Are excessive credit card fees for booking holidays set to end?

PA

Travellers could see the end to excessive surcharges for buying holidays with debit or credit cards under new Government rules.

Companies will be banned from making a profit by charging extra fees for card payments above the amount it costs them to process the payment, Sky News reported.

Airlines, theatres and other retailers will have to make sure their card charges are clearly displayed upfront.

'Traders will no longer be able to make a profit by charging the consumer for credit or debit card use above the amount it costs them to process that payment,' said Consumer Affairs Minister Norman Lamb.

'These proposals will stop companies from adding on these excessive charges, and allow consumers to see a clearer and more transparent breakdown of what they are paying for.'

Consumer group Which?, has campaigned for excessive credit and debit card surcharges to be outlawed and said the consultation was 'well overdue' but a 'step in the right direction'.

Executive director of Which?, Richard Lloyd said: 'The Government must ensure that all businesses only charge the genuine cost they incur for processing the payment and that they are upfront, and make this clear to consumers.

'We also want to see a robust enforcement regime in place to make sure firms are held to account if they flout the ban.

'The Government must now act quickly to meet its promise to ban these excessive charges by the end of the year.'

According to the Daily Telegraph, airlines charge a minimum of £4.50 and Ryanair charges £6 for a card transaction.

Budget airlines can use the card fees as a way of increasing their profits from selling cheaper tickets.

Some tour operators have credit card fees of 2.5 per cent.

Check out the ten things we love to hate about flying with budget airlines...

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