Travel agents now refuse credit cards
The Department of Trade & Industry (DTI) has reissued a warning against the tacking-on of additional charges to credit card purchases. The reason for DTI’s move is that, many stores — especially small retailers — pass on the 3-5% charge that credit card companies levy on merchants. According to our laws, this is illegal.)
However, this has resulted in a number of establishments refusing to accept credit card payments. Especially travel agencies. Who can blame them? Imagine, travel agents get only about 1.5% commission per domestic plane ticket. That’s why they pass on the bank’s charges to the customer — if they didn’t, they’d be on the losing end!
But the culprit here isn’t DTI; they’re just doing their job, and admirably so.
It is the credit card companies and their high merchant charges that will be culpable should this situation result in a decline in tourism income. Many, many visitors to Davao (businessmen and tourists) use credit cards because they’re convenient and safer than lugging cash around. But if travel agencies won’t accept credit cards anymore, this might seriously discourage further spending.
Speaking of which, this might be of interest to those who send money to their loved ones in the Philippines: instant Internet remittances using credit cards. Check it out!
May 10th, 2007 at 4:36 pm
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Thats a sad fact,Its the 21st century already,how can we remain
competitive with our asian neighbors
especially when it comes to tourism,
if we dont have laws and policies when it comes to use of credit cards.
I just been home,and I was surprised
to know that lots of merchants,shop
owners are still ignorant when it comes to creditcards.Most wont accept it,if they do,they charge 7-10% of the actual purchase,and they expect us to compete with our neighbors?Go to Hongkong,or Singapore
they’re not doing that.Our system sucks!