Debate to begin on possible credit card charges ban

WITH institutions set to pocket a cool €150 million this year alone from credit cards, the public, including traders, are to be given a chance to argue against a planned ban on extra charges for customers who pay by credit card.

Ireland is second only to Saudi Arabia when it comes to profiting from the use of the flexible friend, according to a report from London-based research company Lafferty.

The main reason for this, researchers say, is the €40 annual stamp duty that is imposed by the Government on all credit cards.

Enterprise Minister Micheál Martin announced the ban on credit card surcharges when preparing the new Consumer Protection Act but when the legislation came into force three months ago, the sections detailing the plan were withheld.

Mr Martin said at the time he was postponing the enactment of the sections to October this year to give retailers time to adapt to the changes but he yesterday announced a public consultation process on the issue, which is likely to delay any ban further.

The postponed section 48 of the act prohibits traders from imposing additional charges on any one method of payment where customers are given a choice of payment options, while section 49 states that where a surcharge is legal, it must be included in the advertised price of the good or service.

Operators most likely to be affected by the legislation include concert promoters, entertainment venues, airlines and other travel companies that regularly impose an additional credit card charge, particularly where business is transacted over the internet.

Mr Martin said yesterday he still intended commencing sections 48 and 49 “later this year” but he was seeking the views of the public, payment card holders, retailers and other interested parties on the planned changes.

“I am interested in hearing the views of all interested parties and I would urge them to submit these by the September 7 deadline,” he said.

“The sole aim introducing these provisions is to protect consumers and I am confident that their impact will be in line with that aim.”

Advertisements explaining the consultation process appear in today’s newspapers and a consultation paper detailing the legislative changes is available on the Department of Enterprise website, www.entemp.ie.