Credit Card Surcharges with Virgin Australia

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jarman6

Junior Member
Joined
Sep 27, 2011
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Qantas
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Virgin
Platinum
I sent this note to Mr Borghetti after being promised a 'full refund' after needing to cancel a 'Freedom' booking 1 hour after making it.....

I hope this email finds you well.

I recently made a Freedom Economy booking to Europe for my wife, child and infant.

Totally my fault (rookie error) but didn’t realise I wouldn’t have access to an upgrade request with a Freedom Fare, VA Flight Number operated by EY.
The lovely lady in the Platinum Call Centre talked through a number of options clearly outlining that as I had booked within the hour I was entitled to a full refund to
my travel bank of AMEX.

She then transferred me to the Velocity Call Centre where I booked SYD - ROME - MADRID - SYD using points and paying $1200 odd in taxes.

I was then transferred back to the Platinum call centre to refund my original Freedom fare.


However, the lady said I was not eligible for a refund on the credit card fee. I was a little confused, as firstly I was promised a full refund but - and most importantly - if AMEX is charging you 1.3% on my $10,500 ($137), surely if it is refunded AMEX are not charging you the 1.3% on the transaction amount.

Therefore you are profiteering the $137 CC fee originally charged?

Overall, we have been ravings fans since leaving Qantas in March 2014. My wife and I are both Platinum FFs and its just a shame we continue to see our benefits diminish and experience examples of profit before goodwill for high value and loyal customers.


This has left a bit of a sour taste in my mouth after a pretty good experience overall tonight.


and then received what I thought was a pretty poor response to a Platinum frequent flyer....... is loyalty just worthing nothing to business anymore?

Dear Mr. X,

Thank you for taking the time to share feedback of your recent experience. Mr Borghetti has asked me to respond on his behalf.



We value your patronage as a Platinum member and I am so sorry to hear that you are disappointed that we are unable to refund the credit card fee of $137.24AUD.


Card payment fees are charged per booking and is non-refundable. The card payment fee covers a range of costs, activities, fees and charges in relation to the booking, including (among other things) the reasonable costs of accepting card payments.


Whilst I appreciate that you cancelled your booking on the same day as the transaction was made, the cost incurred by the airline for the transaction on 5 October 2016 is still charged and absorbed and cannot be refunded.


Virgin Australia caters for a diverse range of guests travelling for many different purposes. We make every effort to ensure our fare rules and conditions are understandable at the time of booking.

I again apologise for any disappointment, and have passed your comments on to our Revenue Management team for their review

We appreciate your continued support of Virgin Australia and look forward to welcoming you on board in the near future.

Kind regards,
 
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I sent this note to Mr Borghetti after being promised a 'full refund' after needing to cancel a 'Freedom' booking 1 hour after making it.....

I hope this email finds you well.

I recently made a Freedom Economy booking to Europe for my wife, child and infant.

Totally my fault (rookie error) but didn’t realise I wouldn’t have access to an upgrade request with a Freedom Fare, VA Flight Number operated by EY.
The lovely lady in the Platinum Call Centre talked through a number of options clearly outlining that as I had booked within the hour I was entitled to a full refund to
my travel bank of AMEX.

She then transferred me to the Velocity Call Centre where I booked SYD - ROME - MADRID - SYD using points and paying $1200 odd in taxes.

I was then transferred back to the Platinum call centre to refund my original Freedom fare.


However, the lady said I was not eligible for a refund on the credit card fee. I was a little confused, as firstly I was promised a full refund but - and most importantly - if AMEX is charging you 1.3% on my $10,500 ($137), surely if it is refunded AMEX are not charging you the 1.3% on the transaction amount.

Therefore you are profiteering the $137 CC fee originally charged?

Overall, we have been ravings fans since leaving Qantas in March 2014. My wife and I are both Platinum FFs and its just a shame we continue to see our benefits diminish and experience examples of profit before goodwill for high value and loyal customers.


This has left a bit of a sour taste in my mouth after a pretty good experience overall tonight.


and then received what I thought was a pretty poor response to a Platinum frequent flyer....... is loyalty just worthing nothing to business anymore?

Dear Mr. X,

Thank you for taking the time to share feedback of your recent experience. Mr Borghetti has asked me to respond on his behalf.



We value your patronage as a Platinum member and I am so sorry to hear that you are disappointed that we are unable to refund the credit card fee of $137.24AUD.


Card payment fees are charged per booking and is non-refundable. The card payment fee covers a range of costs, activities, fees and charges in relation to the booking, including (among other things) the reasonable costs of accepting card payments.


Whilst I appreciate that you cancelled your booking on the same day as the transaction was made, the cost incurred by the airline for the transaction on 5 October 2016 is still charged and absorbed and cannot be refunded.


Virgin Australia caters for a diverse range of guests travelling for many different purposes. We make every effort to ensure our fare rules and conditions are understandable at the time of booking.

I again apologise for any disappointment, and have passed your comments on to our Revenue Management team for their review

We appreciate your continued support of Virgin Australia and look forward to welcoming you on board in the near future.

Kind regards,

Not surprised. I recently reached out via email, and basically got told to sod off. Which I'll do (both on the flying and non-flying fronts).
 
Card payment fees are charged per booking and is non-refundable. The card payment fee covers a range of costs, activities, fees and charges in relation to the booking, including (among other things) the reasonable costs of accepting card payments.
My understanding of the regulations is that Card Payment fees can only recover a clearly defined notion of the 'reasonable cost of accepting card payments.' If they are saying they are charging other things as well, forward their response to the ACCC for investigation.
 
My understanding of the regulations is that Card Payment fees can only recover a clearly defined notion of the 'reasonable cost of accepting card payments.' If they are saying they are charging other things as well, forward their response to the ACCC for investigation.

Yep, forward to ACCC. It seems like a clear cut confession that credit card surcharges are covering other aspects of the booking process.
 
Just on refund of the fee itself, I used to have a merchant account with AMEX, and part of the agreement was that if a transaction is refunded to the customer (even in full), the merchant still pays the transaction fee regardless. Visa and MasterCard were different – as a merchant you got back around 50-60% of the original transaction cost, but were still out of pocket. The 'among other things' reply from Virgin Australia is the exact wording they were using on the website before the ACCC changes, so I suspect you've received a copy-paste response in this cas
 
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