Citing "excessive charges levied by American Express," Ryanair today announced that effective June 30 it no longer will accept the card for payment. "These charges are substantially higher than those of the other major credit card issuers," the European low-cost carrier stated, adding that it will continue accepting all other major charge cards.
"Customers want the choice to use their cards to earn cash back or Membership Rewards points, and Ryanair has now taken this choice away from them," an Amex spokesperson said. "We think Ryanair should let their customers decide which method of payment they use and not restrict their options. We hope Ryanair will reconsider its decision."
Ryanair is the latest carrier to take action on payment costs, following Qantas' decision as of April to add a 1 percent surcharge for all charge card transactions in Australia
(BTN, March 10). British Airways, which in June stopped absorbing credit card merchant fees on U.K. corporate net fares, is in the midst of a legal battle with American Express in the U.S. District Court for the Southern District of New York.
Although Ryanair's usage by corporate accounts pales in comparison to BA, its limited presence in traditional distribution channels means corporate buyers rely on a payment system to track spending on the fast-growing Irish carrier. For corporate buyers, Amex remains the dominant card provider.
Cyndi Perper, global commodity manager for U.K.-based Invensys, said that although her company does not book a significant amount of fares on Ryanair, "when travelers use low-cost carriers, we need that spend to come through on the Amex card."