Source: thisismoney
Ryanair is to force customers take out the airline's own pre-paid payment card if they want to avoid card charges that add as much as £48 to the cost of return flight for a family of four.
The low-cost airline yesterday launched the Ryanair Cash Passport and confirmed that it will soon become the only payment method by which passengers can avoid the card charges.
The law requires companies to provide at least one payment method that is free of charge to the customer. Unavoidable payment charges have to be included in the cover price.
Ryanair has drawn the fire of regulators and consumer groups who say it has made it increasingly difficult for customers to avoid charges that currently amount to £6 per person, each way.
Most companies allow free payment by debit card, while applying charges for credit cards.
However, Ryanair previously insisted that customers could only pay for free is they used Visa Electron, a relatively little-used pre-paid card. It later changed the rules so that only a prepaid MasterCard would avoid the charges.
Now the change to Ryanair's own branded card - also administered by MasterCard - will bring accusations that the airline is making customers jump through hoops in order to access free payments that the law intends to be easily available.
The Office of Fair Trading has already launched an investigation into airline card charges following a complaint by the consumer organisation Which?
It is likely to take a dim view of the latest Ryanair move, particularly as it requires customers to spend £6 to take out the Rayanair Cash Passport. Customers then receive £6 of Ryanair vouchers in return, which Ryanair argues makes the card free.
Customers can apply for the card via the Ryanair website. Any purchase from Ryanair will be free of charge, but customers will be charged 50p for they make from anywhere else, following an initial period when all purchases are free. Ryanair takes a cut from the 50p charge.
Stephen McNamara, head of communications for Ryanair, said: 'It is only the media and groups like Which? that complain about these charges. Customers simply realise that there is a way to avoid admin charges and they do it.
'The low-cost airline business model is based on charges that are avoidable if you want to avoid them and the same applies here.'
Mr McNamara said that 'between 20 and 25 per cent' of bookings made with Ryanair were completed using specified pre-paid cards, which he said indicated many passengers were successfully avoiding the charge.
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Source: Ryanair
RYANAIR LAUNCHES BRANDED PREPAID MASTERCARD
UK CUSTOMERS CAN NOW SAVE EVEN MORE ON RYANAIR
Ryanair, the world’s favourite airline, today (12th Sept) announced that it will introduce the‘Ryanair Cash Passport’, a MasterCard prepaid card managed by Access Prepaid Worldwide, in the UK,from 4th October 2011. Ryanair’s £6 admin fee will not apply to UK bookings completed withRyanair Cash Passport from 4th October onward. All UK bookings made with any other UK MasterCard prepaid card will attract Ryanair’s £6 admin fee from 1st November 2011 onwards.
The Ryanair Cash Passport will deliver the following benefits for cardholders:
· The card purchase fee of £6 will be reimbursed to Ryanair passengers since each cardholder will receive a £6 Ryanair travel voucher. There will be no admin fees on any Ryanair bookings.
· No transaction fees will be levied on cardholders for any payments made on the Ryanair.com website.
· As a special introductory offer for all Ryanair cardholders, there will be no transaction fees on any UK purchases until 31st March 2012.
· The Ryanair Cash Passport offers a convenient and secure way to carry money abroad, make purchases and make ATM withdrawals.
Just like a debit card, the Ryanair Cash Passport can also be used for ATM withdrawals, online and high-street purchases at more than 32 million locations worldwide (that display the Mastercard Acceptance Mark). The Ryanair Cash Passport will be rolled out in other European countries in the coming months.
Ryanair’s Stephen McNamara said:
“Only Ryanair delivers the lowest airfares and no fuel surcharges guaranteed. Now all UK passengers can access even more great savings with the ‘Ryanair Cash Passport’, which is available to UK passengers directly from Ryanair.com.
Ryanair’s £6 admin fee will not apply to any bookings made with ‘Ryanair Cash Passport’ and there are no transaction charges for using the card at UK merchants until 31st March 2012, so we recommend that UK passengers make the switch to ‘Ryanair Cash Passport’ as soon as possible to take advantage of the no fee offer.”
Access Prepaid Worldwide’s, Debra Janssen said:
“We are delighted to be working with Ryanair to develop this exciting ‘Ryanair Cash Passport’ prepaid product for their UK passengers, allowing them to ensure they are using a trusted and approved product that will deliver real savings every time they purchase a Ryanair flight.