Booking flight - credit card - protected?? maybe not

yrret


Joined: 17/08/2010
Posts: 761

Message Posted:
02/12/2011 12:13

Just saw an article on BBC1 Rip of Britain that I certainly never knew, and it may help many to know.



If you book say flights etc on a credit card, I always though we were covered if the carrier went bust. I appears not.

If you book through an agent, you contract is with the agent, if 'they' go bust, you are covered. However as it is then a third party transaction, they have booked the flight for you, you are not covered for problems with the airline.



I, like most I am sure, always though purchases etc were covered, but only if you book direrct with the airline, otherwise you have no redress under Section 75 of the Consumer Credit Act 1974 .



http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm



I am sure Tom at flightholiday.co.uk, a person who's integrity I am sure non of us would question, may also be able to shed light on this, and it is worth bearing in mind more so when choosing your airline than your booking agent.

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
02/12/2011 13:01

Terry - thank you for your vote of confidence. I am often asked by clients, suppliers and competitors why I choose to use the clients c/c directly onto Pegasus and only take my gross profit here as it is more time consuming, harder work, involves more complex documentation for us etc.

Three points

1] That way I know your tickets are safeguarded as they are with the Visa Debit card. (This is for MY peace of mind.)

2] As I always say you would be well advised to have good travel insurance including SAF. Not just rely on your cards.

3] It is commercially very bad for IAH Ltd (flightholiday) as our shown turnover on the balance sheets etc. is far lower than many of our competition although the sales might be of similar volumes which makes trading that much harder when it comes to sourcing suppliers etc. However it does mean that we give YOU our clients the best, honest, safe service that we can.

stickle


Joined: 20/02/2008
Posts: 172

Message Posted:
02/12/2011 13:37

Might be a point to mention that there is protection from Visa Debit Cards which many of the bank employees do not know about. certainly, the issue of debit card protection was news to me.

davedee



Joined: 01/12/2008
Posts: 479

Message Posted:
02/12/2011 13:50

Mess 3 Correct got our money back (Nationwide Visa Debit) when CTA went up the pictures.

blade


Joined: 19/06/2010
Posts: 1286

Message Posted:
02/12/2011 15:19

When an airline goes broke many card companies won't pay out until the company who went broke files for bancruptcy.

This happened to a lot of people with CTA. I was reading about it on the holiday truths forum.

yrret


Joined: 17/08/2010
Posts: 761

Message Posted:
02/12/2011 16:02

Msg #2 - Tom, I wasn't aware that you (IAH/FH) could use the details you take to directly book the flight, but it makes sense that you have the card details for a purchase so of course this is possible, and obviously a good practice.



MSG #3# - stickle, that was also mentioned on the program, and again I thought purchases with a debit card were not covered, but this is not the case as davedee points out too.

If you purchase with a Visa (not sure about the others) debit card, there is a scheme whereby this too is insured, but you must apply within 6 months, and directly to your bank. They said on the program that many bank employees weren't even aware of the scheme.



Msg #5 - blade, I thought you could claim as soon as the goods were not received, i.e. the flight date has passed, it would appear not then?



All handy to know if a purchase fails.

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
02/12/2011 16:10

Terry Msg 6 - Yes that is the way we work and tell every client when we book them.

Re the other points I understand that Maestro may be going the same was as Visa on debit card "charge back". Please note that the credit card rules that we are familiar with are related to UK issued cards to UK based users. This is as it is UK law that is applied so it is possible that cards issued to you when living "abroad" might not have the same cover in place and even that purchases "abroad" might not have identical cover either.

DaleneValorie


Joined: 09/12/2011
Posts: 1

Message Posted:
09/12/2011 10:27

sure Booking flight - credit card - protected while we using securely.........................