A Consumer Foundation (
The practice -- prevalent in Taiwan's travel industry -- is used by a variety of small retailers who refuse to pay the transaction fees charged by credit card companies.
The unreasonable surcharges are the 3 to 5 percent price differences stores charge for paying with plastic as opposed to paying by cash for the same purchase.
"People complain that most travel agencies, jewelry stores and mobile phone retailers add on additional charges when customers use credit cards instead of cash," said attorney Joann Su (
Su made the comments at a seminar held by the consumers' foundation yesterday, as representatives of major credit card companies and government officials used the venue to address the public's credit cards concerns.
Marco Ma (
However, according to Lei Li-fen, (
Ma also encouraged consumers to report retailers who tack on the extra fee, saying they will consider suspending merchants' business contracts with Visa and MasterCard International for the next six months.
Such a suspension would also require the approval of the Joint Card Information Center (
Despite the warning from Visa, travel agencies regularly try to save the transaction fees charged by credit card companies and encourage consumers to pay cash.
According to a travel industry pundit, stiff competition makes it hard to turn a buck.
"The profit on travel tickets is merely 2 to 3 percent of the airlines' original prices. After deducting the transaction fees charged by card companies, there's no profit left at all. That's why travel agencies always encourage cash payment," said a high level official requesting anonymity at Taipei Association of Travel Agencies.
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