Ryanair launch pre-paid card to try to retain booking fee
13.09.11
Ryanair has launched a new prepaid card in what appears to be an attempt to retain its credit / debit card booking fee. Passengers will be charged a £6 administration fee unless they use a 'Ryanair Cash Passport Card' to book flights with the budget airline. The move has been criticised by consumer groups who say that customers are growing tired of paying for extras not included in the original price.
The 'Cash Passport' is a prepaid Mastercard that requires customers to load up money in advance, and will be the only way customers can avoid booking charges of £6 per person per flight. The cards cost £6 in the UK, but customers then get a £6 voucher - although this must be used for purchasing Ryanair flights.
Ryanair charges all customers a £6 per flight 'administrative charge' - unless they use a prepaid Mastercard to pay online. At present, customers can use any type of prepaid Mastercard to avoid this extra fee. But from October 4 only customers using the specific Ryanair prepaid card will be exempt.
The airline will make money from the Ryanair cards by selling them via the Ryanair website. It will get a cut if the card is used to buy anything other than Ryanair flights, receive some or all of the £6 fee to 'buy' the card and no doubt get a share of the interest the card issuer will make on balances deposited on the cards.
However, consumer groups have reacted angrily at the news. Martin Lewis of website MoneySavingExpert said: 'Ryanair is sticking up two fingers at every consumer group and regulator with this news. Ryanair must be forced to include the booking fee in its headline price. This is not a voluntary fee.'
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