Surcharge for Credit Card transactions

[Paco]

Now that Professor Fels has got his way, from Jan 1 retailers can charge a surcharge for Credit Card transactions.

Which companies are going to have the dubious honour of being the first cabs of the rank? Well it looks like Qantas might be leading the charge if you believe what you read at http://www.theaustralian.news.com.au/common/story_page/0,5744,5786369%5E2702,00.html

Suggest we start a 'shame file' here and list any companies that whack on the charge and neglect to pass on the savings (price reduction) to the customers.

 

[dajop]

Whilst I can bear the cost for the pure convenience of credit cards, how much would cash handling costs increase if we all just decided to go back to cash? Extra security, money counting, etc etc. Imagine if we all paid QF in cash for the airfares how much would that add to the transaction cost? That's OK: "However, the Australian Consumers Association argues that adding a surcharge means the merchant no longer has to factor the cost of handling credit card payments into the price of their products. Therefore, prices of products should drop" Don't hold your breath.....

 

[oz_mark]

Credit Card Surcharge

This little news item appears on the Harvey World Travel site under news

Cheers

http://www.harveyworld.com.au/travelnews/index.cfm?id=1890&HomePage=1

Wednesday 05 February, 2003
Qantas and Qantas Holidays to add a card fee

QANTAS Holidays disclosed today that it’s going to apply a fee for credit card transactions from April.
Qantas said it too will be applying “a flat, nominal fee”, but is some weeks away from finalising details.
Confirming speculation in the wake of a Reserve Bank ruling allowing retailers to pass on to customers the cost of card company merchant fee, Qantas Holidays said the wholesaler will apply a 1% ‘service fee’ from about mid-April.
The actual implementation date depends on some technology issues.
It’s being called a service fee because it doesn’t cover total merchant fees.

 

[QF WP]

Agree with Dajop, for the convenience I'll pay 1% for the reduced risk of me having to drag cash around (and knowing that a travel agency would become another target for crooks whilst my fiancee or I might be inside). The premium paid for cashless society.

 

[kristo]

surcharges

Cabcharge have been charging a 10% surcharge on Credit Cards in Taxi Cabs for years.

 

[straitman]

Surcharge

I must agree with most that a 1% charge is by itself insignificant, however it's "another" charge / fee / tax we are all going to have to endure. By itself it's not much, but they all add up.