Ryanair imposes new credit card and admin charges

ReenaSewraz
by Lovemoney Staff ReenaSewraz on 29 November 2012  |  Comments 17 comments

Budget airline Ryanair has installed new credit card and admin charges, but says we should blame the OFT.

Ryanair imposes new credit card and admin charges

From tomorrow, low cost airline Ryanair will charge a 2% processing fee on all bookings made by credit card. Those wanting to avoid the added cost will have to pay by debit card or German ELV transfer.

Ryanair also announced passengers will have to pay a £6 admin fee to cover the cost of running its website.

But the admin fee is avoidable if you book using Ryanair’s Cash Passport in Ireland, Germany and Spain until February 1st, February 15th and March 21st 2013 respectively.

The budget airline blames the new charges on having to comply with an Office of Fair Trading (OFT) ruling made earlier in the year.

History

In a statement on Ryanair’s website the company claimed that the 2% fee will be introduced "to comply with the UK Office of Fair Trading’s recent ruling on credit card fees".

Back in July, the OFT ordered airlines to make debit card charges clear and to make fees for using a credit card easy to find.

This was after consumer champions Which? launched a super complaint that forced the body to look into the airline industry, focused on its overcharging and misleading pricing practices.

What the OFT says

Now Ryanair is placing the blame with the OFT for announcing a new processing fee on credit cards.

A spokesperson at the OFT responded to Ryanair’s claims, saying: “We have not made any airline introduce new payment charges, increase their credit card charges, or scrap any discounts they wish to offer.

“We took action to make sure that debit card charges are included in the headline price and credit card charges are transparent and not sprung on shoppers towards the end of the booking process.”

Confused

From the sounds of it Ryanair is a little confused about what the OFT has ordered the company to do.

The demand was transparency and not an increase in cost as Ryanair has phrased the announcement on its website.

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Comments (17)

  • SiGl26
    Love rating 26
    SiGl26 said

    So one presumes the new 'transparent' add-on cost will appear on the home page?? Mind you, Ryanair's presentation of its card charges is no more concealed than any other airline; it's always only apparent when one select one's payment method (but still much more apparent than the (2.5%??) CC charge for buying a car tax-disc online)

    Report on 29 November 2012  |  Love thisLove  0 loves
  • simonlilly
    Love rating 2
    simonlilly said

    easy to avoid this fee - don't travel on Ryanair

    As a commercial pilot, i would never let my family travel on this airline for safety reasons - they are not a safe outfit and its not just the added extras at the airport that can cost you.

    Pilots and crew at Ryanair are scared of the management and worked to be very tired - mistakes happen, its just the public do not hear about them.

    Report on 29 November 2012  |  Love thisLove  2 loves
  • Meduza78
    Love rating 18
    Meduza78 said

    why is it a credit card that some retailers have a trouble with? last month i found out that lidl does not accept credit card, but 1 pound shop next to it does. now i learn that debit card payment is in the price but credit card is charged extra. why is it?

    on top of that: does ryanair charge the customers a fee when they call their center, like they charge for using their website? or is this a detail they forgot to charge for? this is simply a rip-off. i would be ok if they charge a symbolic £1 for the website, but 6 is just too high.

    they should also charge an extra fee for using rainar at all.

    Report on 29 November 2012  |  Love thisLove  0 loves
  • xciv
    Love rating 0
    xciv said

    @Meduza78:

    Not defending them. but.. card processing fees work like this, as a business you have a merchant account (where the money goes when customer pays using a card) and the business pays a fee for this card processing facility.

    * Debit cards are a flat fee (~50p, or much less if you are a big enough retailer with good volume of sales) per transaction regardless of transaction size.

    * Credit cards are a percentage fee (~3% or less, see above on volume) on the size of the transaction.

    This is why the cards types are differentiated in what Ryanair are charging.

    (Also, this is why some retailers do not like people paying by card for small purchases, I mean if you bought a £1 item and the retailer does not have a very good rate with their merchant account then 50% of the sale has gone in processing fee!)

    Report on 29 November 2012  |  Love thisLove  0 loves
  • Meduza78
    Love rating 18
    Meduza78 said

    xciv

    i understand that small shopping is refused to be paid by a CARD at all in some small shops. after your explanation i also understand that credit card is more expensive for the retailer.

    BUT: does lidl have smaller turnover of money in comarison to a pound shop? or does ryanair have that they have to do this?

    i can pay at small co-op branch with a card, even if i buy a bag of fresh bread rolls, costing just above £1.

    what my friend felt fcuked up, when he bought 2 return fly tickets in on transaction, he paid the card fee for EACH. correct me if i got this wrong. the prices of tickets vary, some cost double than others, but one still pays the same fee. and this is unfair.

    Report on 29 November 2012  |  Love thisLove  0 loves
  • Talent
    Love rating 79
    Talent said

    Look, it's simple. If a company doesn't like your method of payment, then either comply or go elsewhere. It's called free trade in a free market. I've flown Ryanair a couple of times and probably will again. I go with whoever suits me at the time.

    Simples.

    Report on 29 November 2012  |  Love thisLove  0 loves
  • MK22
    Love rating 169
    MK22 said

    Flybe also (used to?) charge a transaction fee (well to the Isle of Man), which until recently was a per ticket transaction fee. So buy 4 tickets for your family and that was 4 transaction fees or nearly the cost of a 5th ticket..... Where there is no competition the purchaser always get screwed by the vendor.

    Report on 29 November 2012  |  Love thisLove  0 loves
  • jamiecfc1
    Love rating 42
    jamiecfc1 said

    Haven't Ryanair been sticking on this £6 admin fee (each way) for ages? Pretty sure when I went to France in August I paid 2 x £6 for the privilege of using their (late) service. In regards to the actual flying part Ryanair are no worse than most others, they just seem to go out of their way to get up people's noses by all the add-ons they chuck in. I'd rather know I was paying £100 for something than see it advertised for £50, plus £10 for this, £20 for that... etc etc.

    Report on 29 November 2012  |  Love thisLove  0 loves
  • Hardtruth
    Love rating 69
    Hardtruth said

    @simonlilly on the assumption that your comment is not underpinned by a vested interest this is powerful and relevant. Frankly I would not touch Ryanair again on the basis the experience is utterly loathesome on every level. I have flown with them before on various occasions so the viewpoint is valid.

    However, they bang on about safety not being an issue due to a new fleet but more than any airline (and I have experienced most in all major continents) they do seem to stress the planes heavily as part of minimising ground time and turnaround time. The planes are chucked onto runways, braking is vicious and thrust to rotation time is treated as a race. You are left with a strong impression that they are an accident waiting to happen at some point and you know it will be bad due to their voracious greed for profit at any cost.

    Report on 29 November 2012  |  Love thisLove  0 loves
  • bnick
    Love rating 6
    bnick said

    Strangely, I find myself defending Ryanair. It is true they use all sorts of tricks like making it hard to get out of paying for insurance to try to get a bit more out of you and if your flight is delayed for 5 hours, like mine recently was you are lucky if you get a 5 euro voucher that nearly pays for a sandwich in compensation. You are probably entitled to a refund but life is too short.

    But Ryanair is pretty often the cheapest and have the effect of keeping fares of other airlines down. They have opened up a lot of new possibilities for long weekend trips and manage to keep planes pretty much full. If you really want to have a go at ineffective rip off merchants a much better target would be the airports themselves. Also why is it often more than twice as much to take a journey by rail?

    Report on 30 November 2012  |  Love thisLove  0 loves
  • Hardtruth
    Love rating 69
    Hardtruth said

    bnick "But Ryanair is pretty often the cheapest".

    Two points:

    - Cheap is not necessarily better. Ryanair are a prime example of that.

    - Don't kid yourself they are even "cheapest" when you look at the more important parameter - cost. Price and cost are two very different things.

    Report on 30 November 2012  |  Love thisLove  0 loves
  • oldhenry
    Love rating 343
    oldhenry said

    If you want to land at some airport miles from a city , then you are probably a Ryan air user.

    If youtravel internationally and want some decent service you will use Virgin,KLM etc.

    Report on 30 November 2012  |  Love thisLove  0 loves
  • EastExpert
    Love rating 30
    EastExpert said

    I wonder how many more fees, charges, commissions and other forms of surcharges are necessary so people will stop debasing themselves when using this airline.

    I refuse to be treated like cattle and like a numpty, even if money is not that abundant at moment. I fly British Airways using Avios points, which I buy on Tesco vouchers. It's decent service, direct flight, Heathrow to fly from (less miles to drive to the airport and Purple Parking available), and nobody would charge you for extra cup of juice, using the toilet or buying with debit card.

    Report on 01 December 2012  |  Love thisLove  0 loves
  • GrandOiseau
    Love rating 0
    GrandOiseau said

    Hurrah! Debit card transactions should always be free (subject to a low minimum amount if necessary) because as xciv points out there is only a modest flat fee for the retailer to pay. If they charge it is just being used to lower the headline price of the item or service.

    Ryanair has been the subject of endless debate over the years. For short haul I don't get the gripe most of the time. Sure they are PIA to deal with but they've saved me a shed load of money and/or enabled me to do many trips that wouldn't have otherwise been viable.

    Report on 01 December 2012  |  Love thisLove  0 loves
  • davarn
    Love rating 4
    davarn said

    Apparently the OFT acted following a complaint by Which magazine and have inadvertently caused the exact opposite of what they were trying to achieve.

    Here's loooking forward to an extra €24 per trip plus an additional 2% credit card fee.

    Interfering idiots!

    Report on 01 December 2012  |  Love thisLove  0 loves
  • deanrog
    Love rating 6
    deanrog said

    One of the difficulties about not using Ryanair (an objective which I completely share) is that some of the out-of-the-way airports they use are actually more convenient than the big names. I used to have a house in the Veneto and Treviso (Ryanair's Venice) was lots more convenient than Marco Polo. Another problem about criticising them is that their flights are always virtually full (I've flown BA with 4 passengers on board).

    Report on 02 December 2012  |  Love thisLove  0 loves
  • BAW30s
    Love rating 0
    BAW30s said

    I'm with you, Davarn: with a little initiative before you could save yourself and your friends £6 per person per flight, but now that option is gone. It so often happens now that this kind of interference for our protection makes things worse: supplements now cost much more, alcoholic drinks and fuel will soon cost more, etc, etc! Who will protect us from our protectors?

    Report on 10 December 2012  |  Love thisLove  0 loves

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