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Motor Vehicles: Excise Duties

Volume 458: debated on Tuesday 13 March 2007

To ask the Secretary of State for Transport what (a) cost and (b) profit components are contained in the convenience charge of £2.50 that the Driver and Vehicle Licensing Agency levies on online credit card payments of vehicle excise duty. (127153)

The £2.50 charge for using the credit card for online re-licensing transactions is calculated to cover the specific full costs of providing the credit card as a payment option and is subject to review on an annual basis. No profit element is built into the charge. The charge covers two distinct types of cost:

Credit Card company costs relating to the charges applied for processing credit card payments;

DVLA operating costs relating to the process of credit card payments, credit card enquiries and the investigation of disputed payments.