$120 card fee when paying $270 redemption payment...

[greenfish]

Just booking some 4 reward tickets one way to the UK. Got all the way through, payment of $270 required by credit card (which admittedly is pretty good!).

However, when I choose any of the credit card options (and there is no other payment option) I'm slugged with a $120 credit card surcharge - the payment required jumps to $390.

That's a 44% credit card surcharge!

Silly thing is, if that was built into the basic copayment I wouldn't have batted an eyelid (as it is so much cheaper than QF).

Grrr.

 

[smit0847]

Isn't it $7.70 per person?

 

[medhead]

Isn't it $7.70 per person?

Only for domestic, [-]but that has changed to $7 recently[/-]. $30 for international.

 

[N860CR]

I didn't think credit card fees applied for award bookings?

 

[greenfish]

This was a classic award redemption - I was just attempting to pay the (quite reasonable) taxes.

Haven't decided whether I can be bothered negotiating the call centre to see if this is yet another website error.

 

[MartinO]

Can't post the link, but it's on the Velocity Redeem Points page

. A Booking and Service fee will apply when paying by credit card or debit card when the payment amount is $50 or more: $7.70 per person per booking for Virgin Australia domestic flights, $10 per person per booking for Virgin Australia international short haul flights and $30 per person per booking for Virgin Australia international long haul flights and flights operated by partner airlines

 

[greenfish]

Had a bit more of a play. A $30 per ticket credit card fee is levied as soon as the TOTAL taxes exceed $50. As an example I was able to have it request $120 c/c fee for $50.23 charge.

Quite a usurious charge... makes the 1.5% cc surcharge at some shops seem a complete bargain.

Also worth noting that there is no alternative method of payment offered.

 

[AdMEL]

My understanding is that credit card fees have always applied to reward bookings (at least for domestic).

 

[greenfish]

My understanding is that credit card fees have always applied to reward bookings (at least for domestic).

It's been a while since I did a domestic redemption, it used to be that providing you didn't push the slider all the way over, you'd not be charged a CC fee. At $7.70, it isn't that big a deal anyway. It just irritated me that when booking 4 (me and 3 kids), I had a $120 CC fee added with no alternative (no POLi etc) method offered.

To be clear, the reward ticket deal was actually a good one overall - the total taxes including the CC fee were still less than QF - but having it clearly described as a CC fee and appended at the last possible moment at a level which added nearly 50% to the total really irked me. Very very LCC. Ryanair anyone?

 

[Mattg]

Does it give you the option to pay by debit card (lower fee) or BPay (no fees)?

 

[Deleted member 29185]

Very very LCC.

Isn't this entering a very, very high risk area for VA?

Weren't the banks fairly recently forced to backdown on charges which were well and truly over and above the purported reasonable charge? IIRC, the banks were charging extortionate fees for minor indiscretions like charging well above a reasonable, recoverable amount for a "bounced" direct debit. Instead of charging $20 or so, it was determined it should have been ???? ($2?) and hence the banks were actually "taxing" clients for bouncing. Only Gov'ts can tax, therefore it was deemed illegal (or is my memory failing me?). If my memory is correct, then surely this extrapolates to VA also "taxing" people for paying with a CC and to make matters worse, they refuse to allow a client to use any other method. At least the blood-sucking banks allowed you "not" to bounce a debit.

 

[greenfish]

Does it give you the option to pay by debit card (lower fee) or BPay (no fees)?

Not when booking an award. Just Amex / Visa / Master / Diners. All with the same $30 per pax fee, if the TOTAL taxes for all pax are more than $50.

 

[greenfish]

I
Weren't the banks fairly recently forced to backdown on charges which were well and truly over and above the purported reasonable charge?

Yes, I think VA are probably on dangerous ground - they should just hide the fee in with the usual fuel taxes!

 

[greenfish]

All a bit of a moot point now. In the ever shifting sands of VA award availability, the numerous wide open days have all dried up. Checking on Etihad Guest, the non VA codeshare flights still have good availability so I suspect a call to the contact centre is in order.

 

[basso]

Isn't this entering a very, very high risk area for VA? Weren't the banks fairly recently forced to backdown on charges which were well and truly over and above the purported reasonable charge? IIRC, the banks were charging extortionate fees for minor indiscretions like charging well above a reasonable, recoverable amount for a "bounced" direct debit. Instead of charging $20 or so, it was determined it should have been ???? ($2?) and hence the banks were actually "taxing" clients for bouncing. Only Gov'ts can tax, therefore it was deemed illegal (or is my memory failing me?). If my memory is correct, then surely this extrapolates to VA also "taxing" people for paying with a CC and to make matters worse, they refuse to allow a client to use any other method. At least the blood-sucking banks allowed you "not" to bounce a debit.

No. The banks were charging penalties, but are only allowed to recover the amount of their loss, and their penalty fees arguably exceeded their costs. Fees for service are a free for all.

 

[Mattg]

Not when booking an award. Just Amex / Visa / Master / Diners. All with the same $30 per pax fee, if the TOTAL taxes for all pax are more than $50.

Wow, I didn't realise that was the case. I wonder if a $30 credit card fee for a $50 transaction is considered "reasonable" by the RBA/government? I thought this type of thing was supposed to have been outlawed last year!