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Industry could face £150 million hit after surcharging ban

News
Tom Parry
20 July 2017

An outlawing on surcharges on a number of debit and credit card payments could leave the travel industry up to £150 million out of pocket, a financial specialist has cautioned.

Barclays carries out a monthly survey of consumer purchasing

The impending ban, which will be imposed from January 13, will apply to payments for flight and holiday bookings in-store and online and forms part of the second EU Payment Services Directive (PSD2).

As a result, businesses will not be allowed to profit from surcharging but the costs incurred processing card payments will still stand and be passed on to companies, tax consultancy firm RSM said.

The organisation said it believed the change could “impact the bottom line” of travel firms when the new rules come in.