Its complaint claimed that the cost of handling a debit card was no more than 20p per transaction and that retailers such as supermarkets and department stores absorbed the cost without question.
Which? also said that the cost of a credit card was about 2 per cent of the transaction. It said any charges levied by travel companies, cinemas and even Government agencies such as the DVLA and HM Revenue and Customs should reflect that cost.
The OFT has mostly agreed with Which? and called for an immediate end to debit card charges. It said it was already in talks with ferry, rail and air companies and would take to court any company that failed to fall into line. Cinema, theatre and other companies will also have to follow suit.
The OFT said it also wanted the Government to pass legislation to outlaw debit card charges, so that in future there was no ambiguity about the issue.
However, it said credit card charges could continue, but only if they were made far clearer to customers and stated immediately below the headline price or "one click away" on a web page. "We don't want people find out about the charge after they have spent ages filling in their passport number and luggage details," said an OFT spokesman.
Prashant Vaze, head of fair markets at Consumer Focus, the government watchdog, said: "This is a victory for common sense. The OFT has confirmed what we all suspected – that online firms have been pulling the wool over their customers' eyes.
"Customers want traders to be honest with them about costs from the start and not face hidden charges added at the end."
Nick Trend, the Telegraph's travel expert, said: "For years, the Telegraph has been highlighting the way that travel companies, and especially the no-frills airlines, have been inflating fares by adding ever-higher charges to process payments by credit or debit card.
"These charges bear no relation to the actual cost of handling the payments, and have been part of an apparent strategy to confuse consumers, masking the real cost of the ticket, and so making it harder for them to compare prices. The move by the OFT is a long-overdue reform which needs to be implemented as soon as possible. "
Which? called on companies to start scrapping their debit card fees with immediate effect, pointing out that one company, Monarch Airlines, had already done so.
Peter Vicary-Smith, chief executive of Which?, said: "Businesses can start to be upfront and fair over card charges today – there's no point waiting until the OFT forces action. Industry shouldn't drag its feet over this."
Article Source KBG Test Blog (http://rc.kbg.me)
