Airlines demand credit cards for in-flight payments

A number of airlines are switching to "cashless cabins" whereby air crew will no longer be able to accept cash as payment for on-board snacks and refreshments.

Continental Airlines, Northwest Airlines and Delta are among those to have made the move that will see crew members carrying hand-held devices for processing credit cards payments, the Age reported.

The newspaper noted that there have not yet been any indications that Australian airlines will introduce cashless cabins, but added that it is a strong possibility.

"It is probably only a matter of time, with Australian carriers tending to follow moves made by their US counterparts," said the paper.

In addition, it was suggested that the cost of in-flight credit card use can be high if card providers charge currency exchange and overseas transaction fees.

The warning may interest regular card users or frequent flyers. According to a recent report by News Limited, Australian bank customers should compare credit cards to avoid paying excessive fees.

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