Excessive Surcharges after 1 Sep

[Mr_Orange]

5% in NSW but still too much. Everyone has wireless card acceptance even with square readers now. Can't cost them that much to process payments.

QLD hasn't cuaght up yet with the Cabcharge rorting fee regulation.

 

[dajop]

True, but it is still an excessive "surcharge" for doing about 25 cents worth of work...and it ALL goes overseas with no tax payable to Australia.

Sounds a bit like Apple to me. Or any one of a range of different companies. You're paying for IP and product development (or a brand) - not an actual good or service.

 

[hossein_au]

Beautify (ugly face?) of these types of legislations is how easy it is for corporations to overcome it. Instead of reducing the fees they just have to call it handling fee or admin fee or something of that sort. Remember those pesky fuel surcharges? When the call to ban them got too loud, they just rename it to carrier charges. As long as "letter of the law" is enforced (instead of "intent of the law", these types of gauging is going to only increase).

 

[Aussie_flyer]

Ubers business arrangements have nought to do with this thread.

 

[hossein_au]

!?!??

1.45% is hardly ridiculous ... and their Web site states that's what they pay the card provider ...

And I guess they have absolutely no incentive to negotiate a better rate, do they?

Thinking aloud here, what is to stop a company to say to their card provider "why don't you charge us x% (instead of the current rate), where x is higher than the current rate, and in lieu of that give us a discount on another product we get from you"?

 

[Nutcase]

Interesting was looking at some flights on bestjet, these do seem somewhat excessive



Also find it not surprising, but amazing the cut that credit card companies and banks extract from foreign card transactions - 2.9% to merchant (if this is accurate) and about 3% to consumer. Sucking out 6% ..... when I can transfer small amounts of money by various providers and all they suck out its about 1 - 1.2%. Rent seeking at its worst.

Foreign cards were not included in the calculation of the wholesale weighted average of 0.50%. I believe that has now changed.

Foreign card interchange (depending on the scheme) is/was around 2%. The acquiring bank puts a margin on top of this.

And yes, Banks make a LOT of money out of foreign transactions however as a % of total card spend it is quite small. This is why Citibank are keen for people to use thier citibank plus account overseas. The attached debit card used in Australia earns them a few cents in interchange. The minute it is used overseas BINGO it attracts foreign intercahnge and they earn around 2% on each transaction. They also pay no interest on the funds you leave in your account. They can also give away the ATM access as they own the network. The free overseas ATM fee is just bait.

 

[dajop]

Fnd yes, Banks make a LOT of money out of foreign transactions however as a % of total card spend it is quite small. This is why Citibank are keen for people to use thier citibank plus account overseas.

At least here in Singapore there is some benefit for overseas spending, you could say they incentivise it. I get 2 points per dollar for any overseas spend, 3 points on long weekends with Citibank Visa card. My partner has ANZ Visa card that gets 2.8 points per dollar on spend in AU & NZ (so that works out to about 3 points per AUD at the moment, accounting exchange rate and foreign txn fee). Can't recall if any Australian based cards have such incentives.

 

[DeKa]

At least here in Singapore there is some benefit for overseas spending, you could say they incentivise it. I get 2 points per dollar for any overseas spend, 3 points on long weekends with Citibank Visa card. My partner has ANZ Visa card that gets 2.8 points per dollar on spend in AU & NZ (so that works out to about 3 points per AUD at the moment, accounting exchange rate and foreign txn fee). Can't recall if any Australian based cards have such incentives.

Citibank Prestige does - 5 pp$ overseas.
Citibank Platinum and Signature used to have increased points for overseas spend but they stopped it.

 

[Nutcase]

At least here in Singapore there is some benefit for overseas spending, you could say they incentivise it. I get 2 points per dollar for any overseas spend, 3 points on long weekends with Citibank Visa card. My partner has ANZ Visa card that gets 2.8 points per dollar on spend in AU & NZ (so that works out to about 3 points per AUD at the moment, accounting exchange rate and foreign txn fee). Can't recall if any Australian based cards have such incentives.

Singapore has different interchange rates to those in Australia. The Singapore government has more legislation around the issuing side (credit limits) than it does around the acquiring side. The domestic business in Singapore is also very small and they have a much higher foreign spend on their cards as a percentage of total card spend. Its a completely different market. Surcharges are banned and they must accept all cards. Australia did away with this 10 years ago.

Your Singapore issued card is earning ANZ Singapore around 2% interchange at the moment as well as costing the acquiring bank and merchant accordingly.

Australian interchange is one of the lowest in the world. The RBA has always wanted it to be zero and will continue to push for that eventual outcome (which I fully agree with). The card schemes and the banks have never been able to behave themselves and stay under the numbers recommended by the RBA so they copped it in the neck with the 0.80% cap and the inclusion of the companion AMEX.

 

[Blackswan]

Just went into JB-HIFI at Ennex100 Perth. Signs up for a 2.65% surcharge on Diners and Amex.

Surely they can negotiate a better rate, particularly with Amex?

 

[Nutcase]

Just went into JB-HIFI at Ennex100 Perth. Signs up for a 2.65% surcharge on Diners and Amex.

Surely they can negotiate a better rate, particularly with Amex?

The odd thing with JB is that they offer interest free terms through HSBC which for 48 months or more would cost them around 10%. The average ticket is a lot higher than an AMEX purchase however you would think that they would encourage AMEX rather than discourage it.

They are just being lazy with that surcharge. They are in the interest free business selling TV's. The rest of the inventory sells itself.

 

[kpc]

Just went into JB-HIFI at Ennex100 Perth. Signs up for a 2.65% surcharge on Diners and Amex.

Surely they can negotiate a better rate, particularly with Amex?

I needed a new phone last week....I was after the Samsung Galaxy 7...JB HiFi wanted the above surcharge to use an Amex....The Good Guys, next door, had no surcharge to use an Amex! Guess who got my business?!...oh, the phone was $50 cheaper at The Good Guys as well!!

 

[Nutcase]

I needed a new phone last week....I was after the Samsung Galaxy 7...JB HiFi wanted the above surcharge to use an Amex....The Good Guys had no surcharge to use an Amex! Guess who got my businesses?!...oh, the phone was $50 cheaper at The Good Guys as well!!

Thats a great story. You saved about $60! Awesome.

 

[Blackswan]

I needed a new phone last week....I was after the Samsung Galaxy 7...JB HiFi wanted the above surcharge to use an Amex....The Good Guys, next door, had no surcharge to use an Amex! Guess who got my business?!...oh, the phone was $50 cheaper at The Good Guys as well!!

Great outcome!

 

[Nutcase]

Great outcome!

Im super impressed. Especially since The Goodguys will be part of JB soon.

 

[opusman]

Just went into JB-HIFI at Ennex100 Perth. Signs up for a 2.65% surcharge on Diners and Amex.

Surely they can negotiate a better rate, particularly with Amex?

When you can get 5.5pt/$ on JB gift vouchers with QC why would you care what rate Amex gets?

 

[N860CR]

Thats a great story. You saved about $60! Awesome.

You're right. We should not bother and just hand our money over to these corporations at their will

 

[Mr_Orange]

When you can get 5.5pt/$ on JB gift vouchers with QC why would you care what rate Amex gets?

Care to explain that please?

 

[opusman]

Care to explain that please?

Buy JB gift vouchers through Qantas Cash, earns 5 pts / $ upfront plus the normal .5 pt / $ for domestic spend.

 

[unfunkable]

Or if you don't have QC, you can buy jb vouchers in coles or woolies I think. - use amex plat edge to get 3/$ no surcharge.