Hertz Perth - 1.5% credit surcharge?

[iskyfly]

Having just completed my annual 1.5 month rental in Perth I noticed I was charged a 1.5% cc surcharge fee. I don't seem to remember seeing this on previous trips. Is this unique to Australia?

Thanks!
-Giles

 

[DeKa]

A surcharge is becoming very common here since the Reserve Bank permitted it.
Hertz do publish it: https://www.hertz.com.au/rentacar/r...ates/rentalTerms.jsp?KEYWORD=FEES&EOAG=MELT50

 

[AdMEL]

Hertz introduced a credit card surcharge of 0.8% a couple of years ago and increased it to 1.5% late last year.

Europcar has a credit card surcharge of 1.65%.

Thrifty also has a credit card surcharge of a similar amount.

Avis and Budget have not yet imposed a credit card surcharge.

 

[Moopere]

A surcharge is becoming very common here since the Reserve Bank permitted it.
Hertz do publish it: https://www.hertz.com.au/rentacar/r...ates/rentalTerms.jsp?KEYWORD=FEES&EOAG=MELT50

I'm glad you provided the link because its almost impossible to find on their site. Also just took a booking right through to the point of actually reserving a vehicle and there is no sign of a surcharge for credit card until you get to this at the very bottom:

"By clicking on the "Submit" button, you confirm that you understand and accept our Rental Qualification and Requirements, and you understand the age restrictions"

Inside that button are 20 different FAQ's which is where your link comes from. Most cost type charges applicable seem to be presented to you up front, like admin recovery and registration recovery but this sneaky CC charge is not.

I reckon thats almost fraudulent.

What would happen if you just paid the invoice that was generated on the web and not the surcharge (which I realise would involve a back charge, but then, so be it)

Otherwise, now that I know this I'll be asking for a 1.5% discount up front, then let their own machinery add the 1.5% again at the end.

[Edit: They are also confused, elsewhere in their massive FAQ section it states:

"A valid credit card in the renter's name is required for booking, however you may pay with cash when you return the vehicle.* Credit cards must have available credit for the estimated amount of rental charges plus AUD $200.00 for any incidental charges in order to secure the rental (Please see below for commercial vehicles, prestige and fun fleet). A credit card surcharge of 0.8% will apply to qualifying rentals."

Bold underline is mine.

 

[iskyfly]

Thank you all.

Might be time for me to speak with my cc company.


Follow-up;

As an ex-pat / Australian born, passport holder that resides overseas, any suggestions on how to avoid CC CX fees (other than paying cash?)

Thanks again!
-Giles

 

[markis10]

I dont know why people get so up in arms about the credit card surcharge of 1.5% (which is part of the taxes quote BTW), compared to the premium location charges its chickenfeed and both are avoidable with some effort, like everything you pay for convenience I suppose:

Location Fee



Adelaide Airport 14.00 %
Alice Springs Airport 17.00 %
Armidale Airport 6.00%
Avalon Airport 10.00 %
Ayers Rock Airport 19.00 %
Ayers Rock Downtown 19.00%
Ballina Airport 5.00 %
Brisbane Airport 14.00 %
Broome Airport 10.00 %
Cairns Airport 14.00 %
Coffs Harbour Airport 4.00 %
Canberra Airport 22.00 %
Coolangatta Airport 14.00 %
Darwin Airport 14.00 %
Emerald Downtown 15.00%
Emerald Airport 15.00%
Geraldton Airport 5.25 %
Grafton Airport 6.00%
Gunnedah Airport 6.00%
Hervey Bay Airport 10.00 %
Hobart Airport 12.00%
Kalgoorlie Airport 10.00 %
Karratha Airport 9.22 %
Launceston Airport 7.50 %
Lismore Airport 2.00 %
Mackay Airport 11.00 %
Maroochydore Airport 14.00 %
Merimbula Airport 5.00 %
Melbourne Airport 17.00 %
Mildura Airport 5.00 %
Moree Airport 6.00 %
Moruya Airport 5.00 %
Mt.Isa Airport 11.6%
Narrabri Airport 6.00 %
Newcastle Airport 16.00 %
Perth Airport 15.00 %
Port Hedland Airport 9.22 %
Port Macquarie Airport 3.30 %
Proserpine Airport 5.00%
Rockhampton Airport 13.50 %
Rockhampton Trucks 13.50%
Sydney Airport 22.00 %
Sydney City 5.00%
Tamworth Airport 6.00%
Taree Airport 6.00%
Townsville Airport 16.00 %

 

[oz_mark]

Location Fee

Canberra Airport

22.00 %​

Sydney Airport

22.00 %​

Holy ripoff's Batman.

I did once catch a taxi from an airport to a downtown location to avoid theses fees an a several day rental.

 

[Deleted member 29185]

The thing that peeves me about the credit card fee is the simple fact that there is no option but to pay it. Many businesses apply a CC fee but there are always alternative payment methods so you don't have to pay it if you choose not to.

In the case of the hire car co's, CC is the only payment method to many of us and as such should be included as an overhead, not an addition fee. That way any price comparisons between hire car co's would be fair.

It's not the value, but the principle.

 

[markis10]

The thing that peeves me about the credit card fee is the simple fact that there is no option but to pay it. Many businesses apply a CC fee but there are always alternative payment methods so you don't have to pay it if you choose not to.

In the case of the hire car co's, CC is the only payment method to many of us and as such should be included as an overhead, not an addition fee. That way any price comparisons between hire car co's would be fair.

It's not the value, but the principle.

That is not true, you always have cash or prepaid options as well as a company account if on business travel.

 

[Moopere]

I dont know why people get so up in arms about the credit card surcharge of 1.5%

For mine, it should be shown as part of the cost, not added at the end, or worse, added only when you pay.

These types of companies rely upon credit cards to do business. When was the last time you were successfully able to hire a car or book a hotel room without a credit card at all?

I'd suggest that for at least two decades and more its been a basic part of their business model. Transaction costs therefore should not be a 'surcharge' but a standard cost of doing business. They don't charge you extra for toilet paper at hotels, or cleaning the car before you rent it.

Would I get upset if the cost rose from 40$ a day to $40.60? No, not at all, because the quote is up front where you can see it and compare it.

Adding cost after quote is obfuscation. Also, just by the fact of adding it after the main quote creates the monster in the consumers eyes. They are, in fact, creating a focus on this tiny charge and inviting argument.

(which is part of the taxes quote BTW)

Ahh. I didn't know that, thanks for the heads up. I kinda expected it to be somewhere because it would verge on illegal to hide it away these days.

 

[Moopere]

That is not true, you always have cash or prepaid options as well as a company account if on business travel.

I had formed the impression that you needed a card to really do any business at all in the first instance.

If, at the end of the hire you wanted to pay cash you could bring a wad of bills with you and they would credit your card and take the cash.

I'd say this is far from their own preferred model though. Taking enough cash daily would eventually require armoured trips to the bank from the various branches inviting every sort of expense and general trouble. Not to mention exposing your staff to the inherent dangers of holding large sums of cash (robbery, etc).

I think this is what makes it seem like such a gouge to me. The company really doesn't want cash, surely.... and you as customer probably want to use a card for convenience too - yet they spank you for it.

 

[Deleted member 29185]

That is not true, you always have cash or prepaid options as well as a company account if on business travel.

I'd be curious to know which country you're referring to?

I've tried to pay cash as a point of principle....cash plus the excess amount as a bond! They refused without a CC. That was Europcar in Mackay. I very specifically asked the lady whether she would refuse to rent to me with cash in lieu of card and the reply was YES.

I've never been down that path with the other mobs and assumed they are the same. I don't have any corporate accounts as I find better deals on the internet when needed (with Velocity of Qantas card discount) than any corporate discount (of which I have had three previously) has ever offered me (a small company).

 

[Moopere]

I'd be curious to know which country you're referring to?

I've tried to pay cash as a point of principle....cash plus the excess amount as a bond! They refused without a CC. That was Europcar in Mackay. I very specifically asked the lady whether she would refuse to rent to me with cash in lieu of card and the reply was YES.

Yes, its interesting isn't it. This is part of my beef with the card surcharge. Credit cards are the basis of these companies transaction based payments yet they are rude enough and brazen enough to charge for what amounts to -their- basic business practices.

However, rant aside, the subtlety of your situation is that they won't rent you a car without a CC, but you can pay at the end of your rental period with cash. They will then, all other things being equal, refund the CC charge (if there was one for bond or whatever). I'd be mightily peeved if they tried to deduct the 0.8% or 1.5% from the returned bond, but surely they wouldn't try to be -this- cheeky ... surely.

[Edit: Oh, and of course most of the big players have at least a few offices, generally the smaller ones, where they state that cash can't be accepted. I'd have thought there would be an interesting argument to be had about that. Do they waive their surcharge on CC if you use those offices? I seriously doubt it. Still, might be fun to poke the bear if it pops up.]

 

[AdMEL]

Yes, its interesting isn't it. This is part of my beef with the card surcharge. Credit cards are the basis of these companies transaction based payments yet they are rude enough and brazen enough to charge for what amounts to -their- basic business practices.

However, rant aside, the subtlety of your situation is that they won't rent you a car without a CC, but you can pay at the end of your rental period with cash. They will then, all other things being equal, refund the CC charge (if there was one for bond or whatever). I'd be mightily peeved if they tried to deduct the 0.8% or 1.5% from the returned bond, but surely they wouldn't try to be -this- cheeky ... surely.

[Edit: Oh, and of course most of the big players have at least a few offices, generally the smaller ones, where they state that cash can't be accepted. I'd have thought there would be an interesting argument to be had about that. Do they waive their surcharge on CC if you use those offices? I seriously doubt it. Still, might be fun to poke the bear if it pops up.]

Hertz and Avis do not charge you anything until you return the car - they authorise your card for the estimated amount of the rental when you collect the car, in the case of Avis, or the amount of the rental plus an additional amount, $200 in the case of Hertz, then charge you when you return the car, so as far as I understand there would be no problem paying in cash. If cash was paid, your card would not be charged.

Thrifty and Europcar have in the past variously charged me upfront and once I joined their membership program, also only authorised my card at the start then charged it upon returning the car.

 

[Moopere]

Hertz and Avis do not charge you anything until you return the car - they authorise your card for the estimated amount of the rental when you collect the car, in the case of Avis, or the amount of the rental plus an additional amount

I think this has changed recently due to legislative change (might be wrong). I remember years ago being charged up front, then additional later for incidentals. For quite a while now I've only been charged at return of vehicle but they will still test your card for whatever they think the final cost will be.

 

[AdMEL]

I think this has changed recently due to legislative change (might be wrong). I remember years ago being charged up front, then additional later for incidentals. For quite a while now I've only been charged at return of vehicle but they will still test your card for whatever they think the final cost will be.

In the last 5 years, I have not been charged by either Hertz or Avis until returning the car. This has almost always been at corporate locations - it may have been different at some franchised/licensed locations.

As far as I am aware, there has been no recent change due to legislation.

As I mentioned earlier, upon collection, they will authorise the card, i.e. reserve an amount, for either the estimated rental (Avis) or the estimated rental plus a defined amount ($200 for Hertz). This is not a charge on the card and it does not accrue interest. It will lapse after a certain number of days if no charge is made.

 

[markis10]

In the last 5 years, I have not been charged by either Hertz or Avis until returning the car. This has almost always been at corporate locations - it may have been different at some franchised/licensed locations.

As far as I am aware, there has been no recent change due to legislation.

As I mentioned earlier, upon collection, they will authorise the card, i.e. reserve an amount, for either the estimated rental (Avis) or the estimated rental plus a defined amount ($200 for Hertz). This is not a charge on the card and it does not accrue interest. It will lapse after a certain number of days if no charge is made.

Absolutely correct, use a card as a deposit then pay cash on return, no issues with Hertz doing this and please keep in mind this thread is about Hertz. The only thing that is not great is that they won't take EFT on return, that needs to be addressed.

 

[jsoprano]

Avis and Budget have not yet imposed a credit card surcharge.

This might be correct as they do not charge a seperate fee for CC transactions, but one can argue they have "burried" these charges within their so called "Administration Fee". While this fee sits at 3.5% with Hertz, at least Avis' charges are beyond 5%.

But the argument is correct that when geting a quote from Avis these charges are included in the price, at Hertz they are not. But at Hertz you can avoid them paying cash on return, at Avis not.

 

[markis10]

This might be correct as they do not charge a seperate fee for CC transactions, but one can argue they have "burried" these charges within their so called "Administration Fee". While this fee sits at 3.5% with Hertz, at least Avis' charges are beyond 5%.

But the argument is correct that when geting a quote from Avis these charges are included in the price, at Hertz they are not. But at Hertz you can avoid them paying cash on return, at Avis not.

Makes me wonder how susceptible to action Hertz are in the case of not being up front with fees (although I like how they display all the cars rates unlike Avis - mind you the same functionality can be had by using Qantas.com to check rates at all companies), Avis are only up front because they were forced to be after massive refunds:

 

[jsoprano]

Makes me wonder how susceptible to action Hertz are in the case of not being up front with fees...

They are not shown upfront because no one is forced into them, they are avoidable by paying cash. The best comparison is to the hotel front desk: when checking in you will always present your CC for the deposit, and when checking out they all have the little sign on the counter "Please note CC fees of 1% to 2.5% blah blah", these fees are never added to the room rate upfront as you can choose your payment method when checking out.

The Admin Fee (at Hertz and at Avis, and all the others) is not avoidable, therefore included in the upfront price. Just 2 different ways of presenting it to the customer, who in 99.9% of cases will not take notice at all.