Credit Card Surcharge on Reward Bookings

[ATreeFiddy]

Hi VFF,

Made a reward booking last week and noticed for the first time that if you go for Points + Pay there is now a credit card surcharge on the cash component. Playing with the figures this seems to be for any amount greater than $50. While I don't really have a problem with that, there is no option for a no-fee payment on these bookings, eg POLI.

Is there an intention to introduce POLI as a payment option on these bookings?

 

[lovestotravel]

Read on the T&C's today that for less than $50 there is no credit card surcharge which is great news!

No idea about POLI though

 

[ATreeFiddy]

Read on the T&C's today that for less than $50 there is no credit card surcharge which is great news!

No idea about POLI though

Yes and no in the case of reward bookings, which I guess is the point I'm getting at. I haven't been charged a surcharge on these before for any amount (though its generally less than $100 so YMMV). If you're only offering one form of payment (credit card) and then charging to use that, it's a bit rich IMO.

 

[anat0l]

I also found this out. Mine was a bit dubious - I was enquiring about cancelling a reward flight. This could only be done over the phone in my case. The cancellation cost was $60, which is payable upon processing the cancellation. Since this is over $50, it also attracts the $30 credit card surcharge since I was to use a credit card to pay the cancellation fee. I was told I had to thus pay $90 to cancel my reward booking.

 

[lovestotravel]

I also found this out. Mine was a bit dubious - I was enquiring about cancelling a reward flight. This could only be done over the phone in my case. The cancellation cost was $60, which is payable upon processing the cancellation. Since this is over $50, it also attracts the $30 credit card surcharge since I was to use a credit card to pay the cancellation fee. I was told I had to thus pay $90 to cancel my reward booking.

Oh wow that is pathetic!!!!

I would have disputing that, as the cancellation fee is clearly listed as $60 not $90

 

[civinod]

That is just fraud.

I would be arguing about that one.

Typical of penny pinching big companies. Imagine a small business doing that. I don't think so. We value our customers

 

[anat0l]

Oh wow that is pathetic!!!!

I would have disputing that, as the cancellation fee is clearly listed as $60 not $90

That's right. The fee is $60. If you happened to have to pay over $50 with a credit card, you will entail the credit card surcharge. Similarly on making a reward booking, if your auxiliaries add up to greater than $50, you will incur the surcharge.

It's probably a bit much that they insist on a surcharge for charges greater than $50 in the first place when it relates to change or cancellation fees (or fare differences), especially if they have collected a surcharge when the booking was originally made. I can't remember what Qantas does in the same situation, although I do know (unless it has changed from my previous experience) that Qantas usually uses any credits resulting from a change against fees so you only pay the difference. For example, if I had a booking which I paid $120 in fees that I now wanted to cancel, say the cancellation fee was $50 then with Qantas (in my experience, it may have changed) the $50 would be taken off the $120, leaving $70 which would be refunded to the original form of payment. With Virgin, the fee is charged separately; in this situation (ignore the credit card surcharge for now) you provide a credit card to pay the $50 cancellation fee, whereupon your booking is cancelled and $120 will later be refunded to the original form of payment.

Anyway, that's veering off topic a bit. In any case, the OP does have a point, but several carriers are quite guilty of the same practice I'm afraid.

 

[hummel]

I also found this out. Mine was a bit dubious - I was enquiring about cancelling a reward flight. This could only be done over the phone in my case. The cancellation cost was $60, which is payable upon processing the cancellation. Since this is over $50, it also attracts the $30 credit card surcharge since I was to use a credit card to pay the cancellation fee. I was told I had to thus pay $90 to cancel my reward booking.

A 50% surcharge on the actual fee being paid, what a joke VA.