Travel Firms Ordered To Scrap Card Charges

Airlines and travel companies face the threat of legal action if they continue to spring hidden charges on customers who pay by debit and credit cards.

An investigation by the Office for Fair Trading (OFT) found "considerable evidence" of drip-pricing - where surcharges are added to the total price only after people have clicked through a number of web pages.

The watchdog described the practice as "misleading" as it released findings of a 90-day review following a super-complaint by Which?, the independent consumer body.

However, some airlines, such as Ryanair, said all "optional" fees are avoidable and that the investigation would not change the way it did business.

The OFT did not name the worst offenders, but pointed out that easyJet charges £8 per card transaction after customers pass through eight web pages. Ryanair adds £6 after four pages.

The OFT is asking the Government to change the law so that all debit card surcharges are scrapped.

It says that a number of rail, airline and ferry companies have already agreed to scrap them, but some firms have refused point blank.

The OFT said it would consider legal action if the situation does not change.

The review points out that in many cases the consumer has no option but to use a credit or debit card and they are effectively being made to pay for paying.

One of the airlines to scrap debit card charges is Monarch.

A spokesman told Sky News: "There is no justification for charging excessive fees on credit and debit cards.

"We had already taken the decision to cancel debit card fees some time ago following an intensive six month review.

"Our customers expect an up front and transparent pricing structure from their airline and it's good to see that in light of this important decision, other airlines will now have to follow our lead."

The OFT did not explore credit card charges because of the complex, multi-layered pricing structure.

However, the Consumer Rights Directive, which is currently going through the European Parliament, would, if successful, force governments to ensure that only the bare minimum is charged for credit card transactions.

Which? welcomed the OFT's review and urged all online companies to take the recommendations onboard.