What is happening?

Singapore Airlines (SIA) is introducing a 1.3 percent credit card service fee.

The charge is incurred when booking its new lower cost Economy Lite tickets issued in Singapore.

This change will kick in on Jan 20, 2018.

However, the fee will be capped at a maximum charge of S$50 per passenger.

In other words, the S$50 cap will be triggered if the all-inclusive fare is more than S$3,846.

Why are Singaporeans unhappy?

The fee is new to flights departing from Singapore.

And the new lower cost Economy Lite tickets were supposed to be more affordable. Adding in credit card fees only make tickets pricier.

But this latest credit card fee is not new.

SIA has implemented credit card service fees for flights departing from Australia, Belgium, Netherlands, New Zealand and United Kingdom. The fees vary for each country.

Any other reasons customers are unhappy?

Charging a credit card fee is a violation of the service agreement that exists between card issuers like Visa/ Mastercard and the merchant.

Payment companies such as Visa tried to clamp down on credit card surcharges in 2013 by forming a 20-man team to conduct spot checks on merchants.

Merchants defended the surcharges as necessary because the banks, in turn, charge them about 3 percent for each transaction.

But these errant merchants were small-time businesses that eventually got warned by their respective banks.

Ultimately, this credit card fee issue is a passing on of costs to consumers.

How is SIA rationalising this fee?

SIA said the fee is meant to cover "costs relating to the acceptance of credit cards" in certain countries.

The new fee will not affect passengers who use their KrisFlyer miles to book tickets and their credit cards to pay for any associated taxes and other charges.

The credit card fee also does not apply to added extras such as preferred seat selection or excess baggage.

Why Jan. 20, 2018?

On Jan. 20, SIA and SilkAir will restructure their fare types.

SIA will restructure its current economy class categories to Lite, Standard and Flexi.

Prices of tickets are expected to be slightly cheaper.

What are the SIA credit card fees like in other countries?

New Zealand: Credit card fee of 1.7 percent for each ticket (Highest percentage)

United Kingdom: Credit card fee of 1 percent for each ticket (Lowest percentage)

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Do other airlines charge credit card fees?

Yes.

Emirates charges credit card fees for countries in Europe, New Zealand and Australia.

Air France charges a flat rate of S$20.

How can I avoid incurring the credit card fee?

There are no credit card fees for payment through debit cards or PayPal.

Or you can try booking via online travel agents, assuming you can find tickets priced the same as on SIA's website.