Qantas 'pocketing $100m' in excess card fees

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holdenvxman

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Re: Qantas denies pocketing $100 million from card surcharges

I don't see how they are covering cost's charging $30
 

lovestotravel

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Re: Qantas denies pocketing $100 million from card surcharges

$7.70 for a $100 fare is a 7.7% surcharge..

That is NOT the cost of accepting a credit card

Even on a $200 or $300 flight it's still too high

However if the flight was $550ish it would be about right

$30 on a $1500 international flight is fine as that's close to 2%

However, I can go and spend $12,000 and still only be charged $30 which is 0.25%....
 

mannej

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Re: Qantas denies pocketing $100 million from card surcharges

The calculation method is a bit off. Makes a lot of assumptions.

What is the fee for Virgin Australia International surcharge?

In all honesty, per sector fees would be more frustrating, plus the JQ fees full stop.
 

v8Statesman

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Re: Qantas denies pocketing $100 million from card surcharges

OT, I feel violated. My avatar had been stolen :(
 

lovestotravel

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Re: Qantas denies pocketing $100 million from card surcharges

Credit card fees should be a % figure, not a set $ figure

They should only be allowed to be the actual cost of accepting the credit card

EG 1.1% for Visa/MC, 1.8% for Amex etc etc

Even then I am not a fan of the fees at all
 

v8Statesman

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Re: Qantas denies pocketing $100 million from card surcharges

Credit card fees should be a % figure, not a set $ figure

They should only be allowed to be the actual cost of accepting the credit card

EG 1.1% for Visa/MC, 1.8% for Amex etc etc

Even then I am not a fan of the fees at all

Me either. I'm a firm believer in that the (hidden) costs associated in handeling cash for a large organisation would outweigh the 0.XX% direct charge by a bank to electronically process a CC transaction!
 

holdenvxman

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Re: Qantas denies pocketing $100 million from card surcharges

They would also be able to strike a deal with amex and diners simular to major retailers
 

Justchecking

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Re: Qantas denies pocketing $100 million from card surcharges

They would also be able to strike a deal with amex and diners simular to major retailers

Who says they don't. CC fees are actually dependant upon volume of business you are putting through them. I imagine any airline but especially one as large as QF would have considerable bargaining power to negotiate fees on their merchant account. If McDonalds can let me buy a hash brown on my visa without charge what does that tell you? It tells me they've negotiated their merchant account fees to virtually nothing based on volume of sales.
 

anat0l

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Re: Qantas denies pocketing $100 million from card surcharges

They would also be able to strike a deal with amex and diners simular to major retailers

On the other hand, the credit card companies would probably be in the cat birds seat, since they know the airlines rely on it so much more than any other retailer. How many air tickets are sold these days in cold hard cash? They know this.

Also, airlines are probably the ones that have to handle reversed charges the most with these companies. Seeing as companies don't like their money being d***ed around (as too the airlines), they are probably again jockeying for a bit more out of the airlines.

Besides, what is an airline to do? "Get me a better deal or we won't offer this credit card?" And what would AFF do if QF suddenly decided they won't accept Amex? Who will be the real losers?

Me either. I'm a firm believer in that the (hidden) costs associated in handeling cash for a large organisation would outweigh the 0.XX% direct charge by a bank to electronically process a CC transaction!

Again, there isn't much cold hard cash to handle! But, I agree with you. If need be, raise the damn ticket prices and cover them in that! The whole argument of surcharging only those that use particular instruments because its equitable is a farce; especially when the set of instruments that are surcharge-free is very small, if not non-existent.

The calculation method is a bit off. Makes a lot of assumptions.

What is the fee for Virgin Australia International surcharge?

In all honesty, per sector fees would be more frustrating, plus the JQ fees full stop.

VA's charges aren't much off QF.

For domestic, VA charge $4.50 per pax per sector (i.e. a two sector booking attracts a $9.00 charge). For international, it's $7.00 per pax per shorthaul booking and $25.00 per pax per longhaul booking.
 

lovestotravel

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Re: Qantas denies pocketing $100 million from card surcharges

They would also be able to strike a deal with amex and diners simular to major retailers

Of course, the 1.1% and 1.8% fees I quoted are for a small business with EFTPOS transations of about $ 3.5 Million

Another business is getting 1.5 for VI/MC and was offered 2.5% for Amex for about $ 1 Million through EFTPOS

Woolies and those companies wouldn't be paying much.....
 

amaroo

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Re: Qantas denies pocketing $100 million from card surcharges

Credit card fees should be a % figure, not a set $ figure

It's a real shame that the ATO hasn't adopted "the QF way" and charge a set $ figure for CC payments;)
 
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Anna

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Re: Qantas denies pocketing $100 million from card surcharges

What the no news report doesn't point out is that the $7.70 domestic charge is per passenger - not per credit card transaction. If you pay by cc for 4 passengers on one flight in one transaction you pay $7.70 x 4. How is that justified, QF?
 

oz_mark

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Re: Qantas denies pocketing $100 million from card surcharges

What the no news report doesn't point out is that the $7.70 domestic charge is per passenger

Actually, they do point that out:

Qantas charges $7.70 to use a credit card to book domestic flights and $30 for international flights. The fees are charged per passenger per ticket regardless of whether the ticket is one-way or return.


..and I am of the view that if they want to charge a fee, then it should be a percentage of the transaction.
 

mannej

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Re: Qantas denies pocketing $100 million from card surcharges

What the no news report doesn't point out is that the $7.70 domestic charge is per passenger - not per credit card transaction. If you pay by cc for 4 passengers on one flight in one transaction you pay $7.70 x 4. How is that justified, QF?
How about other airlines per passenger per sector?

Surely the question applies to all airlines, especially JQ?
 

Clarkes

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Re: Qantas denies pocketing $100 million from card surcharges

Maybe the ACCC?
 

Clarkes

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Re: Qantas denies pocketing $100 million from card surcharges

Hells Angels?
 
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