IT IS time the travel trade made strong representations to Visaand Mastercard to reduce the charges they impose on outlets accepting payment by ‘plastic’.
While charges imposed on the trade by Visaand Mastercard are relatively low compared to other retail trades, this is only because Visa and Mastercard are too well acquainted with our relatively low profit margins. However, our average spend by credit card is no doubt one of the largest in high-street trading.
I acknowledge we are all conditioned to pay for the privilege of plastic payment, but surely the system is in desperate need of updating. No doubt the cards were initially developed for the card-holder’s benefit as well as the card-provider’s profits and not – despite clever marketing – to benefit the card’s acceptors.
My company would find charging clients for accepting cards extremely difficult and embarrassing. If I were to offer payment of a substantial amount by credit card, I would not expect to pay an additional 1.5% to 2.0% surcharge – I still believe most credit-card users do not realise that charges are imposed on the recipients. Why can’t ABTA and the trade in general put to Visa and Mastercard that cards will continue to be accepted and current charges maintained up to a maximum charge of, say, £15 irrespective of the card value over and above £1,750?
After all, the actual costs of processing each item are no doubt similar whether it is £10 for petrol or £15,000/£20,000 for travel, holidays or other high expenditure purchases. Surely if a client wishes to use a card then as the card holder he or she should be prepared to cover the costs involved?
Brian Bass, director, Brian Bass Travel, Shrewsbury