Swiss strokes, finally, the credit card fee

ZürichEs seems a bit defiant. While almost all of the Swiss merchant credit card had abolished charges, insists the Airline Swiss as now the only major Swiss company to continue to charge mark-UPS for the payment with the credit card. 1.4 percent of the purchase price will have to pay customers who want to use, for example, Visa or Mastercard. The changes now. From the 28. In March, the airline of the fee, confirmed Kai Schilb, in the case of the Lufthansa group for the payment systems.

"The pressure on the market was increased over the years significantly," says Schilb the decision. In fact, Swiss was attacked from all sides: Not only of Consumer representatives criticised that the Airline moved to continue fees for the card payment – up to 30 Swiss francs, could be the depending on the amount of the ticket price.

Also the map editor denounced the Airline, therefore, and made their customers aware that they can complain to and the fee to the dealer could ask for. The customer made use of their right, but only moderately use. The financial service provider Aduno it is said that there have been complaints, however, this happened only occasionally.

Swiss looks premium still justified to

However, even if Swiss is abolishing the surcharge now, says Schilb: "We are still convinced that it was right to raise the fee." The reason: The fees to be paid by a company to the card service provider, depending on where the card was issued, and, depending on the type of card and card service providers. For a domestic transaction, it amounts to an average of up to 1 percent of the total amount, for maps from Europe for up to 2, and for those outside of Europe, up to 3 percent.

This means: The more international a company is aligned, the higher the costs may be incurred as a result of the payment by card because of the number of customers with foreign cards is correspondingly high. This also means that Swiss customers are subsidising foreign consumers, because their cards cost more. In the supermarket or at the Kiosk, the majority of the transactions is expected to be carried out, however, with domestic cards.

In the case of Swiss, the share of foreign credit cards was "due to the internationality of the airline industry," relatively high, explains Schilb. With the collected credit card fees of 1.4 percent, which was therefore not even cover the costs – after all, but reduce. According to Schilb, the transactions with credit cards worldwide cost the Swiss a year, a medium two-digit million amount. In the case of the Lufthansa group as a whole, a three-digit million amount in the case.

As the number of consumers ' behavior changes with the abolition of credit card fees shows the view to the Northern neighbors. As in Germany, 2018, the Lufthansa-group and eliminating the credit card fees for private customers, reduced the proportion of payments made with alternative methods in the result significantly, according to Schilb. This is clear, because the customers often have an additional Motivation, the cards, since you get miles or bonus points.

Convenient payment methods often provide no additional services. In addition, this leads to innovations in methods of payment are aggravated. Customers should be transparently informed about how big are the costs of a payment method for the retailer.

Therefore, the Airline does away with the fees because it is also not without replacement. Swiss is trying to move the customer to action in any other way, to use other means of payment. Previously experienced by passengers in case of doubt, only after the choice of the payment method to be a Surprise – the extra charge for credit cards is only added in the last step on the flight price. Many of the customers that acts as a kind of penal payment.

it goes the other way: The price will be from the beginning for all clients the same – but in the last step, you will be informed that the ticket can reduce the price if you pay on invoice, Postfinance, credit card or by instant Bank transfer. The discount amount for all the Tickets booked at Short - and medium-haul flights initially, a flat rate of five francs, Swiss. For customers, the new System had the advantage that you can see from the start the maximum final price that the Airline advertises, among other things, also for the flights.

reward acts less as a deterrent

However, Lufthansa-payment-in-chief Kai Schilb believes, however, that more customers will pay with credit card. The deterrent effect of a fee as in the previous model is larger than the incentive of a reward of five francs. For a later date Swiss also believes that it is possible to give, depending on the method of payment more or less discounts. Preferred payment methods by Swiss Bank transfer immediately, by post to Finance, or Pay on account, according to Schilb.

you Mean so that now the Tickets are just more expensive? The correct answer is probably Yes and no. "We can't very well demand for each Ticket five francs more," said Schilb. Of course, it could be that on individual routes where there are "on the market, the appropriate willingness-to-pay", the price will up set – on the other hand, he'll go but maybe also down. This does not have to do primarily with the payment methods, but based on the usual mechanisms of supply and demand.

that means Translated: On routes where Swiss, or Lufthansa group, has a monopoly or the demand is large, could be adjusted the prices. In Europe that would be about flights from Zurich to Brussels or Frankfurt. However, because there are often business travelers are on the road, it should take care of this really.

(Sunday newspaper)

Created: 17.02.2019, 11:27 PM