Consumer watchdog group issues call to arms against card surcharges

Consumer advocates Which? recently announced it would file a super complaint - one against an entire industry sector - to the government's Office of Fair Trading. The advocacy group alleges excessive surcharges were levied on consumers who pay for goods and services with debit or credit cards.

Companies say, according to Which?, that payment service providers charge them for transaction processing, which is why additional fees are imposed for credit or debit card payments. However, the group argues, these charges are measured in pence, rather than in the pounds many firms hand out.

Which? asserts some of the most egregious offenders are low-cost airlines, which have been known to hit customers with multiple surcharges on a single credit card transaction. The group claims a survey it commissioned found 62 percent of respondents saying that surcharges made a significant difference to advertised prices.

The controversy is similar in some respects to one taking place in the U.S., where Congressional hearings continue over a prospective rule imposing limits on so-called "swipe" fees for debit cards.