Airlines and travel companies were threatened with legal action in the UK last Wednesday if they continue to spring last-minute fees on customers for paying by card.
Air, rail and ferry customers often have to click through several pages online before a payment charge is added, the UK Office for Fair Trading (OFT) said.
The watchdog launched a 90-day investigation last March after a super-complaint from independent consumer body Which? highlighted consumer anger about the increasingly widespread use of surcharges.
The OFT singled out the airline sector – where UK customers spent £300 million on surcharges in 2009 – as frequently adding charges for card transactions at the end of a drawn-out purchase process.
The OFT refused to name the worst offenders but pointed out that Easyjet charges £8 (€10) per debit or credit card transaction after customers pass through eight web pages, and Ryanair adds £6 (€6.70) per journey after four pages.
Surcharges for using a credit or debit card are potentially misleading to consumers when it comes as a “surprise”, the OFT said.
The watchdog is discussing surcharging practices with a number of passenger travel companies to secure compliance with consumer protection regulations and has threatened to take enforcement action if necessary.
OFT’s Cavendish Elithorn said: “Consumers find it harder to shop around and find the best deal if they have to invest time and effort in discovering surcharges.”
He added: “We will take enforcement action against any businesses that do not respond to today’s announcement and instead continue to use misleading surcharging practices.”
The OFT said that, in order to provide certainty for consumers and businesses in the longer term, it is asking the UK government to change the law to prohibit surcharging for all debit cards.
In response to the OFT’s findings, Ryanair said it does not “impose” any debit or credit card transaction fees, as customers can use a Mastercard Prepaid without added fees.
It said: “Ryanair is one of the only airlines to provide access to fees information directly from its home page, where it is clearly explained that Ryanair’s avoidable administration fee may be charged to defray the substantial costs associated with our booking system.”
British Consumer Minister Edward Davey said: “We are supporting the adoption of the European Consumer Rights Directive, which should prohibit the use of excessive surcharges across the EU.”