SWISS to revise policy for credit card transactions

[sn26567]

In step with a general trend within the travel industry SWISS will introduce an Optional Payment Charge (OPC) across all distribution channels for payments made with credit card, effective November 2011. Customers will continue to have the option of selecting alternative forms of payment for which no charge applies.

As of 2 November 2011, the Optional Payment Charge (OPC) will apply in all SWISS sales channels to payment made by credit card. The Optional Payment Charge will apply to tickets for travel commencing in Switzerland and the amount charged will vary according to the region in which the destination lies. The payment charge will be CHF 6 per ticket for flights within Switzerland, CHF 11 for flights within Europe and CHF 22 for flights outside Europe.

By introducing the OPC, SWISS is passing on to the user the costs that the company gets charged in connection with credit card transactions. Credit card holders enjoy benefits that extend beyond the ability to make secure non-cash payment. Depending on the card product, such benefits include an extended deadline for settlement of payment and/or the provision of insurance services. Recent years have seen a rise in the related costs, which SWISS has hitherto borne. The introduction of the Optional Payment Charge represents a distribution of the costs on a user-pay basis.

SWISS customers will continue to have a choice of payment formats to choose from for which no charge applies, such as Maestro card, Postcard or in cash.

With this restructuring, SWISS is keeping abreast of a general trend in the airline industry. A number of airlines and tour operators already administer a charge for payments made by credit card. The Lufthansa Group partner airlines (Lufthansa, Austrian Airlines, bmi and Brussels Airlines) will accompany SWISS in simultaneously introducing the OPC.

Swiss International Air Lines Ltd. Corporate Communications 3/07/2011

[speedbird1]

If I remember correctly Brussels Airlines have been charging for credit cards for a while now. I think Bancontact is free of charge, just checking a past booking I had my AmEx card was debited an extra 15 euros for a 2 pax ticket, of course I'm sure Brussels processed the 2 tickets separately:)

Cheers,
Speedy

[sn26567]

Yes, indeed, SN has introduced a credit card fee a couple of years ago. This fee can be avoided with the Maestro card, the international equivalent of Bancontact/Mr Cash.

[earthman]

Um, so how do you pay with Maestro on the internet?

[speedbird1]

Hi earthman,

http://www.brusselsairlines.com/com/hel ... se_en.html

Cheers,
Speedy

[sn26567]

LH and bmi have now also confirmed the €7.50 credit card fee (£4.50 in the UK for bmi).

With regard to SN, the fee was €5.00 and applicable only for Internet bookings. The new higher fee will now also apply to bookings through travel agents, which were exempt until now.

[earthman]

So apparently you need some 12-digit maestro card number to use it on the internet, and Dutch banks generally do not provide this yet. However I can see in the above link that there is an iDEAL payment option for Dutch customers, as an alternative.

[sn26567]

Lufthansa credit card fee could damage buyer relations

The introduction of credit card fees by Lufthansa has been met with contempt by the Global Business Travel Association (GBTA). The association believes the new fees will cause confusion, increase cost and reduce transparency.

All the airlines within the Lufthansa Group, including Bussels Airlines, bmi and Swiss, will introduce the charge.

The GBTA raised its concerns over the new fees at an advocacy group meeting attended by senior buyers from the European business travel community. The GBTA said there were concerns over where the charge will be displayed during the booking process so bookers understand the total trip cost at the point of sale.

A Lufthansa spokesman responded to the GBTA comments saying the airline group is "only following what most other European carriers already have in place. Transparency is certainly important to us and we will make sure that consumers know about any charges from the beginning".

"We will continue to offer free of charge payment options for online purchases with PayPal."

Source: ABTN

Personal note: Paypal accounts can be refilled free of charge with credit cards, thus circumventing the charge for credit cards!