The most ridiculous reward booking cancellation fee

[roby]

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.

So in the whole process they have charged me a 25% credit card fee to book it, a 50% credit card fee to cancel it and no credit card fee refund when the charge was refunded.

How do they think this is an acceptable practice!!!

 

[Mattg]

That sounds pretty dodgy to me...

 

[dajop]

Do they offer another method of payment for the cancellation fee (other than credit card)? If not, surely it should be advertised as a $90 not $60 ...

 

[farstar]

It is not if they offer another method, the point is the fee charged a true representation of the cost to Virgin to use a credit card, the RBA says they need to charge a fee that represents their costs and not gouge.

 

[drron]

Why a CC fee for the cancellation charge?Surely the $60 (extortionate though it is) should just be subtracted from the refund of taxes.No CC fee involved.
Definitely worth a referral to Fair Trading authorities.

 

[roby]

There are really 3 issues here of which 2 and 3 are particularly questionable:

1. Why do think it's ok to charge a $30 credit card fee for $120 taxes?
2. When they refund the taxes, they don't refund the credit card fee for the taxes!
3. Why do they think it's ok to charge $30 fee for a $60 cancellation fee?

The fare rules say that the cancellation fee is $60 but really its $120. Double!

 

[jneufeld]

3. Why do they think it's ok to charge $30 fee for a $60 cancellation fee?

The fare rules say that the cancellation fee is $60 but really its $120. Double!

This is incorrect and you should call them back to get them to refund your $30, I recently cancelled an international rewards booking and no CC fee was charged. The $30 fee when booking is non-refundable unfortunately.

 

[medhead]

Just tell them to take the $60 cancellation fee out of the $120 that they owe you. Net result they owe you $60.

 

[smit0847]

Just tell them to take the $60 cancellation fee out of the $120 that they owe you. Net result they owe you $60.

Theyll tell you they cant

 

[roby]

Theyll tell you they cant

Correct. I even asked to speak with a "supervisor" who said he would lose his job if he charged me any less. It sounded like they are based offshore (Manila?) and he said that their centre is the only place to deal with reward bookings. I felt pointless keeping arguing with him as I truly believe he has no power, none, to make any decisions.

 

[wxxnxs]

Airline company is the biggest offender coming with CC surcharge, and no one can do anything about that, because they just can in this country!!.

 

[medhead]

Theyll tell you they cant

Correct. I even asked to speak with a "supervisor" who said he would lose his job if he charged me any less. It sounded like they are based offshore (Manila?) and he said that their centre is the only place to deal with reward bookings. I felt pointless keeping arguing with him as I truly believe he has no power, none, to make any decisions.

Which is wrong. They owe you money. Not the other way around. Take it to small claims.

Oh and I haven't suggested charging you less. I've clearly stated that they charge the full cancelation fee of $60. Since the airline owes you more money there is ZERO need for you to pay them and therefore no credit card fee.

Otherwise, tell them you will be charging them a $30 payment fee for the refund. Many years ago Telstra failed to refund my money by the due date. Telstra has a $25 late payment fee. I demanded and got my $25 late fee for their failure to refund. Simply tell VA that you have a $30 fee on their payment method, presumably to your credit card.

 

[leyy]

Which is wrong. They owe you money. Not the other way around. Take it to small claims.

Plenty of ways to gain attention from VA Head office.

1) Social media - post on facebook and twitter and tag them in

2) report to FOS/Fair trading.


This cost them $$$ and the sooner they see this they will be begging to give your money back.

Cheers,
leyy

 

[Eggsbenedict]

I think someone has just made a mistake here. I have cancelled two international reward bookings this year and both times the cancellation fee just came out of the tax's reimbursement. Personally I would call the domestic call centre and talk to someone there about whats happened if no luck then as suggested Facebook is a quick way to get a response.

 

[jpk]

Yeah sounds like a screw up to me... Although I do think it's very dodgy of them to charge a large CC fee on small tax charges - not even QF do that!

 

[Hammando]

I have been stung by this ccard fee before as well.

Get stuck into them.

 

[stoneman]

Don't forget, only call there 'customer service' during Australian business hours to ensure you get Brisbane, not overseas!

 

[JohnK]

A credit card surcharge on a refund? First time I have ever heard anyone try that.

Call back and try again and if they persist with credit card surcharge then complain.

 

[roby]

I think someone has just made a mistake here. I have cancelled two international reward bookings this year and both times the cancellation fee just came out of the tax's reimbursement. Personally I would call the domestic call centre and talk to someone there about whats happened if no luck then as suggested Facebook is a quick way to get a response.

No such luck. I called back and specifically asked and they said that tax refund is not taken into account when they charge the $30 for fees above $50. This came from a supervisor. She said the is their process and I agreed to it when I bought the ticket. Total rubbish!

Domestic call centre said they don't deal with this and put me through to Manila.

 

[knasty]

I would definitely be pursuing this on one of their social media channels. Keep it factual and without emotion. Virgin won't want a public discussion of obvious gouging.