Card transaction charges targeted by magazine report

Which? magazine has lodged a super complaint with OFT to stamp out high card charges.

Consumer organisation Which? has lodged a super complaint with the Office of Fair Trading to try and stamp out the spiralling "rip off" surcharges levied on debit and credit card transactions.

The latest research by Which? shows these "unjustifiable" charges are increasingly standard practice across a wide range of business sectors – from florists to dentists, dealerships and estate agents.

While the cost to companies for processing a payment by debit card is around 20p, and no more than 2% of the transaction value for a credit card, Which? researchers found dozens of examples of companies charging far higher fees.

Which? chief executive Peter Vicary-Smith said, "Consumers are really fed up with paying excessive card charges. So far, more than 40,000 people have pledged their support for our campaign to bring these to an end. Low-cost airlines are some of the worst offenders, but excessive card surcharges are becoming ever more widespread, with everyone from cinemas and cabs to hotels and even some local authorities getting in on the act."

The OFT said it would consider the issues raised in the super complaint in order to establish whether any element, or combination of elements, is or appears to be significantly harming the interests of consumers. It will publish a response within 90 days.