Both the IBF and CAI are of the view that surcharging should be abolished completely; or, at the very least, should be much more carefully controlled than is the case at present. They see surcharging as imposing an additional and unfair cost on those consumers who wish to pay by credit or debit card – a cost estimated to be in the millions of euro each year. It also reduces consumer choice as it can act as a disincentive to payment by card.

Statutory Instrument No. 103 of 4th March 1997 (S.I. 103)¹ allows the promoters of concerts and other theatrical events to make a charge additional to the ticket purchase price - as long as such additional charge is advertised or notified to the purchaser in advance. This has given rise to what is generally known as a surcharge or handling fee, which in the main arises on bookings/purchases made by credit card. In addition, many other retailers and service providers that appear to fall outside the scope of S.I. 103 have taken to imposing surcharges.

More recently, banks here are not happy with a change in the scheme rules for MasterCard that specifically allows for surcharging by removing the “no discrimination” rule. This rule, which is still applied by Visa International, traditionally prohibited retailers and service providers from imposing any additional charges - whether termed a service charge, booking fee, administration fee, etc. - for use by customers of their credit cards, where such a charge was not imposed in respect of other forms of payment.

“Banks here are now all the more concerned that surcharges on card payments may become even more widespread. We believe that the only effective solution lies in national legislation to specifically disallow surcharging, because only national legislation can override the (Mastercard) scheme rules”, stated Diarmuid Bradley, IBF President.

CAI Chief Executive, Dermott Jewell, stated: “This move to extract even more money from consumers, for no return, now clearly indicates how skewed and unrealistic this sector has become in its solely profit-driven focus and mission. While the regressive nature of such surcharges will come as a shock to some it is the calculated intention to bleed the customer dry that more readily reflects today’s mindset and which dictates how determinedly we must resist these surcharges and legally outlaw them. ”

IBF and CAI are hoping to enlist the support of the Financial Regulator and other interested parties for a change in the legislation that will more effectively deal with the surcharging issue.

For further information contact Dermott Jewell CEO at (01) 497 8600