Chip & pin credit card problems, travel outlook strong for rest of 2011, fly between two cities in two hours through space
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credit cards
Fees to use credit cards in Europe for purchasing airfares are going up and spreading to mainstream airlines. Lufthansa was the latest to announce credit card fees, effective Nov. 1. They join other biggies, British Airlines and Virgin, on the credit-card-fee bandwagon.
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Janice Hough slips us a little-know maneuver that will save hassles when paying for hotels and some restaurants with debit cards. You’ll be surprised at how simple the trick is and how much sense it makes.
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United Airlines has officially backed away from shifting merchant fees associated with processing credit card fees to travel agents. After an aggressive Capitol Hill campaign against United’s effort to squeeze travel agents into accepting the resulting fees by the American Society of Travel Agents (ASTA) and a parallel consumer effort by the Consumer Travel Alliance (CTA) involving the Federal Reserve Board and credit card issuers, the airline decided not to proceed.
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Nobody likes change. It seems that everyone looks at the problems with change rather than the opportunities. Such was the case with taxi drivers in New York City (NYC) when they were ordered to add credit card machines to their cabs two years ago. All they saw was the added five percent card processing fee and another hassle. In the end they were surprised and some cabbies are singing a happy tune on their way to the bank.
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I just returned from a week-long trip through Germany and Switzerland. I used good old American credit cards with the normal magnetic strip on the back. It was never questioned at hotels, train stations or restaurants. However, many travelers are finding that American credit cards are being rejected because they don’t contain smart chips.
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Air Canada has joined in the “cashless” craze, except that the Canadian flagship carrier has gone further. Their version could make travel for some people very difficult indeed.
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In late summer, United Airlines announced a new program where a select number of travel agents would no longer be allowed to use the airline’s merchant account to process ticket purchases. This maneuver was an obvious attempt to save the three to four percent credit card processing fees. The Consumer Travel Alliance saw a more ominous outcome — the possible loss of important consumer protections.
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A popular sign in small restaurants and stores many years ago used to say “In God We Trust,” all others pay cash. These days, however, in the travel industry, suppliers are putting their trust in credit and debit cards. It’s the cash they don’t want.
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