PSDII: what does it mean for travel brands?

2018 is fast approaching, and with it comes the second EU Payment Services Directive (PSDII) – a new regulation that aims to improve consumer rights and help with the cost of living.


PSDII will ban surcharging in January 2018

PSDII will ban surcharging in January 2018


Back in July, the Government announced that it would be putting an end to “rip-off charges” by banning organisations from adding a fee onto credit and debit card payments, as well as charges for using services like PayPal.

Due to come into force in January 2018, the new regulation will affect organisations in each European Union member state.

It is estimated that consumers in the UK were charged a hefty £473 million to recover the cost of credit card fees in 2010 alone, so as you can imagine, PSDII will have a significant impact on the organisations that it applies to.

Stephen Barclay, the Economic Secretary to the Treasury, said that “these small charges can really add up and this change will mean shoppers across the country have that bit of extra cash to spend on the things that matter to them.”


But what does PSDII mean for travel brands?

Amongst those that PSDII will hit hardest include airlines, travel agencies and tour operators, who are known to charge fees for payments made by credit or debit card.

Most organisations would love to cover the cost of these fees without having to pass them onto the consumer, but such a huge loss of earnings can be detrimental for smaller brands.

In order to bypass this problem, travel sellers are required to update internal processes and even adopt new technology. Having a booking engine that provides the functionality to apply additional fees to bookings will help minimise loss of earnings, as well as save heaps of time from manually updating website offers.

Our Travelflow product is fully equipped to provide you with flexible ways to handle your costs appropriately. Whether you are looking to use mark-up’s, transaction fees or additional charges we have options across all our solutions to ensure travel brands stay in control and breeze through the changes that are to come with PSDII.


Will PSDII affect your travel business? Tweet us @BillianIT or join the conversation using #tech4travel.



Noor Tomlinson on LinkedinNoor Tomlinson on Twitter
Noor Tomlinson
Marketing Executive
Noor joined the fold in 2017 and is responsible for Billian’s day to day marketing activities, which involves dipping her toes in social, e-mail, content and SEO, to name a few. She’s a serial blogger and a brand cheerleader, causing havoc in the office every time Billian gets a mention in the media!