Idea for VA - ditch the CC fee for using a Velocity card

[Warks]

The credit card fee really grates for me and I'm sure many of us. I find it even more galling that using an airline's 'own' credit card still attracts the same fee as every other card. I was booking and paying for a flight on VA last night and used my Velocity Amex and it was treated the same as any other card. $10 for the privilege.

How about an incentive to use the card by waiving the fee?

How about it? Huh?

 

[smit0847]

I completely agree - I've never understood why there is no incentive to use a Virgin branded credit card. It seems very much like a 'QF' idea of stinging customers at every opportunity and just relying on brand loyalty. Even true LCCs usually allow free payment when using the airlines own credit card.

You can pay for most flights with POLi for free - the saving far outweighs any points you would earn on cheap flights by using a point-earning credit card (people who pay $15 for 500 points are idiots).

 

[TomVexille]

That's a great idea. Although I'm not sure how easy it would be to implement as there are multiple issuers of Velocity branded cards.

 

[grubbidok]

You can pay for most flights with POLi for free - the saving far outweighs any points you would earn on cheap flights by using a point-earning credit card (people who pay $15 for 500 points are idiots).

Umm... no you can't. Some of the better-sense banks in Australia (including the one I'm in) don't allow POLi access and others simply don't work with it. There needs to be a better option to reduce the fee.

I've always thought it weird that even 'Virgin' cards don't have this option when even ultra-LCC carriers allow for fee waiver on branded cards (or at least allow for no fee with Debit card payment, and charge a percentage rather than a 'flat fee' for CC). I think it is a great idea (though as someone with a Velocity card, I would say that wouldn't I).

Of course most US airlines have the smartest approach - they don't have a CC fee because they've asked the rather simple and common sense question "how the f%$# else are people going to book these flights online?". It's there, but it's simply incorporated in the cost you see.

 

[notzac]

You can pay for most flights with POLi for free - the saving far outweighs any points you would earn on cheap flights by using a point-earning credit card (people who pay $15 for 500 points are idiots).

POLi means handing over access details for your bank account to a third party - think about that for a moment. What happens if money is stolen from your account? Your bank now has reasonable grounds to say that it's your fault, as you didn't secure access to your account.

I still think VA could offer BPAY for payment without CC fees.

 

[p4tricia]

In the past I used Zuji & Expedia to avoid the credit card booking fee. Mind you, retro claim with partner airlines (most notably MI and SQ) is a bit of a nightmare with VA. So watch out for that, book only VA flights, not partner. Although apparently Zuji now charge flight processing fee. Still look free on expedia.

Just google 'no flight booking fees' to see your other options.

 

[knasty]

POLi means handing over access details for your bank account to a third party - think about that for a moment. What happens if money is stolen from your account? Your bank now has reasonable grounds to say that it's your fault, as you didn't secure access to your account.

I still think VA could offer BPAY for payment without CC fees.

I keep a separate no fee bank account with a POLi eligible bank. Load it up the day before I want to book with the required amount. Also helps if I need to bank cheques as my mortgage provider doesn't have a branch nearby.

 

[Warks]

Thanks for the replies. So I'm not the only one?

Are there other Virgin cards? I know there's a Virgin Money card they are always trying to sell me. Others?

Would be nice if QF did the same with their cards - Woolworths at least you'd think. Is that ANZ Telstra-QF Visa card still around? Used to have one in the late 90s.

 

[TomVexille]

Thanks for the replies. So I'm not the only one?

Are there other Virgin cards? I know there's a Virgin Money card they are always trying to sell me. Others?

Would be nice if QF did the same with their cards - Woolworths at least you'd think. Is that ANZ Telstra-QF Visa card still around? Used to have one in the late 90s.

NAB and AMEX also have co-branded cards.

 

[r.dunn]

Virgin Money is a different company to the VA airline, the only thing they share is the brand name. The financial services company is as related to the airline as Virgin America, Virgin Atlantic and Virgin Music.

And the fee is "covers a range of costs, activities, fees and charges in relation to the booking, including (among other things) the reasonable costs of accepting card payments", all of which would still apply even if the companies were related. Especially the merchant fees charged by Visa and MasterCard.

As a tip, though, if you want to minimise the amount of Booking & Service Fees payable, why not first purchase a Gift Voucher for the value of your fare? You will have to pay 2% surcharge on the Gift Voucher...but depending on the number of passengers travelling and the route you're flying, that may work out as a cheaper option?!

 

[Warks]

Virgin Money is a different company to the VA airline, the only thing they share is the brand name. The financial services company is as related to the airline as Virgin America, Virgin Atlantic and Virgin Music.

And the fee is "covers a range of costs, activities, fees and charges in relation to the booking, including (among other things) the reasonable costs of accepting card payments", all of which would still apply even if the companies were related. Especially the merchant fees charged by Visa and MasterCard.

As a tip, though, if you want to minimise the amount of Booking & Service Fees payable, why not first purchase a Gift Voucher for the value of your fare? You will have to pay 2% surcharge on the Gift Voucher...but depending on the number of passengers travelling and the route you're flying, that may work out as a cheaper option?!

Nevertheless as there's really no other option other than to use a credit card you'd think they could encourage use of their own card by absorbing that inflated fee.

Virgin Money may be as closely related as Virgin Gyms but the Velocity Amex card definitely belongs in the airline's pocket!

 

[jpk]

I second this dropping of fees for branded cards (hey if Jetstar and Ryanair can do it, anyone can!).
I'd also like to see double points for booking flights on the branded card, lots of cards do this, eg: BA Amex.

 

[Warks]

I just got my Amex bill and the SYD-LAX booking is on there with the cost of the flights for four of us listed individually then four separate entries of $30 for the privilege of using THEIR credit card for a total of $120. I wrote Virgin a complaint just for the sake of venting, much good will it do. I suggested waiving the fee or at least halving it for payments with THEIR credit card.

While I'm on the subject what's with the weird billing addresses with Virgin? Winton? Gayndah? Do they really have offices processing payments in rural QLD?

 

[SimonF]

I just got my Amex bill and the SYD-LAX booking is on there with the cost of the flights for four of us listed individually then four separate entries of $30 for the privilege of using THEIR credit card for a total of $120. I wrote Virgin a complaint just for the sake of venting, much good will it do. I suggested waiving the fee or at least halving it for payments with THEIR credit card.

While I'm on the subject what's with the weird billing addresses with Virgin? Winton? Gayndah? Do they really have offices processing payments in rural QLD?

Why would they waive the fee when they are making so much money from it?

 

[Warks]

Why would they waive the fee when they are making so much money from it?

Be e nice incentive to use their card would it not?

American cards offer you $100 discounts when you take them up. They could follow suit. I'm going to chop this one up at the end of the year as it's too expensive.

 

[medhead]

This is why I use my earth Amex to buy VA flights.

 

[Warks]

This is why I use my earth Amex to buy VA flights.

What is that? No cc fees?

 

[travelislife]

It would be awesome for one of the airlines to take a market leading approach on this and came out with an advertising campaign about 'No Credit Card Fees, Ever!'. If they raised every fare by $2-$3 to cover it and see if the numbers on who now decide to book with them increase. But I am guessing someone has 'done the numbers' and it doesn't correlate in to more sold fares by removing the fee.

I still blame the ACCC (or some other government financial body was it?) who allowed for surcharging on credit cards in Australia. I reckon it would have been much better that the rules stayed as no surcharge allowed and then it would have been up to the merchants to decide whether they wanted to allow cards and they could do the deals behind the scenes with Visa, Mastercard and the banks.

 

[medhead]

What is that? No cc fees?

No, going to paid the cc fee either way. Get to earn 1.5 QFF points per $

 

[Warks]

One thing that sucks about Amex (apart from the higher CC fees imposed by certain businesses) is the very short interest free period. I get the paper bill on 16 Sept and it's due on 30 Sept. I paid a substantial tax bill on on the Woolworths MC about the same time as I paid for the airfares on this card and I haven't even received the statement yet. That means it will be mid October before it's due.