Avoid budget airline card charges

We update you on the latest dodges for Ryanair and easyJet card fees.

The worst part of flying frequently is the boredom. Getting off and on trains to the airport, queueing for check-in, queueing for security, sitting in airport lounges - and then similar boredom at the other end. Hence, I was so bored whilst going through security last time that I counted my flights and I've flown 62 times.

I couldn't have done that without budget airlines, nor would relief from boredom have been granted by a premium airline - not even if I'd been given a free alcoholic drink or two.

I've occasionally found premium airlines to be cheaper, such as BA and Lufthansa, so always check all your options. However, in my experience it's usually budget airlines that rip other airlines' prices to shreds and, yes, that's even after all the additional charges.

Today I'm looking at a way to reduce one of those additional charges: the card charges.

The old card trick

VISA debit cards are more often given out by banks and VISA Electron cards are given mostly to youngsters, if at all. There's not a great deal of difference between them that I can see, except that Electron cards are usually associated with bank accounts that don't allow overdrafts.

Accounts that grant Electron cards aren't easy to find or open for the majority of the adult population, because banks want us to go overdrawn. Current accounts available to those over 18 (and sometimes over 16) that allow Electron include this Halifax account. This website claims to have a list of other banks that offer Electron. When adults apply for such accounts, expect banks to try to sell you a different one where they can charge you a load of interest on an overdraft!

Although we have better protection when using a credit card for Internet shopping, VISA Electron cards have been a favourite of many budget airline travellers, as there are no charges with the likes of easyJet.

This was also true of Ryanair, until it recently announced it will charge £10 per passenger on return flights with all VISA Electron transactions, just like it does for other debit cards and for credit cards.

All change, please!

If airliners had conductors, and if they shouted 'All change, please!' that's what they'd be shouting now. Ryanair has changed the one free card it allows to prepaid Mastercards. 'Prepaid' cards allow you to upload money onto them to pay for transactions, much like a currency card.

Ryanair is offering an expensive prepaid Mastercard itself, but I looked through a further 24 pre-paid cards and, in the end, I discovered the Escape prepaid card that won on price. Here are the vital statistics of this card:

Key charges of the Escape prepaid card

Charge	Amount
Card issue (and card replacement) fee	£10*
Monthly fee	£0
Top-up fee	£0 if you pay in cash at Phones 4U stores or make a bank transfer
Purchase transactions	£0**
Dormancy fee	£1 per month after 90 days of no use
To transfer money from the card (e.g. when closing the account)	£10

*Actually it's £9.99, but let's get rid of those annoying 9s.

**But cash machine withdrawals cost money, so stick with your bank card for that.

If you used correctly, this card should cost you just £10 in total. All these charges were correct at the time of writing, but the supplier may be reviewing conditions as we speak due to Ryanair's decision. Always read the small print.

The dormancy fee shouldn't be a problem, because you can make any purchase with it for free every 90 days, even if you don't fly Ryanair in that time. If you don't use your card for a year the account will be closed, which will cost you £10 for them to transfer the money back to you, usually by cheque.

Once again, with this card you don't have the protection you have when using a credit card. However, if you have a complaint you can take it to the powerful Financial Ombudsman, which rules if you've been treated unfairly and awards compensation when necessary.

This card comes in more than one brand. I didn't go through the entire small print again, but I believe the Neon card is the same, for example.

Should Ryanair flyers get it?

You might want to think hard before rushing out and buying one. I don't know if Ryanair will be allowed to get away with this trick for long. If it isn't, then it may be that either VISA Electron cards will again be free or the additional cost will be passed on to everyone through higher prices.

Should we avoid easyJet charges?

Now I have a question for you: is it illegal to deliberately enter a detail incorrectly in an order form when you're buying a product? Clearly it is illegal if it's an insurance form, because there is specific legislation on insurance that puts the onus on us, the buyers, to ensure the insurer knows everything that may increase our risk. However, what about, say, when buying plane tickets?

The reason for the question is that, if you have a VISA debit card then easyJet will charge you to use it. However, if you put in the form that it's a VISA Electron card that you've got then the transaction is still accepted and you're not charged for using a VISA debit card. Right or wrong? Legal or illegal? Cunning or contemptible? Please share your thoughts in the comments box below!

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