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Why You Should Use a Credit Card to Book a Holiday
By: Marketwired .
Dec. 12, 2012 01:00 AM
LEEDS, UNITED KINGDOM -- (Marketwire) -- 12/12/12 -- Asda Money explains why holidaymakers might wish to use a credit card to book their holiday.
41 tour operators went bankrupt last year(i) and following the recent collapse of Italian budget airline Wind Jet(ii), Asda Money explains how using a credit card to book your holiday protects your money.
Credit cards are considered one of the safest ways to pay for goods and services both in the UK and abroad.
There are a number of credit card protection benefits when it comes to booking. Unlike debit cards, credit cards offer protection against businesses that go bust. This means that should you book a holiday over GBP 100 on a credit card and the company you are booking with goes into administration, your credit card lender will refund you.
Under the Consumer Credit Act of 1947, all UK credit card companies are required to refund customers for non-provision of services(iii). Ultimately, this makes booking your holiday with a credit card one of the safest ways to do so. There is no legal cover for those booking holidays using a debit card.
A growing number of tour operators are struggling to cope in the current economic climate, forcing them to close. Thousands of holidaymakers are at risk of losing their money by booking with debit cards or other means.
Visa allows debit card holders to be able to apply for a refund under a chargeback system, otherwise there is very little protection for those booking with a debit card.(iv)
All companies offering package holidays must provide some form of protection if an airline or travel company goes bust. Many travel companies are in fact covered by ABTA and ATOL consumer travel associations.
However, it is important to note that if you book a holiday with one company and they offer separate accommodation or car hire by other firms, this is not considered a package holiday. Booking with a credit card offers additional protection.
Credit card holders can make additional savings by switching to a credit card that is best for their individual needs.
For those going on holiday, Asda Money credit card customers can get credit card protection. The card also allows customers to buy holiday money with Asda online, over the phone or in-store without having to pay a penny in fees.
Notes for editors
(iii) Source: Financial Ombudsman Service credit cards - equal liability under section 75 of the Consumer Credit Act 1974 http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm
(iv) Source: BBC, Holidays and flights http://www.bbc.co.uk/watchdog/consumer_advice/latest_travel_emp.shtml
About Asda Money Credit Card
-- 1% cashback on Asda shopping -- 1% cashback at Asda filling stations -- 0.5% cashback at all other shops -- 0% balance transfers for 12 months(i)
Standard Purchases: 14.9% p.a. variable.
Representative APR: 14.9% variable.
Total amount of credit: GBP 1200.
This is for illustrative purposes only and actual total amount of credit may differ.
(i)Balance Transfer Terms and Conditions: Balance Transfer fee of 2.9% (minimum fee GBP 3 per transaction) will be charged in respect of each Balance Transfer. Subject to account status.
Account Terms and Conditions apply. You can Balance Transfer up to 80% of the available credit limit within the first 90 days of account opening. Balance Transfers from existing storecard accounts and loans issued by Creation Financial Services Ltd or Creation Consumer Finance Ltd and credit card accounts issued by Sygma Bank UK are not permitted. Minimum value for Balance Transfer is GBP 50. At the end of the promotional period you will be charged the Standard Rates of Interest in accordance to your Account.
Asda Money is a trading name of Asda Financial Stores Limited. Asda Financial Stores Limited uses a selection of companies to provide its products and services. Please refer to www.ASDA.com/money for details of our product partners and the relevant terms and conditions for each of our products and services.
Subject to status. Applicants must be aged 18 or over and UK resident (including Isle of Man and Channel Islands). The Asda Money Credit Card is issued by Sygma Bank UK, Chadwick House, Blenheim Court, Solihull B91 2AA.
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