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Credit card VED will carry weighty charge
Page 16
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PLANS FOR vehicle excise duty to be paid for by credit card have been attacked by operators because it could cost them up to £40 for every transaction.
The Driver and Vehicle Licensing Agency consulted the road transport industry on the issue of credit card payments alongside existing methods such as cash, cheques and postal orders.
But the DVLA expects its customers to pay the charge levied by the credit card companies.
One option currently being considered is a sliding scale, under which an operator paying £1,601 or more in VED will have to stump up an additional £.40 for the credit card company.
Peter Lamer, MD for Th urrockbased Suckling Transport. says: "Our view was it just wouldn't be used by anyone.
"With our company, how big would our credit card need to be? We have 100 vehicles; I would need a £100,000-200,000 limit on my card! They can change what they like — it's not for us."
The Freight Transport Association describes the plans as "nonsense" and says the cost could run to four figures for some companies.
"No companies use credit cards to pay VED," says a spokesman. "They strongly opposed the principle of a supplementary credit card fee, believing the cost should be borne by the DVLA."
But a DVLA spokeswoman defends the plans: "Of the responses received [from the consultation] only two registered their disagreement with the implementation of a convenience charge.
"The DVLA is unable to fund this charge, so in order to facilitate the introduction of credit card payments,in response to customer demand, the fee must also he passed on to the customer."