Qantas 'pocketing $100m' in excess card fees

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whatmeworry

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Re: Qantas denies pocketing $100 million from card surcharges

Someone needs to investigate Airline CC charges, as the airlines need to justify their true cost and show real transparency. Perhaps the airlines should make it easier to pay in cash, perhaps you could pay book the flight and pay at the airport or at a WW store?

Remember airlines make money they get from forward booking by banking the cash.
 

oz_mark

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Re: Qantas denies pocketing $100 million from card surcharges

Someone needs to investigate Airline CC charges, as the airlines need to justify their true cost and show real transparency. Perhaps the airlines should make it easier to pay in cash, perhaps you could pay book the flight and pay at the airport or at a WW store?

The RBA recently concluded an review of surcharging. What we are now waiting to find out is if they are going to place any restrictions on what the surcharges can be.
 

ChrisFlyer

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Re: Qantas denies pocketing $100 million from card surcharges

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.....
Wow - those businesses really need to shop around... when I applied for my personal side-business (with less than $50k/yr turnover), I was offered 0.98% for Visa/MC, 1.95% for Amex, and 2.98% for Diners... the only disadvantage being that the Signature/World/Corporate/International Visa and MCs attract higher fees (about 1.6-1.8%), with the exception of international MC/Visa cards, which cost 2.75% (have never processed any of these). ;)
 

one9

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Re: Qantas denies pocketing $100 million from card surcharges

Wow - those businesses really need to shop around... when I applied for my personal side-business (with less than $50k/yr turnover), I was offered 0.98% for Visa/MC, 1.95% for Amex, and 2.98% for Diners... the only disadvantage being that the Signature/World/Corporate/International Visa and MCs attract higher fees (about 1.6-1.8%), with the exception of international MC/Visa cards, which cost 2.75% (have never processed any of these). ;)

Many banks charge extra not just for Signature/World/Corporate/International but also for Platinum. These days nearly half the population seem to be using a Platinum card. And I am sure for frequent flyers, most would be using Platinum/Signature/Corporate cards and there would be many travelers using International cards.

Whilst I agree that Qantas would be making a profit from their credit card surcharging, I don't agree the profit would be as high as some people think. And if you took into account the fraud costs that Qantas would face from fraudulent use of credit cards, the profit would drop again.
 

Oneworldplus2

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Not sure if this has been posted, but thought it interesting to share on AFF.
If true, this cash cow could chop the QFi losses in half.

Consumer advocacy group Choice says Qantas is charging $100 million in excess credit card fees every year under the guise of covering processing costs.

Qantas charges $7.70 for credit card payments on domestic bookings, and four times that amount for international bookings.
The airline says it does not make any money from those fees.
"Qantas does not collect more in surcharges that it costs us to offer credit cards as a payment option," a Qantas spokesperson said.
"We also provide customers with alternatives to using credit cards."
The Reserve Bank's payments system board is meeting today, and Choice head of campaigns Matt Levey is hoping the central bank will introduce new limits on surcharges.
"Qantas was one of the first major Australian businesses to impose credit card surcharges following the Reserve Bank of Australia’s move to allow such charges from 1 January 2003," Mr Levey said.

Qantas 'pocketing $100m' in excess card fees - ABC News (Australian Broadcasting Corporation)
 
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bossreggie

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Re: Qantas denies pocketing $100 million from card surcharges

I think credit card fees should be dumped for ALL fares except Domestic Red E Deals.

IMHO it is ludicrous to charge me $30 when I have just spent $16k on an airline ticket.

Even travelling DOM.... Is it really necessary to charge $7.70 when I've just paid $1,100 return to SYD??

I'm happy to pay cash.... It's just not practical. My travel is usually so last minute that EFT/BPay are not suitable payment methods either. It really doen't leave much of an option.

Boss
 
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bossreggie

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Re: Qantas denies pocketing $100 million from card surcharges

Somebody tell me that this in NOT just ridiculous!!

That's for 2 pax MEL - LHR next week. Is the $60 REALLY necessary??

Flights:$28933.44 AUD
Card Payment Fee: ($30.00 x 2 passengers)$60.00 AUD
Total paid this transaction:$28993.44 AUD
 
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v8Statesman

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Re: Qantas denies pocketing $100 million from card surcharges

Somebody tell me that this in NOT just ridiculous!!
Flights:$28933.44 AUD
Card Payment Fee: ($30.00 x 2 passengers)$60.00 AUD
Total paid this transaction:$28993.44 AUD

Tried booking via P1 desk? have a whinge about the fee. Surly they have discretionary powers to waive it.]?
 

lovestotravel

Senior Member
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Sep 18, 2008
Posts
6,160
Re: Qantas denies pocketing $100 million from card surcharges

Somebody tell me that this in NOT just ridiculous!!

That's for 2 pax MEL - LHR next week. Is the $60 REALLY necessary??

Flights:$28933.44 AUD
Card Payment Fee: ($30.00 x 2 passengers)$60.00 AUD
Total paid this transaction:$28993.44 AUD

Should be higher for a transaction like that, that's a 0.2% merchant fee which is far less than the real cost of the transaction

Should be somewhere between $250-$350

Credit card fees should be the actual CC fee charged by the bank, not just a flat fee
 

trippin_the_rift

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3,898
Re: Qantas denies pocketing $100 million from card surcharges

I think credit card fees should be dumped for ALL fares except Domestic Red E Deals.

Agree that's a smart idea for many reasons.

No business would make that move however, because it looks like the 'old' pricing scheme was a rort.

QF should really call it an 'online benefit fee' or something vague to take the heat away from it being linked to the negativity related to credit card surcharges.
 
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bossreggie

Guest
Re: Qantas denies pocketing $100 million from card surcharges

Tried booking via P1 desk? have a whinge about the fee. Surly they have discretionary powers to waive it.]?

My PA does all the bookings online, ALWAYS at qantas.com.

It's more the principle. I can afford the $60.... I just think it is stupid to charge on premium fares.

Boss
 
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Flashback

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Re: Qantas denies pocketing $100 million from card surcharges

At least ex-UK there's no surcharge.
 

samh004

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Qantas
Platinum
Virgin
Red
Re: Qantas denies pocketing $100 million from card surcharges

I guess this comes down to the rich paying for the poor, or in the more common case, the other way around. If they charged the correct percentage on BR’s tickets above, the 'rich' would complain more, and seeing as they are where the sweet profits come from, Qantas wouldn’t want to get on their bad side.

I BPAY as much as I can to avoid the ridiculous $7.70 on my cheap tickets.
 
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bossreggie

Guest
Re: Qantas denies pocketing $100 million from card surcharges

I guess this comes down to the rich paying for the poor, or in the more common case, the other way around.

Sam....

I am unemployed and on a fixed income!!

I'm not one of those wealthy workers you hear about!!;)

Boss
 
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