UK Airline Defiant About Card Surcharges After Government Ruling

The ongoing battle between low-cost airlines and the United Kingdom government over card surcharges reached a climax Dec. 23 when the country’s Office of Fair Trading announced plans to ban what it considers to be excessive fees across different travel and entertainment channels.

Ryanair Ltd. says proposed regulation will not affect its prices because it says it does not add credit or debit card surcharges on ticket purchases. The airline has been outspoken on the subject since the controversy over fees many consumers contend are excessive first was raised earlier this year.

"Ryanair, the UK's favorite airline, today confirms that it does not impose any debit or credit card fees,” the airline said in a statement Dec. 23.

The airline maintains it adds £6 (US$9.39 or 7.19 euros) to each ticket bought online with a credit or debit card to cover costs related to its booking system.

Ryanair, however, says consumers can avoid the surcharges when using a cobranded prepaid debit MasterCard. The airline introduced the card just days after the Office of Fair Trading announced a formal investigation into airlines charging fees for credit and debit card ticket purchases.

The investigation came after the office suggested the country’s Treasury department could ban the surcharges with an amendment to existing payment regulations (see story).

A so-called super-complaint that consumer group Which? filed in June preceded the Office of Fair Trading’s original proposal. That complaint spurred the government body to take action (see story).

The UK government now plans to end what it deems are excessive surcharges on all forms of payment, not just debit cards, according to a press release from the Treasury department. The department will extend the ban across most retail sectors, not just transport, and the UK will become the first European country to enact forthcoming European Commission legislation to ban such fees before the end of 2012.

“They have a right to understand the charges they may incur up front and not be hit through a hidden last-minute payment surcharge,” Edward Davey, the UK Consumer Minister, said in a statement. “We’re leading the way in Europe by stopping this practice.”

The Irish government also said in a statement it plans to end excessive surcharging.

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