CreditCardsAct

United Airlines – demand that travel agents pay credit-card processing fees on ticket purchases would raise costs for businesses and millions of customers and should be stopped by Congress, an industry trade group said.

United said in June it was making the change because of transaction expenses that have risen to “several hundred million dollars” annually. United had planned to begin levying the fees last month, and extended the start date by 60 days.

Some agents will have to absorb the costs when customers buy with Vida Inc., Master Card Inc., American Express Co.  and other cards. Ten states including California and New York bar agents from passing along to consumers the card surcharges, which are usually 2 percent to 3.5 percent of the purchase price, said Paul Ruden of the American Society of Travel Agents.

“Because the impact is potentially on millions of American travelers, it seems to us this is a matter of great public interest,” Ruden, senior vice president for legal and industry affairs for the Alexandria, Virginia-based organization, said in an interview. “Travel agents in those states would be stuck between the hammer and the anvil.”

His group is leading a call for congressional hearings aimed at keeping Chicago-based UAL Corp.’s United and other airlines from demanding the fees.

United has also talked with lawmakers, telling them the change wouldn’t affect many travel agents, said Robin Urbanski, a United spokeswoman.

“During the last few months, we have had conversations with congressional offices and they have been satisfied with our explanation of these facts, including that the change applied to less than 1 percent of our travel agents,” she said.

The American Society of Travel Agents has about 10,000 members, Ruden said in an interview Aug. 28. He said customers buy as much as 60 percent of airline tickets through travel agents, including online sites such as Travelocity.

“It may be necessary for some state law to be pre-empted here,” Ruden said.

By: Angela Greiling Keane