International Card Payment Fee increasing

[JohnK]

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

Per passenger per ticket! :shock: Yes I am sure Qantas is just recouping their costs.

Any way you look at it this is a nice little money spinner for QF. Do BPay transactions cost a company money? Can someone please explain why BPay transactions do not have a surcharge yet if you pay by credit card there is a flat fee for all credit cards. Do credit card companies charge Qantas a flat rate for each transaction?

Using a real simple example () like BNE-SIN return on an A333 and assuming that Visa/Mastercard levy 0.65% per transaction and is the preferred payment method by 60% of people, Amex levy 1.25% per transaction and is the preferred payment method by 30% of people, BPay is the preferred payment method by 10% of people (not sure what BPay costs) and the flight is full

Number of Seats            Flight Revenue  QF C/C Surchg    QF Act Payment Cst   Profit
30 Business (~$5,000)         $150,000         $  810            $1,147.5       $  337.5-
267 Economy (~$1,500)         $400,500         $7,200            $3,060         $4,140

297 Total Passengers          $550,500         $8,010            $4,207.5       $3,802.5

So in effect QF has profited by $3,802.50 from C/C surcharges on a BNE-SIN return.

Assuming that flight loads are consistently 85% on these services the revised profit is $3,232 and if this service operates 365 days/year the total profit from this one service is 365 *$3,232 = $1,179,680. This number may drop a little assuming that some people purchase their tickets from countries where surcharges are not levied on credit card payment.

Still not a bad profit for QF from one service. How many international services does QF operate?