Companies no longer allowed to charge excessive credit card fees

[serfty]

I've known how to mostly avoid these fees on Qantas, but sometimes it isn't possible - in which case I have worn the fee on a CC giving 2 or more points per $

 

[medhead]

Aquire discounts really have me in a dilemma. Most recent being do I take the $8 discount and pay the $7 card fee?

 

[opusman]

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!

You're kind of taking what I've said out of context, but whatever.

As I've said before, the RBA are the reason we have credit card surcharging in the first place. There was no law that said they had to allow credit card surcharging, and yet they did. Everything else discussed in this thread flows from that.

Maybe you work for them? If so, you should probably disclose this if you're going to keep defending them.

 

[MEL_Traveller]

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.

I'm not sure about this?

Qantas has claimed that the total credit card fees they receive don't cover their world-wide credit card fees. But under the new rules, does the limit on charges apply per transaction? If that's the case, economy pax may be better off. Premium pax worse off.

But if each transaction can only be charged actual expenses, the 'rest of the world' fees and charges won't be able to be recouped unless they start to levy fees for bookings made outside australia.

 

[trippin_the_rift]

I'm not sure about this?

Qantas has claimed that the total credit card fees they receive don't cover their world-wide credit card fees. But under the new rules, does the limit on charges apply per transaction? If that's the case, economy pax may be better off. Premium pax worse off.

But if each transaction can only be charged actual expenses, the 'rest of the world' fees and charges won't be able to be recouped unless they start to levy fees for bookings made outside australia.

The RBA wording does not say charges are limited to the bank imposed merchant transaction fee and thus leaves the door wide open for companies to exploit (rightfully so IMO)

QF could set-up 'Qantas Billing' and load up expenses into that company which would justify almost any fee charged on bookings since it still wouldn't cover associated costs of accepting credit cards

I'm with medhead in that the new changes will do achieve very little to save consumers$

 

[Pleb Status]

What would be the percentage of QF sales on CC/credit versus cash? The only justification for any CC surcharges at all is that cash customers are 'subsidising' CC customers.

If most purchases are CC/credit, then this justification does not apply and all surcharges should be banned. I cannot recall ever purchasing anything from QF which I have not charged to a CC.

I see this latest set of changes as another stepping stone to the abolition of CC surcharges in the future. Once the interchange fee is below say 0.50% total, businesses can absorb the cost in normal operating expenses (particularly those with pricing power like QF).

 

[Mr_Orange]

I see this latest set of changes as another stepping stone to the abolition of CC surcharges in the future. Once the interchange fee is below say 0.50% total, businesses can absorb the cost in normal operating expenses (particularly those with pricing power like QF).

They should be banned already given that I can and do pay for everything, no matter how small the amount, on credit card. I hardly ever carry cash these days. It's just the way the world is these days. Cheques have died, cash will not die, but its use is waning.

 

[MEL_Traveller]

The RBA wording does not say charges are limited to the bank imposed merchant transaction fee and thus leaves the door wide open for companies to exploit (rightfully so IMO)

QF could set-up 'Qantas Billing' and load up expenses into that company which would justify almost any fee charged on bookings since it still wouldn't cover associated costs of accepting credit cards

I'm with medhead in that the new changes will do achieve very little to save consumers$

Ok, this is way outside any area I normally deal with, but having a quick look at the bill it looks like it might cover single payments?

below is the text from the Bill as passed:

55A Definitions

Inthis Part:

excessive, in relation to a payment surcharge, has the meaninggiven by subsection 55B(2).

infringement notice compliance period has the meaning given bysubsection 55M(1).

listed corporation has the meaning given by section 9 ofthe Corporations Act 2001.

payment surcharge means:
(a) an amount charged, in addition to the price ofgoods or services, for processing payment for the goods or services; or
(b) an amount (however described) charged forusing one payment method rather than another.

Reserve Bank standard means a standard determined under section 18of the Payment Systems (Regulation) Act1998 after the commencement of this definition.

surcharge information notice has the meaning given bysubsection 55C(3).

surcharge participant has the meaning given by subsection 55C(2).

Division 2—Limit on payment surcharges

55B Payment surcharges must not be excessive

(1) A corporation must not, in trade or commerce,charge a payment surcharge that is excessive.

(2) A payment surcharge is excessive if:
(a) the surcharge is for a kind of payment covered by:
(i) a Reserve Bank standard; or
(ii) regulations made for the purposes of this subparagraph;and

(b) the amount of the surcharge exceeds the permitted surcharge referred to in the Reserve Bank standard or the regulations.

(3) Subsection (1) does not apply to a corporation who is exempted from its operation by the regulations.

full link to the bill: Competition and Consumer Amendment (Payment Surcharges) Bill 2015 – Parliament of Australia

Edited - unfortunately the second reading speech doesn't provide a definitive view - it could be open to interpretation that the QF system of recovering 'world-wide' is not banned

 

[moa999]

If most purchases are CC/credit, then this justification does not apply and all surcharges should be banned. I cannot recall ever purchasing anything from QF which I have not charged to a CC.).

I've done plenty of Poli transactions because my limit is about 4% and on cheap Y fares that gets broken

 

[medhead]

Is it possible to pay cash to qantas at all?

 

[TomVexille]

Is it possible to pay cash to qantas at all?

At the ticket desk maybe?

 

[TheInsider]

Is it possible to pay cash to qantas at all?

Sales desks at airports.
Indirectly - Travel Agents of course.

 

[NVRENUF]

Just booked tickets for Perth To Singapore With Qantas,
My self wife and 2 yr old. We got charged $30 per person Credit card fee.

it's probably standard, but I thought it seemed a bit high when the credit card was only used for 1 transaction for the entire booking.
$90 seems crazy. guessing nothing has changed yet since this new law ?

 

[esseeeayeenn]

Just booked tickets for Perth To Singapore With Qantas,
My self wife and 2 yr old. We got charged $30 per person Credit card fee.

it's probably standard, but I thought it seemed a bit high when the credit card was only used for 1 transaction for the entire booking.
$90 seems crazy. guessing nothing has changed yet since this new law ?

Next time buy a voucher and use that towards the fare. You can charge the balance to your card and they will not charge the fee.

 

[NVRENUF]

Nice tip, Thanks

 

[downgraded]

Just bought seats from the UK with QF and no cc fee extras...

 

[NVRENUF]

I wouldn't have minded the fee , if it was only charged once for the booking.
I understand it's $7 domestic and $30 international now. But to charge it per ticket,
and call it a credit card fee, is cough. Considering it was a single transaction.
I am guessing it's just a way to make some money back on the cheaper airfares.

 

[TomVexille]

I wouldn't have minded the fee , if it was only charged once for the booking.
I understand it's $7 domestic and $30 international now. But to charge it per ticket,
and call it a credit card fee, is cough. Considering it was a single transaction.
I am guessing it's just a way to make some money back on the cheaper airfares.

As I understand, they aren't allowed to charge a fee in most other countries, so tickets from (most) overseas destinations have no fee. Therefore the fee charged in Australia is to cover the processing fees worldwide. Do I think it's right, no. Thankfully there is an available workaround to avoid the fee ex-Australia.

 

[JohnK]

They shouldn't be allowed to charge a fee in any country. Once you have chosen the airfare that should be the final price.

Too difficult to implement?

 

[TomVexille]

They shouldn't be allowed to charge a fee in any country. Once you have chosen the airfare that should be the final price.

Too difficult to implement?

Hmmm, you and I agree twice in a month :shock:

As far as I'm concerned, the cost of taking money is part of the cost of doing business and is also tax deductible.