The most ridiculous reward booking cancellation fee

[roby]

I don't see ACCC as too weak. Unless perhaps you mean they are too weak to overturn their previous decision. The ACCC introduced credit card fees to make us, the consumer, more aware of the real cost of credit card points earning. Does anyone remember that gravy train? It's been an abject failure, points earning has instead just been continual slashed from credit cards, despite us knowing the true cost of earning those points with the credit card fees.

This is the thing. Why do consumers need to know the true cost of the merchant fee? We don't know how much airlines pay for fuel. Are they supposed to disclose the true cost of fuel? Both are business expenses and I don't see any difference.

 

[CaptJCool]

The credit charge surcharge is by Gillard legislation. It says something like.
You can't price it into your final price. You can choose to not charge it. If you choose to charge it, it's merchant fee cost plus reasonable additional cost for having the facilities to charge it..... Go figure. It's why QF can charge $30 flat.
ACCC are the administrative body who are meant to chase up and/or prosecute the overcharging cases.

 

[basso]

I don't see ACCC as too weak. Unless perhaps you mean they are too weak to overturn their previous decision. The ACCC introduced credit card fees to make us, the consumer, more aware of the real cost of credit card points earning. Does anyone remember that gravy train? It's been an abject failure, points earning has instead just been continual slashed from credit cards, despite us knowing the true cost of earning those points with the credit card fees.

Nothing to do with the ACCC. All the ACCC cares about is that any surcharge is properly disclosed. The RBA was responsible for forcing the credit card companies to remove the no surcharge rules.

 

[basso]

The credit charge surcharge is by Gillard legislation. It says something like. You can't price it into your final price. You can choose to not charge it. If you choose to charge it, it's merchant fee cost plus reasonable additional cost for having the facilities to charge it..... Go figure. It's why QF can charge $30 flat. ACCC are the administrative body who are meant to chase up and/or prosecute the overcharging cases.

This is just rubbish, and has nothing to do with what actually happened. The RBA enabled surcharging, and it wasn't done through legislative changes.

 

[Deleted member 29185]

I slightly disagree with this. Merchant fees are simply a business cost and should be priced in the fares.

I presume your second sentence is what you slightly disagree with in my post. Perhaps I should have made my thoughts clearer. That is I prefer merchants recover the genuine cost of the CC transaction from the person paying with a card, rather than slugging everyone regardless of whether they use a card or pay cash.

 

[dajop]

That is I prefer merchants recover the genuine cost of the CC transaction from the person paying with a card, rather than slugging everyone regardless of whether they use a card or pay cash.

Almost agree with you. I would change "genuine cost of the CC transaction ..." to "genuine cost differential of the CC transaction ..." Studies have show cash transactions are far from free there are transaction, counting and security costs associated with cash.

If ATO charges 0.42% and Aldi 0.5% for Visa/MC that shows where they should be for larger businesses not 1.5% for major hotel chains or random flat fees for airlines.

 

[tinkybelle]

I also object to the fact that If I book a reward like SYD_DPS and the tax is $A48 if I purchase 2 they charge me $30 per person cc fee
but if I book separately they charge nil.
surely as it is one booking the $30 fee should apply once.
but NO they say each charge is individual
so therefore why is anything charged if each charge is $47?
riiiipoff

 

[medhead]

The credit charge surcharge is by Gillard legislation. It says something like.
You can't price it into your final price. You can choose to not charge it. If you choose to charge it, it's merchant fee cost plus reasonable additional cost for having the facilities to charge it..... Go figure. It's why QF can charge $30 flat.
ACCC are the administrative body who are meant to chase up and/or prosecute the overcharging cases.

Gillard legislation??? Yeah right? The changes were introduced in 2003. Gillard was in the shadow cabinet responsible for Reconciliation and Indigenous Affairs and Health in 2003. Why would she introduce legislation about credit card payments and why in the hell would John Howard have passed it.

 

[Eggsbenedict]

I also object to the fact that If I book a reward like SYD_DPS and the tax is $A48 if I purchase 2 they charge me $30 per person cc fee
but if I book separately they charge nil.
surely as it is one booking the $30 fee should apply once.
but NO they say each charge is individual
so therefore why is anything charged if each charge is $47?
riiiipoff

Yep! I have done plenty of single bookings due to this reason.

 

[roby]

I presume your second sentence is what you slightly disagree with in my post. Perhaps I should have made my thoughts clearer. That is I prefer merchants recover the genuine cost of the CC transaction from the person paying with a card, rather than slugging everyone regardless of whether they use a card or pay cash.

I know what you mean but like I said, it's part of a business cost just like when you don't check in a bag or don't eat a meal, you don't get a discount. If you are slimmer than others, you won't get a cheaper ticket even though you are costing airlines less fuel. Credit card use should make no difference. You have the option of using a card but if you don't, you won't get a discount.This was how the world operated until some airlines started to charge fees for bags, meal, and credit card fees, and at the beginning they were quite honest about it and they called it ancillary revenue, ie revenue.

Businesses look at their costs as a whole and price their products accordingly, including merchant cost.

 

[CaptJCool]

Credit Card Reform - What does the National Consumer Credit Banking Reform mean for you? | Credit Card Finder



RBA: Reforms to Payment Card Surcharging – Questions & Answers



New RBA rules to cut card surcharges - ABC News (Australian Broadcasting Corporation)

David Murray inquiry calls for credit card surcharge ban | afr.com

https://www.choice.com.au/consumer-advocacy/campaigns/credit-card-surcharges

The Gillard Labour Govt introduced a series of measures around credit card reform in 2013 and the RBA Changed their standard In the same timeframe - that's such an amazing coincidence - who would have thought?

I'm happy to sit corrected on detail. There's diplomatic ways of doing so but this must be the weekend for guns ablazing...

The fact these outrageous credit card Surcharges persist today is the key theme so let's not get side tracked from this.

 

[medhead]

The credit card reforms were introduced in 2003. You've linked a whole heap of stories about modifications to those reforms. The title of those links include ideas like banning credit card surcharges and putting a cap of the surcharges. So once again, No, Gillard did not introduce credit card surcharges. But let's not get sidetracked by false accusations.

 

[edy4eva]

OK, so I have a reward booking for SYD-LAX in business one way. The tax portion is $120. Velocity charges a credit card fee of $30 for taxes over $50. In this case, the amount charged to my credit card is $150 including a 25% credit card fee.

The fare rules say cancellation fee is $60. When you cancel, they will tell you that because the fee is over $50, I will need to pay $30. In reality the cancellation fee is $90 including a 50% credit card fee.

Now get this. When they refund the taxes they don't refund the $30 credit card fee. So in reality the cancellation fee is not $90 but $120.

I cancelled an award just last week, had to pay $60 to get the refund. Seems like you got a bad apple at the call centre.

As for the $30 fee when booking, it does state as a non-refundable charge.

 

[roby]

I cancelled an award just last week, had to pay $60 to get the refund. Seems like you got a bad apple at the call centre.

Incidentally, out the blue, someone from the offshore call centre called me again this morning about this charge and confirmed the $30 fee is only charged once. According to him, if you have paid more than $50 taxes you will have already been charged $30 when you book it, you won't get charged again when you cancel it. But if you haven't been charged, ie taxes less than $50, you will be charged a $30 fee when you cancel it. This is all very confusing and certainly different again from what Guest Relations told me. Guest Relations refunded me $30 even though I had never paid it when booking it as taxes were below $50.

As for the $30 fee when booking, it does state as a non-refundable charge.

Which effectively means the cancellation is $90 whichever way you look at it. Some agents might even charge $120.

 

[edy4eva]

Which effectively means the cancellation is $90 whichever way you look at it. Some agents might even charge $120.

I think extra baggage / seating charges are also non-refundable. These are extra services marketed and sold at a set price and cannot be considered part of the cancellation fees.

VA need to review their (whatever they call it) $30 fee to nill. Their (as well as QF's) argument that this is a service/payment charge is a lie because many airlines don't have a similar fee on award bookings.
VA also need to either stop outsourcing their velocity call centre to MNL OR hire/train their staff there. I heard more than a dozen different excuses (all made up) on an issue over as many phone calls.

The cherry on top and most recent was when trying to redeem points on EY F. First agent said no seats available. Second agent said 1 seat available. Third agent said 2 seats available but quoted a much higher number of points required due to "choosing to book a domestic connection in a class other than F". Fourth agent like third but insisted they need to be booked separate despite telling them I have booked and travelled an INT-DOM EY-VA itinerary using VA points.

I gave up after wasting hours -almost a day worth on something that I ended up booking through AA in under 10 minutes.

 

[roby]

I think extra baggage / seating charges are also non-refundable. These are extra services marketed and sold at a set price and cannot be considered part of the cancellation fees.

VA need to review their (whatever they call it) $30 fee to nill. Their (as well as QF's) argument that this is a service/payment charge is a lie because many airlines don't have a similar fee on award bookings.
VA also need to either stop outsourcing their velocity call centre to MNL OR hire/train their staff there. I heard more than a dozen different excuses (all made up) on an issue over as many phone calls.

The cherry on top and most recent was when trying to redeem points on EY F. First agent said no seats available. Second agent said 1 seat available. Third agent said 2 seats available but quoted a much higher number of points required due to "choosing to book a domestic connection in a class other than F". Fourth agent like third but insisted they need to be booked separate despite telling them I have booked and travelled an INT-DOM EY-VA itinerary using VA points.

I gave up after wasting hours -almost a day worth on something that I ended up booking through AA in under 10 minutes.

Only that I don't think the booking fee is anything like baggage or seating charges as you can't opt out of it. Not to mention in reality it's nothing but a credit card fee.

I have also had a similar experience when I tried to get them to ticket a Premium Economy redemption together with a domestic sector and they insisted that the 2 sectors will need to be booked separately and requires more points just because there is no domestic Premium Economy. VA simply don't have the ability to redeem a mixed cabin itinerary even if you only ask for a Economy seat after a long haul First Class.