More surcharge rip off, tickets paid for on c/card

[wallacej]

I normally only buy one ticket at a time, so this normally doesn't bother me but this week I have taken my kids on a MEL-SYD trip with me.

The surcharge for allowing me to buy 3 tickets with my credit card (not sure of any other way to be able to pay!) was $18.



Payments by credit or debit card attract a surcharge of $3 AUD per passenger per flight segment, which will be added to the total price of your fare once you select your credit card type. Find out more about credit and debit card surcharges.

 

[Happy Dude]

Yep that sure stinks wallacej.

IIRC, at the time QF introduced a credit card fee, DJ had a very large and prominent billboard at MEL proclaiming that they'd never introduce a fee for credit cards. A surcharge is not a fee I suppose......

 

[albatross710]

Virgin being based in Brisbane may have employed someone from Brisbane City Council. BCC may not increaste "rates" but they certainly do like to introduce "levies"

garbage collection
bushland protection
environment levy
water usage
fire services


Another example of things that used to be included in a price but now have levies.

 

[wallacej]

Yep that sure stinks wallacej.

IIRC, at the time QF introduced a credit card fee, DJ had a very large and prominent billboard at MEL proclaiming that they'd never introduce a fee for credit cards. A surcharge is not a fee I suppose......

And now that this has got me started, A$3 charge per sergment per passenger is not just expensive, but could it be illegal.

Please someone correct me if I am wrong, but wasn't the idea of allowing retailers etc to pass on the credit card surcharge on credit card purchases something that the Reserve Bank allowed to allow greater transperancy in credit card fees charged.

For the most part retailers do not charge a fee on credit card transactions. Some do charge 1-2% on Amex or Diners transactions, which is acceptable as the retailer is charged a higher amount for accepting those cards.

Given that the airlines are probably charged less than 1% by the bank, I fail to see how charging $3 is acceptable. Based on my $79 MEL-Syd ticket, $3 equates to 3.79% of the fair. For the airline to be out of pocket my fair would have to be in excess of $300... I would imagine not too many of those fairs sold on DJ.

Now I ask firstly, is this fair for all punters, or just those that pay more than $300 per segment, and secondly I ask, is this legal. Also considering that there are no other options available to make payment.

In the retail world, the price of credit card transactions is built into the price of the product, averaged with cash transactions. This is why some only charge extra for Amex & Diners.

I don't mind cost recovery, but this is outrageous, and now makes me think about these other surcharges, fines and levies (although these are built into the ticket price on Domestic on most).

 

[albatross710]

Last time I looked at it, it was worded like "merchant allowed to recover the cost of the transaction".

I recall it also included the fixed costs ie terminal rental, merchant gateways etc which allowed for the charge to be higher than just the % merchant fee.

I think wallacej might be onto something as the merchant charge of $300 ticket would be the same whether it is for two segments or three...the banking transaction is still one entry of $300.

Anyone got a consumer strategy lined up?

 

[simongr]

Does this help?

ACCC website - how to complain

 

[dajop]

THe other mob are at least a little better, as they allow BPAY payments for flights booked (IIRC) more than 14 days from travel. However, if you want to get a $115 red-e-deal within that period, at a flat $6.60 you'll be paying a handsome 5.7% CC fee for the privilege. At least it's not sector based though.

I know airlines run with complicated IT systems, but how hard is it to implement a % based fee on transactions like most other businesses do if they want to charge a cc surcharge?

 

[wallacej]

Does this help?

ACCC website - how to complain

And that is where I will be heading if what I am saying has any basis... won't waste their time if am wrong though... we know how busy and constructive they have been when it comes to fuel prices!

 

[JohnK]

Given that the airlines are probably charged less than 1% by the bank, I fail to see how charging $3 is acceptable. Based on my $79 MEL-Syd ticket, $3 equates to 3.79% of the fair. For the airline to be out of pocket my fair would have to be in excess of $300... I would imagine not too many of those fairs sold on DJ.

Last night I purchased 2 SYD-CBR returns on DJ at $48 per sector. Total cost for 4 sectors $192 + $12 credit card surcharge. The credit card surcharge alone is 6.25% of the cost of the airfare. I would be much happier if the airfare was advertised at $51 a sector with no credit card surcharge.

Cost recovery? Don't think so. Blatant rip-off? Spot on....

 

[kpc]

I just booked 2 one way flights for my parents on DJ and had to pay 2x $3 credit card surchage:evil: Last year, it was $2 per sector, so it is a 50% rise. The $3 surcharge represented nearly 4% of the fare...what a rip off! I cannot find any other payment option such as Bpay which QF offer to avoid this ripoff surcharge!! I use my Diners card so that DJ gets charged the most commission !!:mrgreen:

 

[stryker]

I just booked 2 one way flights for my parents on DJ and had to pay 2x $3 credit card surchage:evil: Last year, it was $2 per sector, so it is a 50% rise. The $3 surcharge represented nearly 4% of the fare...what a rip off! I cannot find any other payment option such as Bpay which QF offer to avoid this ripoff surcharge!! I use my Diners card so that DJ gets charged the most commission !!:mrgreen:

Indeed, it may be a ripoff, but it pales into insignificance when compared with the fees and "taxes" imposed by the master of all ripoff merchants, Qantas.

For example, I checked the cost of a "free" ticket on QF DPS-SYD recently and the charges amounted to $250+, and they also wanted to rob me of 25,000 points.

And you're complaining about DJ? Their FF charges are very good compared with QF. I'm even thinking of putting most of my CC points with velocity.

Much better value IMHO.

 

[Mal]

To get around this, has anyone considered pre-buying a Gift voucher for DJ via your credit card (no surcharge that I can see), then waiting the few days for it to turn up and then booking your flight using the voucher?

You even get to make a phone booking for your flight for no extra charge

(And just like Qantas, there are no Credit Card surcharges for NZ Domestic flights. Wonder why?)

 

[JohnK]

To get around this, has anyone considered pre-buying a Gift voucher for DJ via your credit card (no surcharge that I can see), then waiting the few days for it to turn up and then booking your flight using the voucher?

So if this theory works we just buy each other gift vouchers and avoid credit card surcharges. Anyone willing to test the theory and post the results on AFF?

 

[wallacej]

So if this theory works we just buy each other gift vouchers and avoid credit card surcharges. Anyone willing to test the theory and post the results on AFF?

I think I might just give this a go..what a great suggestion... only problem will be waiting on the phone, don't understand why they wouldn't allow the voucher to be used online

 

[Mal]

So if this theory works we just buy each other gift vouchers and avoid credit card surcharges.

You should be able to buy one for yourself. (Or buy one for a pet, family member or even "pat the postbox" )
Virgin Blue > Vouchers

To redeem, you need to know the voucher ID and a question/answer set up when you purchased the voucher.

You might even be able to get a >10 voucher purchase discount

A couple of caveats though. As the fare is purchased via the call centre, I believe you must change it via the call centre (but not 100% sure here). Additionally, cancellations or changes made through the call centre may have an additional charge over the ones done online.

 

[JohnK]

You should be able to buy one for yourself. (Or buy one for a pet, family member or even "pat the postbox" )
Virgin Blue > Vouchers

Either way it sounds like a great suggestion and is most definitely worth a try. I don't mind waiting on the phone to book and if it will save the credit card surcharge then all the better.

 

[wallacej]

I went through the process of buying the voucher. It seems that the most you can buy is $1000, but I suppose you could buy multiple $1000 vouchers.

No credit card fee, and visa, m.card, amex and diners are all accepted.