Qantas says Jetstar doesn't levy credit card surcharges - but a 'comfort fee'

[busissi]

What comfort? If it wasn't so pathetic I'd be screaming with laughter!

 

[burmans]

Yes! About sporting tickets! Purchased some rugby tickets the other day. Credit card surcharge was included in the quoted price. All good. Then when I select my tickets I have to choose a ticket delivery option with associated fee. A $6.15 fee for me to download and print the tickets myself. Wtf!!! Took the $7.15 option for them to post out the tickets.

I think this is a good example. There are two basic issues here
- fees you can't avoid
- fees you can (and hence the case can genuinely be made that additional costs of that type of service should fall on the users)

I dont really have so much of an issue with those that are relatively avoidable, I can make a descision as to whether to make use of that additional service and price is one factor. Of course though some are regulated (e.g. CC fees) and some are also difficult to avoid in reality.

But those that really annoy me are those I cant avoid. LAst time I looked they charged a fee for all options for sporting tickets so they arent avaoidable, in my view at least 1 option should be free (and the cost for this cheapest as part of the "price"). In fact I thought we had we had some regulation about this but maybe Im mistaken.

 

[Moody]

What comfort? If it wasn't so pathetic I'd be screaming with laughter!

Shhhhh!!! You'll wake juddles up again.

To be fair to Qantas they don't explicitly call the CC fee a comfort fee, but try to vaguely associate it with a category they call "comfort and convenience". Unfortunately (apologists aside) they fail spectacularly to fool anyone that it is anything more than an excuse to jack up the profit on the cheaper fares.

 

[Mattg]

To be fair to Qantas they don't explicitly call the CC fee a comfort fee, but try to vaguely associate it with a category they call "comfort and convenience". Unfortunately (apologists aside) they fail spectacularly to fool anyone that it is anything more than an excuse to jack up the profit on the cheaper fares.

It's interesting that while Jetstar's fares are cheaper than the average Qantas fare, the credit card fee (*cough* "comfort fee") is also higher.

 

[cherft]

O-o-o-h!!
we just need to get over it.
EVERYBODY, from the government to the smallest home-visit technician, now gouges us for every cent they can, on every lurk they can find.
in the end, I don't care any longer where the charge is. I check out all the charges when (say) booking a seat, add them all together to make "the cost of doing business" and then do the same with competitors. Then I am able to make a buy decision based on the esoterics such as comfort and winelist.
i acknowledge it's not altogether a free market, but the airlines are big and prominent enough to have to at least give a nod to market forces.

 

[amp-qld]

I think this thread has died. Just disappointed that it still carries the incorrect title. Qantas never said that this was a "comfort fee". That was an invention by the usual reporters trying to make a story.

As someone else did quote the original statement from Qantas, the airline came extremely close to saying it and the only inference is that it is a convenience and comfort fee.

As I understand it, the CC companies charge a percentage based fee of less than 1%. What I object to is the use by the airlines of a fixed fee which penalises small purchases (such as fees on Rewards seats and short domestic flights). There is also no justification whatsoever for them charging per person per flight. Their cost is purely on a per transaction basis. The fact that there are fee free options if you don't pay with a credit card means that, whatever they call it, it IS a credit card fee. Incidentally, I often find that Poli won't work. The airlines blame my bank and my bank blames the airline.

 

[ozdenis]

Every time I read about the airlines charging exorbitant credit card fees, and getting away with it, it makes my blood boil. And it surprises me no one on this site has compared these airline fees with the taxi industry credit card fee situation. Cabcharge has in the past few months been FORCED BY GOVERNMENTS (Victoria and NSW) to reduce their previous 10% taxi credit card transactions to a maximum 5%. And those fees are based on the actual taxi fare, not a set figure where the lowest fare passenger was subsiding the higher fare passengers. Why have the governments only acted against Cabcharge and not the airlines??? Fancy paying a $30 credit card fee on a $60 transaction!!! From my personal experience in the taxi industry, the great majority of passengers were happy to pay the credit card fee for the convenience or to overcome the fact they did not have the cash. That did not stop the "government employed consultants" recommending the fees be reduced. In addition, a taxi passenger was not forced to pay any fee because they had the choice to pay in cash. Not so with airline bookings. Totally unfair.

 

[apj01]

Comfort fee sounds like the term - Comfort women - that the Japanese used during the war for prostitutes. Should we draw any analogies?

 

[apj01]

Its a little while since I booked with QF or J*, but last time i did, I paid via BPay, which there was no charge. But my BPay account is linked with my c/card that earns QF points. Thus, I earned the points with no C/Card fee.

Has this changed?

 

[TiredOldFlyer]

As I understand the consumer law the customer must be fully aware of any credit card charges before entering into
an agreement or contract to purchase and must be made aware of the total cost. (Eg Service Stations must display
any card surcharge on the pump )
The comfort/convenience is purely replacing the credit card charge to comply with the Australian Consumer Law.
Of course if "Entering into Agreement" is considered to be when you start the booking procedure any fees/charges coming
later are contrary to the spirit of the Act.
Who wants to take on Qantas ?

 

[dajop]

As I understand the consumer law the customer must be fully aware of any credit card charges before entering into
an agreement or contract to purchase and must be made aware of the total cost. (Eg Service Stations must display
any card surcharge on the pump )
The comfort/convenience is purely replacing the credit card charge to comply with the Australian Consumer Law.
Of course if "Entering into Agreement" is considered to be when you start the booking procedure any fees/charges coming
later are contrary to the spirit of the Act.
Who wants to take on Qantas ?

Following this theme, the European method is a good solution. On the very first screen of LCC's when pricing flight it shows the full cost:

eg. Easyjet, Ryanair:

 

[andreas]

Sorry but I don't agree that the credit card surcharges should be revenue for the airline. The credit card surcharge should accurately reflect the transaction cost of paying by credit card. A credit card fee should not be revenue for the airline. If they want to make more money, they should increase fare prices and advertise the full price upfront. I do agree that it wouldn't be fair if one airline did this and not the others, but they should all be forced to do this - then the playing field would still be level.

Exactly. This is akin to mandatory tipping in restaurants "because the waiters don't make enough". Pay them a fair wage then, and reflect the cost in the price of the food up-front! Chances are we'll still eat there, but we'll feel less like being treated like idiots. It's the same with the credit card surcharges - it's not like the extra cost would make us change airlines (in most cases!) but it wouldn't come across as so sneaky and under-handed.

PS: Knowing that I can't change anything anyway, I tend to look on the bight side these days: use a credit card with a good points earn rate, so at least you're getting a little something back for the extra spend.

 

[PeteMac007]

I've just reported Jetstar to the ACCC. I direct deposited the fare to avoid the 11% gouge.

they never issued my tickets, returned my money two weeks later and cancelled my flights

Carlos admitted the remittance looked correct but refused to reinstate my cancelled flights or investigate

They don't have a failsafe method where you can avoid their gouge.

Disgusted!

 

[MEL_Traveller]

I've just reported Jetstar to the ACCC. I direct deposited the fare to avoid the 11% gouge.

they never issued my tickets, returned my money two weeks later and cancelled my flights

Carlos admitted the remittance looked correct but refused to reinstate my cancelled flights or investigate

They don't have a failsafe method where you can avoid their gouge.

Disgusted!

Please let us know how this turns out!

Have you also contacted your state Consumer Affairs Office? They might be able to assist more quickly than the ACCC.

The Airline Consumer Advocate should also be on your list. While her ability to act is somewhat limited (the ACA is usually bound to make sure the airline has complied with its customer charter), I believe she personally takes charge of any complaints and may even contact you to try and sort things out.

 

[Mattg]

I've just reported Jetstar to the ACCC. I direct deposited the fare to avoid the 11% gouge.

they never issued my tickets, returned my money two weeks later and cancelled my flights

Carlos admitted the remittance looked correct but refused to reinstate my cancelled flights or investigate

They don't have a failsafe method where you can avoid their gouge.

Disgusted!

Good on you. If more people do this, they might finally get the message.

 

[coco50]

The only way any merchant can defend any CC fee is to recover what the card provider charges the merchant. I am sure that most airlines gouge customers who pay by CC. The only away to avoid this is to pay by debit card or BPay.

There are many retailers who should offer substantial discounts for customers using CC. Consider a 24/7 retailer like a 7 11 store or petrol retailer with a single person on duty. You fill up with petrol for $100 and offer a CC. If I owned such a business I would not accept cash Imagine 2:00 am in comes a masked druggie with a weapon ordering the attendant to empty the till. If it's full of CC receipts he gets nothing.

Also consider your local council who charges a fee for CC payment of rates. Pay the rates quarterly with $10 notes. This forces the council to bank the cash. They should offer a discount for CC payment. Ditto, Airlines.

 

[PeteMac007]

Good on you. If more people do this, they might finally get the message.

turns out tiger have a sale so i will price beat them! ha!

 

[JohnK]

Reminds me of a funny story.

A friend was in Fiji recently and stayed at one of the island resorts. They had lunch or dinner and the time to pay came.

"How would you like to pay?"
"By credit card"
"There is an 8% surcharge to pay by credit card"
"Ok I will pay by cash"
"We don't accept cash"
"Here is my payment in cash. Still legal tender as far as I am aware" and walks away

This surcharge rubbish is getting out of control.

 

[Deleted member 6404]

There would be no uproar, the masses have lost the will to fight and will cope what ever the big multi nationals dish out, just don't forget the lube

 

[Deleted member 6404]

A lot of businesses give you a discount for purchasing online instead of in person or over the phone. And no credit card surcharge.

Credit cards are a cost of doing business. How the Reserve Bank ever approved credit card surcharges is beyond me.

And I bet you that their profit margin is MUCH greater than that of an airline.

Airlines are cutthroat businesses. If you consider "profit" to be bad, then at least acknowledge that your local corner store "gouges" you a hell of a lot more than QF. As does your plumber, the supermarket, the tyre shop, and your local bottleshop

AHHH yes That's Capitalism for ya and all around the world its starting to collapse