credit card. The fees have improved since then, but they are still much higher than they should be.
While some airlines chose to eliminate (Jet 2) or greatly reduce (Easyjet) their fees, some elected to keep their credit card fees high regardless of the interchange cap. Daley and his team discovered more than 100 companies that charge more than 1% for credit card processing. Flybe and Monarch had the highest fees at 3%, while Ryanair came in at 2%.
If you are planning to use a UK airline for your upcoming travel plans, make sure to note the credit card processing fees on your tickets before making a payment. You could end up spending significantly more than you expected for your travels.