Jetstar (NZ) $5 credit card fee for $9.75 payment

[Mattg]

I've just redeemed a Jetstar credit voucher for a flight in New Zealand. The voucher covered most of the cost of the flight, but there was an extra amount of NZD9.75 to pay. The only way to pay for this was by credit card, and Jetstar very kindly added on a NZD5 credit card fee!



I realise that New Zealand has different rules around credit card fees, but surely a payment surcharge of 51% is a bit excessive?!

I was charged NZD14.75 in total.

 

[SOPOOR]

Could it be one of those loopholes that they failed to consider?..... unlikely for an airline though

Does that mean a $0.01 payment would also be a $5 fee

 

[Mattg]

Does that mean a $0.01 payment would also be a $5 fee

Quite possibly.

FWIW, last month I paid $8 for up-front seat selection on a different Jetstar flight in New Zealand. The website said there would be no booking & service fee, but when I put in my credit card details it then added on a fee of 2 cents. When I got the invoice, it said I was actually charged 8 cents (which is also what appeared on my credit card statement).

I didn't bother following up with Jetstar over 8 cents, but this is technically illegal. I wonder how many multiples of 8 cents they've scammed out of other customers?

 

[henrus]

They're just out to sting people. What I find amusing is the card fee of $5 is free if you use a Jetstar Mastercard. What they also fail to mention is that Jetstar Mastercard has a 3% international transaction fee.

Yes, I know in this case it's small (3% is 29c) but anyone purchasing over NZ$167 of flights on their Jetstar Mastercard is being ripped off.

 

[Kiwi_Flyer]

The worst I've experienced myself was $5 fee on $2 fare (yes excess amount not covered by credit).

 

[SOPOOR]

Quite possibly.

FWIW, last month I paid $8 for up-front seat selection on a different Jetstar flight in New Zealand. The website said there would be no booking & service fee, but when I put in my credit card details it then added on a fee of 2 cents. When I got the invoice, it said I was actually charged 8 cents (which is also what appeared on my credit card statement).

I didn't bother following up with Jetstar over 8 cents, but this is technically illegal. I wonder how many multiples of 8 cents they've scammed out of other customers?

Years ago I had to book 3 x $59 jet star flights and the fee was $15 x3 if I recall correctly on each one.

Was not happy

 

[2infinity]

The only way to pay for this was by credit card, and Jetstar very kindly added on a NZD5 credit card fee!

I'm not sure if NZ has the same credit card surcharge laws as Australia, but doesn't appear you are getting charged a surcharge for using your credit card. You are getting charged for making a booking and the exemplary service you received (Booking and Service Fee). I'm sure this 'Booking and Service Fee' incorporates a credit card usage surcharge, but it is hidden, so maybe the whole fee is for credit card surcharges and maybe it's not.

FWIW, last month I paid $8 for up-front seat selection on a different Jetstar flight in New Zealand. The website said there would be no booking & service fee, but when I put in my credit card details it then added on a fee of 2 cents. When I got the invoice, it said I was actually charged 8 cents (which is also what appeared on my credit card statement).

I didn't bother following up with Jetstar over 8 cents, but this is technically illegal. I wonder how many multiples of 8 cents they've scammed out of other customers?

It seems so little to not bother worrying about, 8c (or 1%). But like you said, how many customers has Jetstar scammed an extra 1% out of? Here's a hypothetical: Jetstar made $220M profit in first half of 2020. If every customer got scammed 1%, that is $2,200,000. That's a lot of revenue for a seemingly innocuous overcharge.

It costs nothing but time to send an email to Jetstar to have that overcharge reversed. It will cost them more in wages to fix it for you. A small lesson for them. A bigger lesson if everyone complains. EVERYONE SHOULD COMPLAIN. If they don't respond, you are now within your rights to pursue a complaint with Fair Trading or ACCC, which will cost them even more in wages trying to sort it out. You could also try the Airline Customer Advocate, but I haven't read anything good about this service

 

[moa999]

It's a flat fee. Expensive on a $29 fare or top-up to voucher. Cheap if you're buying a Business class ticket.

Don't think the Advocate would cover a JQ NZ booking.

 

[oz_mark]

I'm not sure if NZ has the same credit card surcharge laws as Australia, but doesn't appear you are getting charged a surcharge for using your credit card. You are getting charged for making a booking and the exemplary service you received (Booking and Service Fee). I'm sure this 'Booking and Service Fee' incorporates a credit card usage surcharge, but it is hidden, so maybe the whole fee is for credit card surcharges and maybe it's not.

They're not the same - and one difference is that Aust law defines credit card surcharges in functional terms. So, if a fee applies to one form of payment and not another, it is a payment surcharge, whatever the merchant tries to call it.

 

[Kiwi_Flyer]

The fee JQ NZ charges is a cc surcharge not a general booking fee, as evidenced by it being waived if you have a JQ branded cc. Of course a JQ branded cc is not available unless resident of Australia.

 

[Mattg]

The fee JQ NZ charges is a cc surcharge not a general booking fee, as evidenced by it being waived if you have a JQ branded cc. Of course a JQ branded cc is not available unless resident of Australia.

And even in Australia, the Jetstar Mastercard has not been offered to new cardholders since early 2020.