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sinbad10

Credit Card charges to be abolished

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Now that it has been announced that credit card charges are to be abolished from January 2018 do people think that the price of cruises will go up to cover drop in income. Having seen that credit card charges are 16p per transaction it leaves a bitter taste in my mouth that most cruise TAs charge 2%-2.5% to pay balance of a cruise which is by no means a small amount and makes a surcharge of average £50-£100 on average cruise.

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If a company charge for using a credit card then I pay by debit card, we only use our credit card for our PayPal transactions, and as more companies are now using PayPal buying online is now so much easier. I don't think that TA's will increase the cost of a cruise, we as customers have the choice to move our business the market is too competitive.

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I don't think the prices will go up no. Most businesses, no matter the industry charge a percentage for credit card use on certain transactions because it is what the bank charges them. They could choose to waiver the fee but that would mean a cost to the business, that could result in a loss depending on the fee so I do respect the issues businesses have with this and I speak from experience having been with multiple businesses over the years that have charged this fee. 

You tend to find that most TA's charge 1.5% although there are some naughty ones that go above that at 2.5%, which the cynic in me believes they're making a little on rather than just passing the fee on to their clients. Amex is often 2.5% across the board but again, some companies vary. 

The best thing to look out for, especially if using a credit card, is for cruise lines that let you make direct payments, even when booking through an agent. Royal Caribbean and Celebrity are just two examples of this where you can pay with a credit card and there is zero fee for doing so as the payment goes straight to the cruise line rather then being held by the agent first.

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1 minute ago, Countrygirl said:

If a company charge for using a credit card then I pay by debit card, we only use our credit card for our PayPal transactions, and as more companies are now using PayPal buying online is now so much easier. I don't think that TA's will increase the cost of a cruise, we as customers have the choice to move our business the market is too competitive.

Problem is I do not know of any, perhaps somebody can enlighten me, that does not charge 1.5% upwards for use of credit card when paying for a cruise and never have the equal amount in y bank account to pay by debit card.

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3 minutes ago, sammy sun said:

I don't think the prices will go up no. Most businesses, no matter the industry charge a percentage for credit card use on certain transactions because it is what the bank charges them. They could choose to waiver the fee but that would mean a cost to the business, that could result in a loss depending on the fee so I do respect the issues businesses have with this and I speak from experience having been with multiple businesses over the years that have charged this fee. 

You tend to find that most TA's charge 1.5% although there are some naughty ones that go above that at 2.5%, which the cynic in me believes they're making a little on rather than just passing the fee on to their clients. Amex is often 2.5% across the board but again, some companies vary. 

The best thing to look out for, especially if using a credit card, is for cruise lines that let you make direct payments, even when booking through an agent. Royal Caribbean and Celebrity are just two examples of this where you can pay with a credit card and there is zero fee for doing so as the payment goes straight to the cruise line rather then being held by the agent first.

It has just been on BBC news that banks charge 16p per transaction  for use of credit card and even though cruise TAs have used the excuse that they are just passing on charges this is obviously not true and misleading. If you are paying £3000 for a cruise and being charged £45 for the privilege of using credit card as Bolsover Cruise Club do i.e. 1.5% then it is a fair amount of profit on every transaction that only costs them 16p.

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15 minutes ago, sinbad10 said:

It has just been on BBC news that banks charge 16p per transaction  for use of credit card and even though cruise TAs have used the excuse that they are just passing on charges this is obviously not true and misleading. If you are paying £3000 for a cruise and being charged £45 for the privilege of using credit card as Bolsover Cruise Club do i.e. 1.5% then it is a fair amount of profit on every transaction that only costs them 16p.

This is a section taken from article in the Telegraph:

"Large supermarkets, for example, will be able to negotiate smaller merchant fees due to the number of transactions processed. Plus, credit card payments cost more to process than debit card payments, due to the costs associated with borrowing. There may also be extra security costs borne by the retailer in processing online card transactions.

The UK Payments Administration (UKPA) said the typical charge to process a credit card payment would be between 1pc and 2.5pc. For debit cards the actual cost is likely to be closer to 10p. It said that there seemed little justification for companies charging a credit card fee “per item” bought, rather than per transaction. Ryanair and bmibaby charge card fees per passenger per flight, even if all these seats are made in one credit card booking. Likewise, most ticket agencies levy a card charge per ticket."

This states that the typical charge is in fact 1% - 2.5%. The advantage with most agencies, with Bolsover at least, is that it is a transaction fee not a fee that is charged per person unlike the examples highlighted in the article. There are no charges for using a debit card but you don't get the security that comes with a credit card payment, hence why I like direct payments to cruise lines as there's no fee for credit cards as mentioned above.

 

 

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5 minutes ago, sammy sun said:

This is a section taken from article in the Telegraph:

"Large supermarkets, for example, will be able to negotiate smaller merchant fees due to the number of transactions processed. Plus, credit card payments cost more to process than debit card payments, due to the costs associated with borrowing. There may also be extra security costs borne by the retailer in processing online card transactions.

The UK Payments Administration (UKPA) said the typical charge to process a credit card payment would be between 1pc and 2.5pc. For debit cards the actual cost is likely to be closer to 10p. It said that there seemed little justification for companies charging a credit card fee “per item” bought, rather than per transaction. Ryanair and bmibaby charge card fees per passenger per flight, even if all these seats are made in one credit card booking. Likewise, most ticket agencies levy a card charge per ticket."

This states that the typical charge is in fact 1% - 2.5%. The advantage with most agencies, with Bolsover at least, is that it is a transaction fee not a fee that is charged per person unlike the examples highlighted in the article. There are no charges for using a debit card but you don't get the security that comes with a credit card payment, hence why I like direct payments to cruise lines as there's no fee for credit cards as mentioned above.

Doesn't matter how you look at it i.e. transaction or per person the amount is the same.

Cruise £1500pp x 1.5% = £22.50 x 2 people = £45

Cruise £3000 per couple x 1.5% = £45

 

 

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I was speaking in terms of simplicity rather than monetary differences. Imagine group of 30 passengers going for a wedding. Not exactly ideal if you have to see a credit card charge for every single person on your invoice is it? Much simpler just being per transaction.

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I've just watched the BBC at lunchtime and thought the 16p they mentioned was an average debit card card not the credit card cost - maybe I got this wrong. I think we should look at those TA'S who charge above and beyond the standard level which seems to be around 1.5% with a view to making extra cash from the client, surely thats wrong!!

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13 minutes ago, cruise chef said:

I've just watched the BBC at lunchtime and thought the 16p they mentioned was an average debit card card not the credit card cost - maybe I got this wrong. I think we should look at those TA'S who charge above and beyond the standard level which seems to be around 1.5% with a view to making extra cash from the client, surely thats wrong!!

My point exactly CC. I'd imagine there are plenty out there that cheat the system.

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From the BBC website

Quote
 

Banks typically charge large retailers between 10p and 20p for each debit card transaction, or 0.6% for credit cards.

http://www.bbc.co.uk/news/business-40648641

So for a bill of £3000 will cost the TA £18 with a credit card or 10p with a debit card. It's not difficult to see why they do not like accepting credit cards.

Brian

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3 hours ago, sinbad10 said:

It has just been on BBC news that banks charge 16p per transaction  for use of credit card and even though cruise TAs have used the excuse that they are just passing on charges this is obviously not true and misleading. If you are paying £3000 for a cruise and being charged £45 for the privilege of using credit card as Bolsover Cruise Club do i.e. 1.5% then it is a fair amount of profit on every transaction that only costs them 16p.

It's a little unfair to quote Bolsover as just about every TA does the same .. not that I agree with the charge but like with any loophole people will use it.

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44 minutes ago, *Dancing Queen* said:

It's a little unfair to quote Bolsover as just about every TA does the same .. not that I agree with the charge but like with any loophole people will use it.

It isn't unfair we are on Bolsover Cruise Club's own forum.

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At what level if they are removing CC  charges for cruises . great news

On this side of the pond, they have never charged us for using our credit cards to pay for a cruise or anything , the merchant absorbs it . Mind you we do not get perks like free parking or large OBC nor can we use our Debit Cards as they are restricted to about $800 a day . On the bright side, how come cruise companies accept your CC for your sea card account and do not charge extra, perhaps those drinks absorb the cost :)

Edited by RobBar

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2 hours ago, Captain Kidd II said:

The charge made by Bolsover is that placed on them by P&O. They have no choice apart from discounting their margins if they did not make the charge.

That is correct for P&O, Cunard and Princess who charge 1.5%. However, I booked a cruise last year through Bolsover with Celebrity on a credit card and there was no charge as Celebrity do not charge.

Brian

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5 hours ago, BrianI said:

That is correct for P&O, Cunard and Princess who charge 1.5%. However, I booked a cruise last year through Bolsover with Celebrity on a credit card and there was no charge as Celebrity do not charge.

Brian

Cunard and Princess including HAL have never charged me for my TA processing my Credit Card but I do live in Canada

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I suppose it depends on what profit margin anyone selling good's or services make as to wether they will add the charges onto to price.

We use our Debit card for most transactions the larger ones we use either Bank transfer (No Cost) or sometime a Credit card if there is no charge, but have paid a small amount to use it ,just for the extra cover it provides.

It has been in the cruise industry quite usual to charge a % for using a CC , pre the cruise lines cutting the commission quite a few agents charged nothing for using a card, if your getting 5% commission half of that could go on CC charges.

In Canada Walmart bad one Debit card from being used as they upped the charges, I think the CC companies have different rates for different dealers the smaller  ones have not much bargaining power as say John Lewis,Our corner shop does have a cash machine but does not take Cc or Debit cards without charging ....Davybe

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On ‎7‎/‎19‎/‎2017 at 11:55 PM, Davybe said:

I suppose it depends on what profit margin anyone selling good's or services make as to wether they will add the charges onto to price.

We use our Debit card for most transactions the larger ones we use either Bank transfer (No Cost) or sometime a Credit card if there is no charge, but have paid a small amount to use it ,just for the extra cover it provides.

It has been in the cruise industry quite usual to charge a % for using a CC , pre the cruise lines cutting the commission quite a few agents charged nothing for using a card, if your getting 5% commission half of that could go on CC charges.

In Canada Walmart bad one Debit card from being used as they upped the charges, I think the CC companies have different rates for different dealers the smaller  ones have not much bargaining power as say John Lewis,Our corner shop does have a cash machine but does not take Cc or Debit cards without charging ....Davybe

I have cruised an flown for many years and used the same TA company for cruises,. never have I been charged extra for using my credit card by the agent or the company . I do live in Canada though where our debit cards cannot be used for transfer amount over about $800 daily though an Interac might work to a person or bank. Regardless I am pleased that this practice will stop in the UK next year  

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10 hours ago, RobBar said:

I have cruised an flown for many years and used the same TA company for cruises,. never have I been charged extra for using my credit card by the agent or the company . I do live in Canada though where our debit cards cannot be used for transfer amount over about $800 daily though an Interac might work to a person or bank. Regardless I am pleased that this practice will stop in the UK next year  

It is common practice in the UK for TAs to charge 1.5%-2.5% average for paying for holidays using a credit card whether it be a cruise or land based holiday.

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On ‎7‎/‎23‎/‎2017 at 5:18 AM, sinbad10 said:

It is common practice in the UK for TAs to charge 1.5%-2.5% average for paying for holidays using a credit card whether it be a cruise or land based holiday.

Yes, I know that from my friends in UK and always was against it. Am pleased this practice is stopping  though in some ways some of you get perks that we do not from the same companies as in parking at terminals. transport, reduced price due to volume sales or repeat customer reduction, as a few

Edited by RobBar

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