Jul 01 2009

United Airlines might pass credit card fees to travel agents

This from MSNBC:

United Airlines has caused an uproar among travel agents with plans to force them to the pay credit-card fees when their customers buy tickets with plastic.

The agents say it’s an unfair move by United to shift a cost of its business on to their backs. They add that if other airlines copy United’s move, it will end up costing consumers because agents will pass along the fee.

In the notice, a United vice president told the agencies to report the sale to the airline as a cash transaction. He warned that agencies that try to assign the credit-card processing fee to United’s account would be dinged $75 per ticket.

Agents also said consumers wouldn’t be able to get their credit card company to resolve a dispute with United because the card transaction would be through the agent instead.

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Here is the key sentence…Consumers wouldn’t be able to get their credit card company to resolve a dispute with United.

Issue with the travel? Call the credit card company. Oh, they say, this charge is from XYZ travel, you will need to call them. You call XZY travel, and they tell you to call United. Perfect circle jerk for consumers. You’re gonna love that customer service.

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