Travel agents fighting United's credit card fees

U.S. travel agents are asking Congress to prevent United Airlines from forcing some to pay credit-card processing fees on ticket purchases, saying it may raise costs for travel businesses and millions of customers.

United said in June it was making the change because of transaction expenses that have risen to "several hundred million dollars" annually. United had planned to begin levying the fees last month, and extended the start date by 60 days.

Some agents will have to absorb the costs when customers buy with Visa Inc., MasterCard Inc., American Express Co. and other cards. Ten states including California and New York bar agents from passing along to consumers the card surcharges, which are usually 2 percent to 3.5 percent of the purchase price, said Paul Ruden of the American Society of Travel Agents.

"Because the impact is potentially on millions of American travelers, it seems to us this is a matter of great public interest," Ruden, senior vice president for legal and industry affairs for the Alexandria, Virginia-based organization, said in an interview. "Travel agents in those states would be stuck between the hammer and the anvil."

His group is leading a call for congressional hearings aimed at keeping Elk Grove Township-based UAL Corp.'s United and other airlines from demanding the fees.

The American Society of Travel Agents has about 10,000 members, Ruden said.

Customers buy as much as 60 percent of airline tickets through travel agents, including online sites such as Travelocity.com, Ruden said.

"It may be necessary for some state law to be preempted here," Ruden said.