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How tourist pay very high Credit Card Fees in Denmark


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Sunday, 10 July 2011
Tourists spend a lot of money in Denmark. But they also pay exorbitant fees when they swipe their payment via cards.

Danish media reports hold that in shops, hotels and restaurants are currently paying up to 3.75 percent fees for receiving payments with a foreign card. The bills are passed directly by those companies to the foreign tourists and business travellers.

In 2009 alone, the fee rose to about Dkr600 million, assesses the European Commissioner for Internal Market Michel Barnier in a letter to the Danish Consumer Council, reports Danish daily Jyllands-Posten.

“To give an idea of the extent of the problem, in 2009 over Dkr19 million in transactions with cards issues in foreign countries used in Denmark was carried out. Roughly, the estimated fees in connection with the payments was up to €80 million,” says Michel Barnier, according to Jyllands-Posten.

Nets, the former Banks Payment Services in Denmark which treat these payments and make the fees will not comment on the amount.
Horesta, which is the hospitality industry association, is surprised by the amount but maintains that the amount paid by foreign consumers reflects the report.

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Unlike Denmark, which allows the fee bill to be passed on to tourists, 18 EU countries, among them Sweden, have banned the method. It is not good for business and it could be a strong tool to scare tourists away. A country like Sweden knows exactly the importance of tourist to its bottom line.

From 1st Oct, a new Danish fee payment policy will come into force. The new fees policy is prompted by an EU directive and is expected to reduce the bill on foreign tourists.  Despite that, according to Jyllands-Posten, Nets which manages the Danish card payment insist that the fees will remain above 2 percent.
By Scancomark.se Team


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