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Tuesday, September 29, 2009

Credit card payment fees - service at it´s best! Forced to pay for being able to pay.

It is amazing that some companies, who only allow credit card payments, also take a specific credit card payment fee when you pay. Which apparently is not allowed in Norway...

Airlines are a few of these companies who add a surcharge. Why not just add the price to the ticket and avoid customer irritation and playing with the rules? All other costs should be included in the ticket price? Or not...then the single ticket fee may not be as appealing if all costs were included?

Unfortunately we probably have more of this to come short term, when SEPA is enforced, since the sellers costs must become more transparent, of course he then too wishes to push the costs on to the buyer. But the good news is that payment methods such as direct payments willl be used together with or instead of creditcards in the future. Direct payment is the SEPA way, and this payment method is free of charge. The local account-to-account payment method will be demanded more by buyers. :-)

The fee paid to the PSP is not the main cost for the seller it is the the acquirer that usually takes the big part. The acquirer is usually a bank - so the banks get paid by the seller and by you  your VISA/Mastercard yearly fee. As always - the banks win - just like taxes - take before, during and after.
Service at it´s best...again!

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