Shocked at new JQ booking and service fees!

[MH_fan]

I just made some bookings for a JQ domestic flight and imagine my surprise when I saw that the credit card fees had jumped to $7.50 each way! DJ only charge $4.50 each way and QF charge $7.70 for a booking (one-way or return).
JQ are calling it booking and service fees. Excuse me? What service? I made the booking all by myself without any assistance from JQ, thank you very much. Also, aren't credit card fees only a maximum of something like 4% (for AmEx and Diners). Somehow, $15 (for a return trip) on a ticket that only costs $108 makes the credit card surcharge something like 14%! This is outrageous! Let's just say I've learnt my lesson and will no longer be choosing to fly JQ domestically.

 

[Mal]

We can all hope that things will change soon when the reserve bank finds credit card fees are extorniate. Jq don't care though, they will repackage it as something else. It is a total scam and the airlines need to be brought to account.

 

[pshepvic]

I just made some bookings for a JQ domestic flight and imagine my surprise when I saw that the credit card fees had jumped to $7.50 each way! DJ only charge $4.50 each way and QF charge $7.70 for a booking (one-way or return).
JQ are calling it booking and service fees. Excuse me? What service? I made the booking all by myself without any assistance from JQ, thank you very much. Also, aren't credit card fees only a maximum of something like 4% (for AmEx and Diners). Somehow, $15 (for a return trip) on a ticket that only costs $108 makes the credit card surcharge something like 14%! This is outrageous! Let's just say I've learnt my lesson and will no longer be choosing to fly JQ domestically.

There is currently no limit to the credit card fee that can be charged. But if you were paying $500 for a flight, then $15 is only 3%.

In any case, the ACCC is currently investigating credit card fees and I believe is due to provide some recommendations later this year.

It would be difficult to police however, as companies are charged different merchant fees depending on sales volume, how well they negotiate, etc. For example, from memory Telstra only pay 1.65% to Amex and Diners, and 0.85% to Visa and MasterCard (or it might have been 1.85/0.65 - one of those anyway!) Other smaller organisations may pay significantly more. So it would be hard for you to challenge someone to say that they're charging more than the merchant fee, as how would you really know.

 

[oz_mark]

There is currently no limit to the credit card fee that can be charged. But if you were paying $500 for a flight, then $15 is only 3%.

In any case, the ACCC is currently investigating credit card fees and I believe is due to provide some recommendations later this year.

It would be difficult to police however, as companies are charged different merchant fees depending on sales volume, how well they negotiate, etc. For example, from memory Telstra only pay 1.65% to Amex and Diners, and 0.85% to Visa and MasterCard (or it might have been 1.85/0.65 - one of those anyway!) Other smaller organisations may pay significantly more. So it would be hard for you to challenge someone to say that they're charging more than the merchant fee, as how would you really know.

Well the current mechanism to limit surcharges is useless, and it beggars belief that anyone in the RBA thought it could work in the first place.

There are two issues that the RBA is currently considering - one of which is whether there should be some mechanism (other than the current useless mescahnism) for limiting surcharges (one of which may be to allow the schemes to include a rule that limits surcharges to the costs of incurred by using the credit card). The other issue, which may not be so good for people who like rewarding programs, is whether the use of blended costs is appropriate, or whether premium cards (e.g. platinum) should be capable of being surcharged more than standard cards.

 

[samh004]

The other issue, which may not be so good for people who like rewarding programs, is whether the use of blended costs is appropriate, or whether premium cards (e.g. platinum) should be capable of being surcharged more than standard cards.

But surely if you pay more for a card, the fees and surcharges should be less, because you've already paid for them, not more.

 

[AdMEL]

I hope the RBA fixes their stuff up and only allows surcharges that reflect the cost of the Merchant Service Fee! The lost revenue will be packaged as something else though! Right up there with airlines is the 11% taxi surcharge!

 

[Sifor]

To avoid getting copped with these outrageous fees I've started to use their direct deposit method "POLi". I'm a little concerned since you enter your internet banking details in the "POLi" window so they could very well grab the login details; doubtful but you never know.. In any case, I only have $500 at any one time for internet use...

It is clearly price gouging, hopefully the ACCC fixes this soon.

 

[Stephen65]

It would be difficult to police however, as companies are charged different merchant fees depending on sales volume, how well they negotiate, etc. For example, from memory Telstra only pay 1.65% to Amex and Diners, and 0.85% to Visa and MasterCard (or it might have been 1.85/0.65 - one of those anyway!) Other smaller organisations may pay significantly more. So it would be hard for you to challenge someone to say that they're charging more than the merchant fee, as how would you really know.

The ATO only pay 1.25%/0.65% for Amex and Visa/MC. I would be amazed if an organisation as big as JQ was paying anything remotely near 4%. It's just a revenue raising fee.

 

[Hvr]

Right up there with airlines is the 11% taxi surcharge!

Yeah Cab Charge certainly know how to set extortionate fees.

I'd love to see extra fees set for cash, it's not safe, has to be stored, counted, banked etc. Whereas electronic transactions have much less risk and should be a lot cheaper than they are at the moment.

 

[Major]

I hope the RBA fixes their stuff up and only allows surcharges that reflect the cost of the Merchant Service Fee! The lost revenue will be packaged as something else though! Right up there with airlines is the 11% taxi surcharge!

And this rip off has been going on for decades !!!

 

[medhead]

Yeah Cab Charge certainly know how to set extortionate fees.

I'd love to see extra fees set for cash, it's not safe, has to be stored, counted, banked etc. Whereas electronic transactions have much less risk and should be a lot cheaper than they are at the moment.

Not defending cabcharge. But how much do you think it cost cabcharge to develop the first mobile electronic payment processing system to be installed in taxis? Remembering that their system was develop long before 3G and CDMA. I think that we have to acknowledge that cabcharge does have higher costs involved that a shop or the ATO.

Of course, that doesn't explain why they were giving out terminals for free. But the ACCC did take them to task over that.

And this rip off has been going on for decades !!!

What rip off?

 

[Smackbum]

$7.50? That's cheap!

I just booked a SYD/SIN flight on QF and the CC fee was $30. If it was my own money I would have used EFTPOS, but for work expenses they all go through Amex. Good thing the airfare was cheap, but that only makes the % of the fee look worse.

Why is Qantas pulling all this LCC cough if they want to maintain their reputation as a premium brand?

 

[UP4014]

There is currently no limit to the credit card fee that can be charged. But if you were paying $500 for a flight, then $15 is only 3%.

Yes, only double what the airline is charges by the cc provider. :mrgreen: Bargin

 

[UP4014]

What a thread, I agree with every post. :shock:

 

[stryker]

Why is Qantas pulling all this LCC cough if they want to maintain their reputation as a premium brand?

It's a bit like "fuel surcharges" on FF tickets (sorry if it's slightly O/T).

Today I went to book a QF 1-way award ticket SYD-CGK, but when I saw that it would cost me $254 + 25,000 points I thought "forget it". I can fly paid Y on a LCC for about $400, so why would I waste my time and money with QF? It seems these days that the only half decent QF award tix are domestic, as the "fuel surcharge" is a lot less.

As a comparison, I've just redeemed a 1-way Star business class ticket CGK-HNL for 27,500 miles, and the "taxes & charges" amounted to approx $50. QF is scamming and ripping off every Australian, but most seem oblivious to this fact.

 

[moa999]

just waiting for a poster to say:

Ah yes, but on my $16,000 First Class SYD-LHR return I only got charged $30 - 0.2%
Or on my $600 J Class SYD-MEL only $7.70 - 1.3%

--

so it is swings and roundabouts.
QF has previously said that $7.70/ $30 is an average.
But If $7.70 is an average QF DOM charge (at 2.5% a $310 fare), no way that average Jetstar fare can justify a $7.50 charge.