Travel agents oppose proposed ban on credit card surcharges

Travel agents are seeking an urgent meeting with Minister for Enterprise and Employment Micheál Martin to voice their opposition to his proposed ban on credit card surcharges.

The Irish Travel Agents Association (ITAA) says the ban could be "the last straw that breaks the camel's back" for many of its members at a time of upheaval and intensifying competition in the travel industry from online rivals.

The association claims the measure is "wrong-headed" and inflationary because it conceals from the consumer the inherently higher costs of paying by credit card.

"Effectively, it will penalise prudent consumers who pay by cash or debit card by ending up subsidising people who choose to go for credit and buying on the never-never," said Simon Nugent, chief executive of the Irish Travel Agents Association.

Travel agents typically charged customers paying by credit card a 1.5 per cent surcharge, he said, representing the cost imposed on them by credit card companies.

"The effect of this measure will be to conceal this relatively unknown fact from all consumers."

Paying by credit card was seven times more expensive than other methods and the ban would make "a huge dent" in travel agents' net margins, Mr Nugent added.

The Minister made the proposal in an amendment during committee stage consideration of the Consumer Protection Bill.

The Bill, which enjoys the broad support of the Opposition, comes before the Dáil tomorrow and is likely to become law within the next few weeks.

In a letter to the Minister, the ITAA claims the ban on surcharges breaches EU regulations and will conceal profiteering by the credit card companies.

"Given the intense competition between travel agents and direct sell travel businesses, this regulation, unless amended, will cause many travel agents to close their doors, with resultant loss of employment and reduction in consumer choice," ITAA president James Malone states.

"It is simply not acceptable that a clause with such important impact on local small businesses can be introduced by surprise at committee stage of a Bill without any prior consultation whatsoever."

Telecommunications and financial ser-vices members of the employers' federation Ibec have also condemned the measure and say it could have the unintended effect of increasing prices.

At a meeting with Mr Martin's official last week, they called for a regulatory impact assessment to be carried out before the ban was introduced.