Why is Ryanair charging in pounds for items on a flight when the menu says euros? CRANE ON THE CASE

Daily Mail​

3 days ago

My family and I make regular trips from Leeds Bradford airport to Málaga-Costa del Sol as we have a holiday home in Spain.
We often fly with Ryanair and sometimes buy food, drinks and duty free items from the catalogue on the plane.
We used to pay in cash, but since 2022 on-board purchases have been card only.
The menu and catalogue on the flights are priced in euros, so we pay with our Spanish bank account which is euro-denominated.
Recently, though, I checked my bank account and realised I was paying more than I thought for these items.
For example, a bottle of water cost €4.10 instead of €3.60 and two cartons of cigarettes cost €118.98 and not €110. What is happening? E.V, Leeds
Helen Crane of This is Money replies: As the school holidays descend and families prepare to jet off to sunnier climes, it's crucial to watch out for cheeky card charges.
It is a rule of thumb that, when abroad, you should opt to pay in the local currency.
That means you get the regular Visa or Mastercard exchange rate. But if you pay in GBP, the merchant can apply an inferior, local exchange rate, which can be much more expensive. This is known as dynamic currency conversion.
But how does it work on a plane, which might fly across several countries?
Airlines usually offer payment in the country the flight originates from as the default. So if you were flying from Malaga to Leeds, you'd expect to be charged in euros, and vice versa in pounds.
You therefore always paid using your Spanish bank account on return flights with Ryanair.
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As an Irish firm, Ryanair lists the prices on its menus in euros. That is fair enough, as long as parched passengers pay for their drinks in euros, too - or willingly face any charges associated with paying in another currency.
But as you have discovered, that isn't always the case.
The reason it seems you have been overcharged for some of your purchases is because you were actually charged in pounds, without your knowledge, on flights from Spain to the UK where the 'local' currency was euros.
You would, for example, pay for a bottle of water that you thought was €3.60, assuming this was in euros - but it would actually be in pounds, and on your bank statement that would become €4.10.
You say the card is handed over to the flight attendant, rather than them bringing the machine to you, so you can't see what is on the screen.
As you weren't paying in the 'local' currency, you were also subject to Ryanair's inferior exchange rate which ramped up the price further. What's worse, your bank would then charge you to convert the GBP payment back to euros.
These are small amounts, but as you travel so regularly it has added up. Since 2022 when you had to stop paying in cash, you think you might have overpaid hundreds, as you regularly buy drinks and snacks for your grandchildren on flights, as well as stocking up on duty free items.
Since you cottoned on to this payments palaver, you have complained to Ryanair, and also asked cabin crew to explain the rules. Neither has been able to give you a straight answer.
You were told in response to your formal complaint that 'By default, the currency for flights to the UK is GBP, not EUR. Euro has to be specifically chosen to be used.'
However, it is not clear whether this is the 'local' currency for the flight, or simply the default currency for the card payment machine.
A cabin crew member told you that, on flights either to or from the UK, the card machine was set to GBP as the default and that cabin crew needed to ask customers what currency they wanted to pay in. In your experience, this has not happened.
When I contacted Ryanair, it said: 'All Ryanair passengers regardless of their destination can choose to pay in GBP, EUR or Polish zloty for inflight purchases.'
Ryanair also disputed the amounts you gave for the purchases, saying that you were charged €3.50 for a £3.26 bottle of water and €100 for £95 of cigarettes. This is different from the bank statements you showed me.
Ryanair continued: 'Prices displayed in our inflight magazine are in EUR, as this is the base currency in Europe. If passengers choose to pay in GBP, the amount and currency is displayed on the payment device prior to payment.
'These passengers purchased items onboard in GBP. GBP payments are then sent to the passenger's bank.
'If a passenger's bank account is a EUR account, the bank will then convert the charge made in GBP back to EUR at their rate.'
I asked exactly how passengers were informed about which currency their payment would be taken in, and what the 'local' currency was.
Was this displayed on the card machine, and if not, should the cabin crew tell the passenger the currency they are paying in or does the passenger have to ask?
Ryanair simply replied: 'At the time of purchase passengers are informed of the amount and currency.'
It also pointed me to page 23 of its inflight magazine, though this does not contain any information about currency other than to say that 'we monitor all prices and exchange rates, and these are subject to change.'
I then asked a lawyer for their view on whether prices could be displayed in euros on a flight, but passengers then charged in GBP as the default currency.
Jennifer Obaseki, founder of London-based Obaseki Solicitors, said: 'Legally, this is permissible - as long as the pricing and currency conversion are made clear and are not misleading.
However, she added that: 'The moment a passenger is charged in a different currency than that advertised, transparency becomes paramount.'
Obaseki said the Consumer Protection from Unfair Trading Regulations of 2008 require retailers to provide 'accurate and complete' pricing information and ensure any currency conversions or added charges are 'clearly communicated prior to sale'.
'In essence, if goods are priced in euros but charged in pounds, the exchange rate and final GBP amount must be disclosed before the transaction is completed,' she said.
As a general rule of thumb, passengers should assume that the 'local' currency on a flight is the one of the country you departed from - but crucially, also ask what currency they are being charged in.
If it isn't the local one, ask to change to that - especially if you have a card which is denominated in the local currency.
If you do like to buy things on flights, it is also worth checking that your payment card will be accepted.
Flyers on various airlines say they have been told they can't use e-money cards such as Revolut and Monzo cards in the air, and some airlines will only accept them if they are used via an Apple or Google wallet.
Tui, for example, does not accept Monzo.
In addition, many airlines don't accept pre-paid cards, such as a Post Office travel money card.
This is because transactions made in the air are processed after the flight lands.
Flyers could pay using empty cards, and in the case of cash cards that can't go overdrawn the airline might never recoup the money.