Travel Agent- Paying by Check?
 

I have gotten a quote from a travel agent for a trip. They charge more to pay by credit card than to pay by check (it ends up being about $500 more). I have gotten many good comments about this agency, so I think that they are reputable. Even with the $500 extra their price is better than what I could get on my own or from another agent. But do you think you'd take the chance of paying by check? I know there's more protection to pay by credit card because you can dispute the charge if something happens. I'd love to hear your thoughts!

$500 seems an awful big difference to purchase the same package by CC vs. check.

I've used a TA since 2003 and I've never heard of there being a money difference in paying by check vs. credit card. Did your TA explain why the difference and why it is so significant?

That's a good question. It's about a 4% difference. I have asked the agent and am waiting to hear back!

In case you didn't know it vendors have to pay the credit card company a fee on each credit card purchase they process. Generally this amounts to between 3% and 4% of the amount charged on the credit card. Since you are talking about a 4% difference I suspect the TA is giving you a lower price if you pay by check because they will won't be paying the credit card company the "processing fee" if you don't use the charge card and the TA is "passing on" the savings to you.

It's possible they don't have credit card privileges - not likely but possible.

I rarely use travel agents, but have found in Mexico and Central America, that you frequently can save lots of money by not using credit cards. Many smaller hotels charge 5% more if using a card.

I saved 10% off the price of a tour to the ruins in Belize by paying in cash. Well worth the time it took to walk to the ATM.