International Card Payment Fee increasing

[oz_mark]

Seems there are more fees than just the FF related ones changing in December. Noticed this today

For bookings made before 1 December 2010:
Type of Booking Fee - per passenger per ticket
Australian domestic A$7.70^
Australian trans-Tasman A$7.70
Australian international A$25

For bookings made on or after 1 December 2010:

Type of BookingFee - per passenger per ticket
Australian Domestic A$7.70^
Australian trans-Tasman A$7.70
Australian International A$30

Schedule of Fees for bookings made from Australia

Yes, that's right - for international tickets the fee is going from $25 to $30.

 

[drewbles]

It's brilliant to see that Red Roo and other QF lurkers have paid attention to here and the media (them winning awards for ripping off people with CC fees).

Based on the size and risk exposure of QF, their merchant fees would be minimal. There's no way they're not making cash off these fees.

Listen up Red Roo. This is *not* a way to help customers be loyal (and don't pull the "but you can pay via other methods" line, as it just doesn't hold up when people know how merchant fees work; it's blatant profiteering).

</rant>

 

[Worldtraveller8888]

Totally agree. It's outrageous the CC charge, and is not a reflection their actual cost. I made a FF redemption booking a couple of months ago SYD-HKG, fees and taxes came to about $140, $25 of which was a CC fee. That equates to about a 21% credit card service fee!

 

[simongr]

Hmm - australian international at $30.

Let's assume QF are paying the CC companies 0.75% - that would equate to the following prices on int'l flights to say the UK:

F ($14K) - $105
J ($9K) - $67.5
PE ($4K) - $30
whY ($2K) - $15

So lets assume a full load who all pay by CC:

14F - 1470
52J - 3510
32PE - 960
255Y - 3825

Total fees - $9,765

Total charges - $10,590

 

[oz_mark]

simongr's numbers look as though Y passengers are subsidising J and F passengers. If they really need to have a service fee, why not make it a percentage of the payment amount?

 

[simongr]

Guess that offsets the subsidy that goes the other way

 

[ozavanti]

Perhaps it's getting close to coming up on IMF's radar after they finish with the banks and their gouging of fees.

I'm not holding my breathe with the ACCC given their lack of teeth... Small risk to QF for large return.

 

[NYCguy]

Guess that offsets the subsidy that goes the other way

I was about to write the same thing!

Let's never forget that the fares paid by pax in 1st and 2nd class subsidize the fares paid by the pax in steerage.

 

[Kendall Roy]

Now QF really are just taking the piss

Good work rubbing it in after the recent "enhancements"

 

[trippin_the_rift]

Red-roo is only here to try and minimize the fallout for Qantas's changes.

They are NOT here to help frequent flyers... don't be fooled.

 

[Mal]

Total fees - $9,765

Total charges - $10,590

The problem with your example is that it is a selective fee. Do other countries pay a credit card surcharge? Not many. So why should the pax flying LHR-SYDvv not pay a fee, but the pax SYD-LHRvv be slugged with the fee?

And seeing Qantas doesn't surcharge for BPAY payments, credit card payers are subsidising them. Also - shouldn't Qantas have to accept that credit card payments are the core of their business, and factor them into their fares???

It's yet another shonky tactic from Qantas.

 

[AnonymousCoward]

Hmm - australian international at $30.

Let's assume QF are paying the CC companies 0.75% -

I'd hazard a guess that 0.75% is pretty low. I'm sure Diners/Amex would be charging more than that...

 

[AnonymousCoward]

The problem with your example is that it is a selective fee. Do other countries pay a credit card surcharge? Not many. So why should the pax flying LHR-SYDvv not pay a fee, but the pax SYD-LHRvv be slugged with the fee?

Because regulations allow companies to stop cross-subsidization of people who pay by cheaper means.

And seeing Qantas doesn't surcharge for BPAY payments, credit card payers are subsidising them. Also - shouldn't Qantas have to accept that credit card payments are the core of their business, and factor them into their fares???

They are. It costs more to accept a CC payment compared to BPay, so they have built that into the pricing.

I don't agreee wth the flat fee - as that isn't related to the cost of providing the service.

 

[simongr]

And seeing Qantas doesn't surcharge for BPAY payments, credit card payers are subsidising them. Also - shouldn't Qantas have to accept that credit card payments are the core of their business, and factor them into their fares???

It's yet another shonky tactic from Qantas.

I dont agree with the fees - I was just pointing out that this is not some massive money spinner for QF as was initially suggested. In my example I have used a very low CC charge from the issuer - in fact the charge could be double that and QF wouldnt be covering costs.

I am undecided on the overall principle of the CC fee - businesses do incur additional costs by accepting CCs so why should a customer who doesn't use one be penalised by having the implied fee stuck into their ticket price.

I don't think it is a simple question - much as I would like to see the fees scrapped...

 

[Leumas]

Red-roo is only here to try and minimize the fallout for Qantas's changes.

They are NOT here to help frequent flyers... don't be fooled.

+1

Their job is make us believe their spin, nothing more, nothing less.

 

[Verde]

I agree.

The flat rate is further complicated in that if you change a booking, there isn't a credit card fee (though the change fee is extreme enough to more than make up for it). So my NTL-BNE flight I canceled a month ago ($55 ticket - $50 change fee) and turned into a SYD-AKL flight, at least saved me the credit card fee.

I know that you pay extra for flexibility to change, but in most areas of life it doesn't attract such costs as via the airlines. If changes are made online, it must cost very little to deal with, so I think such high fees to change tickets are unreasonable (especially a month out, I can understand a day or even a week out where it may be much harder to re-sell the seat, but a month out maybe $10 would be appropriate - or even make it $50 the day before, $49 two days before, $48 three days before - I could go for that a lot better than over the top $50).

Because regulations allow companies to stop cross-subsidization of people who pay by cheaper means.



They are. It costs more to accept a CC payment compared to BPay, so they have built that into the pricing.

I don't agreee wth the flat fee - as that isn't related to the cost of providing the service.

 

[simongr]

Red-roo is only here to try and minimize the fallout for Qantas's changes.

They are NOT here to help frequent flyers... don't be fooled.

+1

Their job is make us believe their spin, nothing more, nothing less.

What on earth has this to do with the CC fees?

 

[jsd]

So how many other airlines actually charge a fee that is so high? A quick look suggests that the other carriers' payment fees are a lot less:

Qantas: $30 per booking :!:

V Australia: $15 Per Booking

Jetstar: $10 Return Booking

Virgin/Pacific Blue (Ex. AU): $12 Return

Tiger (TR Flights Ex. AU): $12 SGD Return

I'm sure there a lot more carriers that charge CC fees, but I don't want to look up any more but you get the point :shock:

Josh

 

[oz_mark]

Singapore Airlines charge $25 for bookings from Australia.

 

[Austman]

Singapore Airlines charge $25 for bookings from Australia.

Are you sure? I bought an SQ ticket last week and there was no CC surcharge for me.

Airline Fuel and Insurance Surcharge(YR) was $25.00