‘Super-complaint’ on cards over customer surcharges

Consumer watchdog Which? is calling on the Office of Fair Trading (OFT) to investigate the charges, saying they are often “sprung” on the customer at the point of payment and could be far in excess of what it costs the retailer to process the transaction.

It claims low-cost airlines are among the worst offenders, with some charging a fee per passenger per leg of the journey, in spite of them having to process just one transaction.

Which? said it believed the actual cost to the retailer was no more than 20p for a debit card transaction or a percentage of a credit card transaction, thought to be no more than two per cent. However, charges to the consumer are often a fixed amount or can increase based on the number of people buying tickets. Local authorities, estate agents, cinemas and even the DVLA were beginning to levy excessive charges for paying by card, Which? said and it is calling for consumers to be told about any surcharges upfront “in plain language” in their advertising and promotions.

It also wants fees to match the actual cost to retailers, or for retailers to absorb the “very small” cost of debit card transactions.

Which? chief executive Peter Vicary-Smith said: “Companies shouldn’t be using card processing costs as an excuse for boosting their profits.”