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dibby444

Credit Card Fees

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In late July 2016 I booked a 2017 cruise with Bolsover and was charged 1.5% on my credit card deposit.  Now I read in this morning's paper that as and from 4th July 2016 card suppliers are only allowed to charge a maximum of 0.3% on credit card transactions.  Does this mean a) Bolsover is not aware of this, and/or Bolsover is still being charged by the card companies more that the rules allow and so is passing on that cost to booking customers and/or c) Bolsover is now being charged 0.3% but is still charging customers at the old rate of 1.5%?

 

Anyone else noticed this?  A comment from Bolsover as to the new situation would be welcomed.

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There is another thread on this and Bolsover did comment:

 

As always the answer is not straight forward. In most cases we have taken the commercial decision to process client credit cards directly with cruise operator, thereby no pipeline monies are held by ourselves at any time during the booking process. This means that we offer clients maximum protection for their money, a level of confidence that is not generally available elsewhere. As a consequence, when booking via ourselves, the card transactions are subject to the fee imposed by the cruise operator, which is generally 1.5%. A small number of operators such as Royal Caribbean and Celebrity Cruises build the credit card fee into the gross price, so they do not make any charge at the credit card payment stage and I see one of the forum posts makes mention of this. In the smaller number of cases where we actually take the credit card payment ourselves on behalf of the cruise operator, we charge 1.5% and do not make any profit from this in accordance with current legislation.

 

The original post is referring to recently reduced bank “Interchange fees” and not “merchant charges” and so any reference to these charges is misleading in a discussion about the level of credit card charge being passed on by an agent.  It is also misleading to compare different industries. A purchase from John Lewis for furniture is likely to be subject to a mark-up of at least 100%, when a travel agent margin will be less than 5%.

 

In the end the cost of using a credit card has to be borne by the consumer. It can either be built into the product cost, or added as a fee. Research and experience tells us that clients generally prefer the latter as this means they are free to use alternative methods of payments such as a debit card to avoid charges altogether.

 

I still don't understand it

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There is another thread on this and Bolsover did comment:

 

As always the answer is not straight forward. In most cases we have taken the commercial decision to process client credit cards directly with cruise operator, thereby no pipeline monies are held by ourselves at any time during the booking process. This means that we offer clients maximum protection for their money, a level of confidence that is not generally available elsewhere. As a consequence, when booking via ourselves, the card transactions are subject to the fee imposed by the cruise operator, which is generally 1.5%. A small number of operators such as Royal Caribbean and Celebrity Cruises build the credit card fee into the gross price, so they do not make any charge at the credit card payment stage and I see one of the forum posts makes mention of this. In the smaller number of cases where we actually take the credit card payment ourselves on behalf of the cruise operator, we charge 1.5% and do not make any profit from this in accordance with current legislation.

 

The original post is referring to recently reduced bank “Interchange fees” and not “merchant charges” and so any reference to these charges is misleading in a discussion about the level of credit card charge being passed on by an agent.  It is also misleading to compare different industries. A purchase from John Lewis for furniture is likely to be subject to a mark-up of at least 100%, when a travel agent margin will be less than 5%.

 

In the end the cost of using a credit card has to be borne by the consumer. It can either be built into the product cost, or added as a fee. Research and experience tells us that clients generally prefer the latter as this means they are free to use alternative methods of payments such as a debit card to avoid charges altogether.

 

Thanks MG16 for posting, this statement does highlight our current policy.

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I have always been charged credit card fees when booking holidays, last year with Thomas Cook (I think 1.5%) and a couple of years ago with Iglu and it was a whopping 2.5%! Where possible I always try and pay by bank transfers when its for a large amount.

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Neither is there the protection offered by paying with a credit card.

 

People always mention this 'protection' what added protection do you actually get by paying with a credit card? I would assume if anything happened if you paid on a debit or credit card you would get the money back under the abta/atol protection anyway?

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People always mention this 'protection' what added protection do you actually get by paying with a credit card? I would assume if anything happened if you paid on a debit or credit card you would get the money back under the abta/atol protection anyway?

If a company goes bust where you have used your credit card it will cover you to get your money back, with a debit card you just become one of the companies creditors. If you pay for goods that are not delivered your credit card will cover the cost whereas a debit card won't. Have a look at this link, it explains things far better than I can. 

http://www.moneysupermarket.com/credit-cards/guide-to-credit-card-protection/

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If you book your cruise or any holiday and they are ABTA bonded your money is safe and will be returned or used to book another holiday with another company. Doesnt matter whether you pay by credit card, debit card or cash. It has happened to me where holiday company went into administration and had no problems getting my money reimbursed. Never understand why people pay charges of up to 2.5% on a credit card which can be a substantial amount when they are already covered by ABTA.

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Very true Sinbad, highlighted recently by the holiday company that went bust who were not ABTA bonded but via a Spanish equivalent, always pays to check that who you book with has the right protection in place

 

This is an example of where if paid by credit card they would be covered. Thousands of people lost money with "Low Cost Holidays" who were registered in Mallorca and not covered by ABTA or ATOL. Bet some wish they had paid the credit card charges.

I think because most of us on this forum are into cruises and probably book direct with the cruise lines or use the well known agents were are inclined to forget there are companies out there offering holidays where their registered office is outside the jurisdiction of the UK and are not ABTA or ATOL bonded.

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