Attention Red Roo - Credit Card Surcharges

[BAM1748]

You'd think a business would be happy to have you're business, certainly many are but airlines think they are often more important than the customer by having stupid surcharges and cc fees and a bunch of other airline specific rules like when you can check in, paying extra for bags etc.

The cc fee is a annoying as you might be buying a ticket 1, 2 or 10 months in advance and the airline get use of you money for that period.

I eagerly await Red Roos answer tomorrow (being a business day)/

Matt

 

[bdruce]

It is illegal in some countries to charge a fee for credit card payment. This is good for the consumer but puts the merchants in a tough position because they have to increase their prices to cover the higher cost of the premium credit cards, which are becoming more prevalent. They have no choice, and they can't "reward" those customers who choose to pay with a "standard" credit card which will cost less for the merchant. In the end I feel that it is unethical to charge a fee that is higher than a pure cost-recovery. If the merchant makes a cent of profit from this fee, it should be deemed as fraudulent. It's a pity that companies can't do the right thing without legislation forcing them to.

 

[Jean Prouvaire]

It is illegal in some countries to charge a fee for credit card payment.

IIRC that used to be the case here until 2003 when the Reserve Bank lifted that requirement.

There's a brief overview of those changes and more recent developments here.

 

[lovestotravel]

So any business charging 3% on AMEX is profiteering. Plain and simple.

Except for those that haven't negotiated new rates

Also restauratns I believe get charged about 3% regardless

 

[markis10]

Also restauratns I believe get charged about 3% regardless

I would suggest that's no longer the case going by Homer's post, given the nature of his small business.

 

[Mr_Orange]

OT, but the 10% Cabcharge add on for credit card payments is far more of a rort!

 

[lovestotravel]

I would suggest that's no longer the case going by Homer's post, given the nature of his small business.

Well I have no idea of his small business so if you are saying he has a restaurant and it's 1.99% then sure it's changed but I am sure the majority of restaurants wouldn't be aware of this and I am also sure Amex won't be bashing on their doors trying to lose 1% wherever they can.

QF and other airlines should charge a % fee for credit cards, to keep it easy make it 1% for all cards

The $7 or whatever QF charges for a $79-$115 domestic fare is close to 10%!

 

[markis10]

Well I have no idea of his small business so if you are saying he has a restaurant and it's 1.99% then sure it's changed but I am sure the majority of restaurants wouldn't be aware of this and I am also sure Amex won't be bashing on their doors trying to lose 1% wherever they can.

I would imagine word would get around the industry pretty quick, especially one so susceptible to costs that's seeing many established places close.

Our restaurant was one of the first Thai restaurants in Sydney. Called Sailors Thai after the original Sailors Home that houses the restaurant, it was started by Australia's "godfather" of Thai food - David Thompson - about 19 years ago.

I believe quite a few AFFers enjoyed Homer's generous hospitality at the end of last year!

 

[lovestotravel]

I would imagine word would get around the industry pretty quick, especially one so susceptible to costs that's seeing many established places close.

Perhaps, yet most of the restaurants I go to still charge 2-3.5% for Amex and/or dont' accept it

 

[JohnK]

A friend has just booked a return to Asia for $1000 but there was a credit card surcharge of $30.

I booked a flight recently and it was ~$788 with a $30 credit card surcharge. So effectively 3.85% surcharge which is a joke.

Do you still avoid the cc fee if you buy say a $50 Qantas Gift Voucher and use that as part payment?

Yes you can but for international bookings the available flights are very limited compared to a multi-city booking for something like BNE-SYD-BKK return.

 

[sweens]

I have what can be termed a small business with fairly low volume of Cr Card sales...my merchant rates are: Visa & M/C .925% - AMEX 1.7%

So yes 3% is very rich!

 

[dajop]

My main pet peeve is the fact that, as a rule, credit cards are the cheapest payment method for retailers to handle. It's safer than cash, and much less work, yet they encourage people to pay with cash (by not incurring a surcharge) rather than penalising them. Cash handling is more expensive overall than credit card.

I am sure for some businesses, the cost of people paying by means other than cash is significant ... Not just a few percent but tens of percentages. ;-). I have seen restaurants in the past with 10pc cc surcharges, I am sure for this very reason. But of course this doesn't apply to big businesses like QF.

 

[MEL_Traveller]

disappointing that it has been a number of days without reply from Qantas.

Maybe this is something we will have to complain directly to the CC provider about. They can take it up with the airlines directly.

 

[puppysparkes]

I recall seeing a response somewhere that advised that they offer a range of fee free alternatives.

Here's an article from last year: Qantas says it makes nothing from credit chard surcharges! | Plane Talking

 

[MEL_Traveller]

I recall seeing a response somewhere that advised that they offer a range of fee free alternatives.

Here's an article from last year: Qantas says it makes nothing from credit chard surcharges! | Plane Talking

the thing is... I read somewhere that while Qantas say they don't make any money off credit card fees... but it seems that some of us are subsidising others.

I read QF takes their world-wide credit card fees and just divides them up between Australians (so we subsidise the rest of the world), and then there are the economy passengers paying $30 at the same rate business class passengers are paying $30. Even though business class may be largely paid by big business and the tickets may be 10x the price.

If that is the case, doesn't seem overly fair?

 

[dajop]

If that is the case, doesn't seem overly fair?

It's simpler and fairer, especially given all the points being earned by those nasty people travelling on red deals being subsidized by those travelling in business .... Oh hang on ....

 

[ftm]

The % charged by Amex to the merchant does vary by industry, so comparing the credit card fees by various places charged isn't overly useful without knowing they are in the same industry.

Any merchant where you pay for a service in advance of receiving the service (ie a lot of travel bookings), the merchant will have a higher fee charged to them by Amex, because Amex carries the risk that if the merchant fails to deliver the service then they have to refund.

It isn't necessarily the case that a merchant charging 3% fee for using Amex is profiteering.

 

[marki]

I booked a flight recently and it was ~$788 with a $30 credit card surcharge. So effectively 3.85% surcharge which is a joke.


Yes you can but for international bookings the available flights are very limited compared to a multi-city booking for something like BNE-SYD-BKK return.

Ouch 3.8% is a lot how do they get away with it?

 

[Mal]

Qantas (AFAIK) have not implemented various fraud prevention measures. (Verified by visa, Safekey by Amex etc).
It seems to me that customers are paying for their slackness. Why can't they actually implement these types of fraud controls at point of purchase....

 

[wandering_fred]

Last night the ABC's program "The Checkout" seriously took Jetstar to task over "drip pricing". The implication being that the ACCC frowns on the practice. And amongst that drip are credit card surcharges - which were mentioned.

As well the reduction in the minimum earn on the QFF program was noted - albeit very quickly.

Might very well be the start of some publicity that forces some changes (... err enhancements) to the business process within the QF group.

Happy wandering

Fred