Is it fair to charge £5.95 for using a credit card to pay for insurance online?
I have just changed my insurance from Churchill to Admiral, via confused.com. But although obtaining a much lower premium, this was increased by £5.95 because, so I was told, my credit card company Barclaycard imposed it in all payment cases? Without agreeing to pay this conditional levy I could not take advantage of the insurance quote. I was assured by the Admiral representative that they gained nothing from this. Is this a recent unavoidable imposition by all credit card companies on all insurance premiums paid by credit card?
Asked on 9 November 2013 by SB, Staines
Answered by
Honest John
It used to be illegal to impose an additional charge for payment by credit card but does not seem to be any more. Even the DVLA imposes a charge for renewal of VED by credit cards. So Admiral can pass on the costs to it of accepting payment by credit card. That said, I have a website (www.slicktitles.com) that uses Barclaycard Payment Acceptance for payment by credit card and the cost to my company is a total of £25 a month. So £5.95 for a single transaction seems excessive to me.
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