Additional charges

  K_elt 11:29 24 Apr 08
Locked

Recently I received an email advertising new flights from a company I've used a few times and noticed the charges for making a payment have gone up.

To use a credit card it is now £5, for a debit card £0.75. Is this how much it actually costs the company, or are they making a profit from the payment method as well as the ticket cost? (They don't offer the ability to pay by cash locally, you have go to an airport in another county for this facility!)

I also bought some carpet for a bedroom recently and noticed that due to the way it is sold i.e. 4m wide rolls, the piece left over was 19% of the original purchase price!

Then you have to dispose of the extra, and looking at how some councils are charging and imposing fines for too much rubbish, even an off cut of 2sq mtrs is a lot of waste.

Can you get carpets cut to size at the point of purchase, and what difference is there in the cost?

  lisa02 11:35 24 Apr 08

We recently got new capet in the hall and stairs, the waste parts (several large pieces) are being used as mats.

  lisa02 11:37 24 Apr 08

Ooops, Visa charges the company for processing payments but I doubt it's any where near the £5 they charge. They could argue that it's Visa's slice and then the remainder is to cover the admin of processing your payment at their end too.

  peter99co 12:05 24 Apr 08

I re-carpeted a caravan with offcuts and made two mats for £5. The mats were bound around the edge £2 for 1 and £2.50 for the other. It pays to shop around and tell them where they can stick their extra's. The last carpet I had fitted and paid by sq mtr the left over was used in the car boot and the garden shed. They must have made a profit but the fitting was 'free?' but i felt pleased with the result,knowing the price was fair.

  Stuartli 13:45 24 Apr 08

If you know a good carpet fitter, then they are easily capable of working out exactly how much carpet to buy (when tackling older properties and using metric sizes for carpets).

When we had to re-carpet the stairs and middle landing, the carpet fitter measured up, advised a particular length and width of carpet and then cut it out as appropriate before doing the fitting.

The amount of waste was very small indeed.

  K_elt 19:04 24 Apr 08

Unless there are remnants in the colour, type and pattern that are closer to the size you want, then the standard roll size is 4m (at least in the shops in my area). It seems you have to accept that you have off cuts you don't want (there are only so many pink mats I could make use of) but will constitute a large part of the cost which I consider nearly a fifth of the price to be.

Lisa02, I tried emailing the airline to ask if the cost reflected the charge to them, they answered by sending me an email outlining the charges imposed by other airlines! Nothing like a clear, straight answer!

  interzone55 20:36 24 Apr 08

How much were the plane tickets - Visa charges are a % of the transaction, so if the tickets were in the region of £150 I can easily see the Visa charge being £5.

Debit card payments are a flat fee, usually somewhere between 50p & £1 depending on the number of transactions per week.

  K_elt 22:35 24 Apr 08

I was looking at new flights they are doing to Glasgow, from £29.

  interzone55 09:08 25 Apr 08

So that was a £5 charge on £58 - I'd say that was your airline also covering some "administration costs" as well. This can be a variety of things, such as expenses incurred investigating card fraud, which is time consuming and expensive.

The airline business is cut throat and margins are extremely low, so the trend is to pass direct costs onto the customers as additional charges. So for example the airline pays for access to baggage handling equipment and passes that on to passengers who use the service.

  K_elt 10:45 25 Apr 08

Alan14 you've lost me now. £58? A member of my family was looking to come here for an extended stay, so it was a one way price I looked at.

I was unaware airlines carried out card fraud investigations, I understood that was the card companies that did that. You live and learn.

I understand about the margins, and yes, if you use hold baggage there is an additional charge, but I still don't see why a charge of £5 for using a CC as it still seems steep to me. I've tried googling on this since posting and it shows it is normally a %, 2% being the average. This gives a lot lower figure than £5, even after adding on airport taxes etc.

If it's for processing at the airlines end, why are debit card payments less? Where's the additional processing involved for a CC?

  interzone55 12:19 25 Apr 08

The credit card companies levy a fee on businesses, this is generally based on volume of transactions and ranges from about 1% for large businesses, to 5% for small ones.

If the CC company refuses payment it is down to the business (be it a shop, airline, escort agency, whatever) to prove they took the payment in good faith, if they can prove that (and it's easier with chip and pin) then the CC authorises the payment and absorbs the cost, if the business can't prove they took adequate action to validate the payment the CC will refuse payment and the business loses the money. Even though the proof is now quite simple, it still involves someone processing forms so incurs costs for the airline...

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