Companies no longer allowed to charge excessive credit card fees

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AndyGoodyear

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New legislation passed today (effective July 1st) mean that companies can no longer charge outrageous credit card fees and can only pass on the actual transaction cost. The article below mentions Qantas and the $7 surcharge, stating that the actual cost incurred by Qantas for a cheap flight is closer to $1.56. I wonder if the base fares or fuel surcharge will be enhanced to make up for it.

Excessive card surcharges banned as Senate passes new legislation
 
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Really looking forward to AJs press conference tomorow where he offers a mea culpa for the years of gouging customers. What a low-life.
 
Really looking forward to AJs press conference tomorow where he offers a mea culpa for the years of gouging customers. What a low-life.

More like, "Beginning July 1, Qantas will introduce an online booking fee".

I don't see the changes benefiting the larger consumer base in any way. There are ways around this and RBA clearly doesn't *really* care - otherwise they would ban merchants from being allowed to charge any type of additional expense. We've had more than 10 years of widespread abuse of the CC surcharge BS and people are happy to pay the fee - proving there's scope to re-invent the charge under a new name.
 
About the only thing it might affect is Cabcharge. The airlines will just get around it by calling it a booking fee.

Nothing the RBA has done relating to credit cards has been good for consumers, I don't see why this should be any different.
 
More like, "Beginning July 1, Qantas will introduce an online booking fee".
...
Such a fee must be included in the total price of the initial fare quote or any advertisement of a fare.

Also, I have been led to believe that the method of payment cannot vary the nett price paid - this is based on the total price being advertised up front - such fees can't be added later. (Caveat - I have not checked this second part, so may not be completely correct).
 
More like, "Beginning July 1, Qantas will introduce an online booking fee".

I don't see the changes benefiting the larger consumer base in any way. There are ways around this and RBA clearly doesn't *really* care - otherwise they would ban merchants from being allowed to charge any type of additional expense. We've had more than 10 years of widespread abuse of the CC surcharge BS and people are happy to pay the fee - proving there's scope to re-invent the charge under a new name.

Yes, but frequent flyers would notice changes in base fares and other fees and likely to call Qantas out on it.

It is a step in the right direction.
 
Nothing the RBA has done relating to credit cards has been good for consumers, I don't see why this should be any different.
I think you are getting confused here, RBA is just the regulator, its the parliament who enact the laws and have changed the law in this instance.
 
I think you are getting confused here, RBA is just the regulator, its the parliament who enact the laws and have changed the law in this instance.

"... however the ban will work in tandem with Reserve Bank of Australia Payments System Board standards that will set the permitted surcharge ..."
 
No matter what the RBA does, someone still has to pay for the charges one way or another, with whatever names they are given. A better way would be where all these charges are included in the advertised price. If they want to charge less for other payment methods, they can advertise a discount for it.
 
You mean I will need to pay more than $30 for putting my $12,000 First Class fare on my Amex Centurion.

How unfair!


(I remain dubious about this actually changing much)
 
You mean I will need to pay more than $30 for putting my $12,000 First Class fare on my Amex Centurion.

How unfair!


(I remain dubious about this actually changing much)

Well if they were to actually pass on the cost of processing a $12k payment it would be well over $30.
 
As it's been said before, it's not just the transaction fees they are passing on (from what they say). It's the system fees, fraud costs, banking fees, international forex fees.
 
This has the potential to be a good starting point. Something tells me the airlines will find a way around the new rules. And by that I don't mean including the booking fee in the base airfare.
 
This has the potential to be a good starting point. Something tells me the airlines will find a way around the new rules. And by that I don't mean including the booking fee in the base airfare.

Closing a revenue stream means the smart people go into creative mode trying to dream up a newer bigger and better revenue stream
I can think of a few that would 100% bring in new dollars but I find it hard to believe airlines and other businesses will roll over and cut the charges without anything to replace it
 
Closing a revenue stream means the smart people go into creative mode trying to dream up a newer bigger and better revenue stream
I can think of a few that would 100% bring in new dollars but I find it hard to believe airlines and other businesses will roll over and cut the charges without anything to replace it
My guess is they'll simply incorporate it back into the fare so those paying with non credit card methods will end up paying the extra as well.
 
My guess is they'll simply incorporate it back into the fare so those paying with non credit card methods will end up paying the extra as well.

I think this is better than a guess. I'd regard it as reality.
 
My guess is they'll simply incorporate it back into the fare so those paying with non credit card methods will end up paying the extra as well.

That's why we have competition! Although the principle rarely seems to work when it comes to Qantas. People will fly them regardless.
 
"... however the ban will work in tandem with Reserve Bank of Australia Payments System Board standards that will set the permitted surcharge ..."

That's the thing about being a regulator, you need to regulate the laws. It does not change the fact it's the government that sets the.laws, not the regulator!

And blaming someone for just actually doing their job seems frankly just a bit weird, would you rather they didn't do this. Actually I know, in fact you would but most of us, I suspect would think that is somewhat unprofessional. Imagine if the police applied this principle!
 
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You mean I will need to pay more than $30 for putting my $12,000 First Class fare on my Amex Centurion.

How unfair!


(I remain dubious about this actually changing much)

This is exactly why nothing will change for airlines from these rules. Qantas have always maintained that the fees they collect are less than the cost of accepting payments. Therefore it's not excessive, and the small airfare buyers will continue to subsidise the large airfare buyers.
 
A savvy AFFer should know exactly how to avoid the CC fee on an ex-AU booking. My problem is, I often forget to do it!
 
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