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December 23rd, 2011 
FAKE NEWS for the Zionist agenda
By
Sarah Gordon
Last updated at 4:34 PM on 23rd December 2011
Ryanair today stuck two fingers up at the Treasury’s order to scrap ‘hidden’ credit and debit card charges by pledging to retain its £6 per ticket booking fee, branding it as an ‘administrative cost’.
The Treasury announced that inflated fees, often added in the final stages of a transaction, will be banned and companies will only be able to pass on the exact processing fee charged by banks, which is often in pence rather than pounds.
But in a ruling that effectively comes down to semantics, Ryanair has said its ‘administration fee’ is not passed on from the banks, therefore its £6 per person per ticket charge still stands.
Exempt: Ryanair claims its £6 per ticket levy will not fall under the new legislation from the Treasury
The Government move, which follows a call by the Office of Fair Trading for consumers to be able to see ‘up front’ how much they will have to pay, is set to be in place by the end of 2012.
But while many airlines, holiday companies and other retailers will be forced to only pass on the minimal processing fee to consumers, Ryanair believes it will be free to add its hefty surcharge under another name.
Controversial: Ryanair CEO Michael O’Leary is often criticised for the company’s use of add-on charges
Stephen McNamara, spokesperson for
the budget airline, said: ‘From what we understand, the Treasury is
going after companies who add a processing fee which is a multiple of
what the banks actually charge. Ryanair has never imposed debit and
credit card fees.
‘Instead
our charge is an administration fee, used to cover our own costs.
Ryanair has 20 websites in 11 foreign languages and the money is used
for the development, upkeep and translation on these sites.’
The
airline also points out that it issues a ‘Ryanair cash passport’, which
can be bought for a fee and used to book flights without incurring the
£6 per ticket charge.
Ryanair today turned the tables on the Government, accusing it of using ‘smoke and mirrors’ to overcharge consumers.
Mr McNamara said: ‘The Government is going after companies for these extra charges to “protect the consumer”, but if you really want to keep costs down for flights, then get rid of Air Passenger Duty.’
APD is due to increase again in 2012 by up to 10 per cent, which is twice the rate of inflation.
While Ryanair may believe it has the
last laugh on card charges, Which? thinks the airline – and any other
company hoping to get around the ban – could well be investigated.
A
spokesperson for the consumer watchdog said: ‘We would think there will
be a thorough investigation of any companies such as Ryanair and
easyJet, who add surcharges for using cards.
‘Our
aim is also to have any fees added on at the beginning of the payment,
rather than at the end, to make it easier for consumers to compare
prices. Therefore, airlines will be forced to show the true ticket price
before the point of payment.’
Surcharges: Ryanair lists the £6 per ticket charge on its website
Fellow budget airline easyJet, which charges a flat booking fee of £8 per booking, did not want to comment on the Treasury decision until more detail was released about which companies will be forced to comply.
Consumer champion Which? submitted a ‘super-complaint’, backed by thousands of supporters, to the OFT earlier
this year and have claimed debit card surcharges were adding £265,000 a
day to the cost of flights.
The OFT found considerable evidence of
companies using ‘drip pricing’ practices for surcharges online – adding
payment charges to the total price only after consumers have filled in a
number of web pages during their purchase – and warned the practice was
spreading.
Which? estimates that when paying by debit card, the cost to the retailer is 10p to 20p.
The cost of a credit card charge to a
retailer is calculated as a percentage of the value. Which? estimates
the real cost of processing a credit card transaction is no more than 2 per cent
of the value of the purchase.
A Treasury source said today that the Government was unlikely to accept Ryanair’s definition of the charge and may be ordered to reduce it in the future.
It is not just airlines that will be affected by the crackdown. Health clubs, sports and music ticketing firms and even Government agencies such as the DVLA, which distributes driving licences.
The report followed a campaign by the consumer rights group Which? It filed more than 50,000 complaints about rip-off card deals with the OFT.
From mid-2014 an EU Consumer Rights Directive will ban businesses in many sectors, including airlines, from imposing above-cost surcharges on any form of payment.
But Treasury minister Mark Hoban will today announce a consultation to ban the practice nearly two years early in Britain, by the end of 2012.
Mr Hoban, the Financial Secretary to the Treasury, said: ‘We want consumers to be able to shop around. They have a right to understand the charges they may incur upfront and not be hit through a hidden last-minute payment surcharge.
‘We’re leading the way in Europe by stopping this practice. The Government remains committed to helping consumers get a good deal in these difficult times.’
Ministers also want to act against excessive ‘administration fees’ imposed when people shop online for flights, holidays, concert tickets and rail travel.
A senior Treasury source said: ‘We want this to go as wide as we can to prevent excessive charges.’
Under the plans, businesses will not be able to load on excessive payment surcharges. But they will be able to add a small charge to cover their real costs for using any particular form of payment.
That is likely to cap credit card costs at a maximum of 2 per cent per transaction, or around 20p for a debit card payment.
Airlines regularly charge 3 or 4 per cent for credit card payments.
He said: ‘The Government’s decision to ban rip-off debit and credit card surcharges is a huge victory for consumers. More than 50,000 people supported the Which? campaign to see these fees stamped out.
‘This announcement goes further than the Office of Fair Trading’s proposals, finally putting an end to these unfair and excessive charges.
‘Given that airline passengers alone pay more than £265,000 a day in card surcharges, businesses shouldn’t drag their feet over this. While the law will come into force at the end of 2012, we want companies to be upfront and fair over card charges today.’
The Department of Business will finalise the new rules once the consultation is complete.
Consumer Minister Edward Davey said: ‘We want to make sure that consumers paying by card do not have to pay the excessively high surcharges being imposed on them by some airlines and other businesses.
‘That is why we will consult on early implementation of the Consumer Rights Directive provision to protect consumers from excessively high credit and debit card charges.’
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Asked if planes even need wings anymore, the above photo illustrates his reaction.
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He must be a bit thick. All he has to do (the same as they all will do) is stick the price on the product and say ‘Look we make no charge for credit cards’ Like the sign at the Post Office and others, when changing pounds Stirling for other currencies. ‘No commission charged here’! They have already included the price on the transaction! Airlines will do just the same!- David Prestbury ‘Treacle town pies’ Best in Macc., Macclesfield, 23/12/2011 13:59————— Treacle Town Pies. I agree. Trying to compare airline ticket prices is purposely designed to confuse just as the energy companies and their thousands of different prices. We want the total price up front but I very much doubt it will ever happen!
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DON’T fly with them then?
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As an Irishman I detest o Leary and his chav airline
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All people want is transparency not hidden charges. Shouldn’t be allowed to advertise 1p flights when you clearly cannot get these deals.
The biggest joke is the luggage allowance (it’s divided into the number of cases). So 15kg allowance – ryan air charge for a second or 3rd case but your 15kg is now 5k per case….. Guess what …. More over weight Charges even though paid 120 extra for baggage. This just isn’t cricket….
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“More power to your elbow Mr O’Leary. If they try to make you do away with the admin fee just add it to the price of the seat.”
– Andrew, Bournemouth, 23/12/2011 20:19
Isn’t that exactly what they are trying to make him do ?
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It’s a fee which is applied to credit/debit card bookings. By his own admission it is not applied to cash transactions..yet cash transactions require more effort to process, conclusion: it is not an administration fee to cover the cost incurred by the company, it is indeed a transaction fee covering the cost of credit/debit card transactions. And therefore it will be declared illegal.
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I am always very happy with Monarch !! The bottom line is that they give value and satisfaction to me !!!
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Well that’s the last time I’ll fly with these decking reedy money grabbing feckless idiots.
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Ryanair again, what a surprise! They are the first never the last. Have a good 2012 will you make 2013
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