Travel agent credit card surcharges

[WindowSeat]

Hi all

Grabbed some travel insurance today via Flight Centre and noticed they have about 2% surcharge on Visa and MC, and more on Amex. No drama this time as the spend was only about $200 but if I was booking a DONE4 or something I'd want to minimise the surcharge but still put it on an Amex to maximise points earn.

I haven't used a TA for ages as everything I've done myself directly and is usually simple, but do any of the major travel agencies not run credit card surcharges (preferably Amex but also Visa/MC)?

Thanks

 

[Andyzx]

I also got tagged a 1.98% surcharge on my visa credit card purchase of a J class international through Flight Center. It was still the cheapest price around but the difference against the others that had built the Fx, CC and TA charge into the published cost was not as much.
I was a little annoyed :evil: that it came through after I had asked them for the cost including all additional charges. She did give me the option of paying in cash or direct credit but who has that sort of cash lying around this month.

Another reason to use online TA then you know what you are being charged.:arrow:

 

[auriga]

One of my pet hates....

 

[trippin_the_rift]

I told my FC agent many years ago that I would not pay any BS card fees. Since then I've obviously not paid a cent in CC fees and in exchange put through $20k+/year through them.

A good relationship with your local travel agent manager always helps.

In saying that, if you're booking premium cabin fares I would not pay any surcharge no matter what.

Ask them if losing a premium sale is worth sacrificing 2%. They need your business more than you need their help... :2cents

 

[Travel Guru]

2% is a high surcharge for Visa/Master, they never used to charge that much.

My surcharge is 1%, so cant think why they'd be paying 2.

One thing to realise with Flight Centre is that their staff have a lot of control over things like whether to wear it or whether to charge it, so on a high commission sale like insurance especially, I'd be pushing them to waive it...surely them making 40% commission (depending on which covermore product, it ranges from 10-40% between products), id be pushing them to wear it.

The thing with DONE4's, is that the airline will accept credit card, therefore negating the need to ring the card through in house and therefore paying a CC surcharge.
Not all airlines accept CC's, but quite a few do, so worth asking as it can certainly reduce the need to pay a surcharge.

TG

 

[brissyflyer]

I think Flight Centre might be making a bit on the side with the CC charges. I did some research into buying a travel agency in recent times and through AFTA agencies have access to very good merchant rates through CBA. The rates listed are 0.83% for VIsa/Mastercard Standard Cards and 1.4% for Premium Cards (which I think is for Gold/Platinum Cards).

 

[hazel]

I prefer paying with AMEX to maximise points. I had 2 OS flights with different airlines in the past 4 months both booked via the TA . 1st time the TA charged for using the Amex -she also said there wasn't a comission earnt on those flights. 2nd time no Amex fee she said they could be paid direct.
Not sure what that meant.

 

[odysseus]

I prefer paying with AMEX to maximise points. I had 2 OS flights with different airlines in the past 4 months both booked via the TA . 1st time the TA charged for using the Amex -she also said there wasn't a comission earnt on those flights. 2nd time no Amex fee she said they could be paid direct.
Not sure what that meant.

Direct sounds like what Travel Guru described where the airline is processing the charge themselves (and then rebates the commission back), rather than the agent taking your money and then paying the airline themselves in the first case.

 

[Travel Guru]

I think Flight Centre might be making a bit on the side with the CC charges. I did some research into buying a travel agency in recent times and through AFTA agencies have access to very good merchant rates through CBA. The rates listed are 0.83% for VIsa/Mastercard Standard Cards and 1.4% for Premium Cards (which I think is for Gold/Platinum Cards).

I've got a feeling thats what FC paying (.83%), it was roughly that amount which got debited off files back when I was with them (its been almost 3 yrs since I walked away), so we'd charge 1% but only lost .83% (ish) off the file.

I think theyre taking the piss a bit with 2%, theres no way they'd be paying close to that.

TG

 

[hazel]

1 or 2% is quite reasonable compared to the QF
We are committed to making the booking process as convenient as possible for our customers. Therefore, we have standardised the credit card service fees for all bookings made at qantas.com

$7.70 per domestic booking - that means on the $89 fare I just payed the CC fee was almost 8%

 

[Leumas]

1 or 2% is quite reasonable compared to the QF
We are committed to making the booking process as convenient as possible for our customers. Therefore, we have standardised the credit card service fees for all bookings made at qantas.com

$7.70 per domestic booking - that means on the $89 fare I just payed the CC fee was almost 8%

Not that I agree with the practice of charging, let alone the amount, but I agree with a flat amount in this case.

If I get a $10K+ fare from a TA, I'd be hit by a ~$200 fee at 2% by using the same machine and same system as they would for a domestic $89 fare. Whereas on the QF site, I only pay $25 flat.

I only use a TA for complex things, and as said before, having a regular TA helps. I don't think I've ever paid a cc surcharge in the 8 years I've dealt with her. She's tried a couple of times, but eventually back down.

When I buy direct from a web site, I see it as a fee to get the extra points. (Yes, I know, I already pay an annual fee for my cards.)

 

[garyjohn951]

When I buy direct from a web site, I see it as a fee to get the extra points. (Yes, I know, I already pay an annual fee for my cards.)

I'm sorry I don't see the logic in this. Its alright for a website to screw you with charge but not the TA. You get the extra points both ways.

 

[ChrisBNE]

The good old Australian mentality that if you're aware that you're paying a fee, we kick and scream until we have the fee waived. But if everything is hidden in the full price, and in some cases it costs more, we're fine with that.

I'm sorry but most retailers charge a credti card fee. Not too long until Woolys/Coles/Myers etc start to charge.

 

[Flying Fox]

I've bought insurance online through Travel Insurance Direct (underwritten by Allianz) and always found them inexprensive and sur-chargeless.

If you do some Googling you can find 10% discount vouchers most of the time.

 

[garyjohn951]

The good old Australian mentality that if you're aware that you're paying a fee, we kick and scream until we have the fee waived. But if everything is hidden in the full price, and in some cases it costs more, we're fine with that.

I'm sorry but most retailers charge a credti card fee. Not too long until Woolys/Coles/Myers etc start to charge.

Correct. My company doesn't add CC fees as we budget for it in the price of our products. What we do is give a discount for that old fashion payment called CASH

 

[ChrisBNE]

Correct. My company doesn't add CC fees as we budget for it in the price of our products. What we do is give a discount for that old fashion payment called CASH

That's the thing, at the end of the day they are both the same arbatrary figures, but it depends on the way you market it.

 

[Travel Guru]

Correct. My company doesn't add CC fees as we budget for it in the price of our products. What we do is give a discount for that old fashion payment called CASH

I bet you're not working off the kind of margins there are in travel though.

At the end of the day, I don't have an issue with passing it on, as ive said in the past, people want to have their cake and eat it too when it comes to points accrual, but I also won't stand for this practice of charging more than what it's actually costing, nor do I believe it was ever the intention of those who passed the legislation making it possible to on charge it, to enable some companies to profit from it by over charging the CC surcharge.

It isn't about what's reasonable, its about whats ethical, and charging 2% when its costing you .83% is anything but ethical in my book.

As far as the debate regarding TA's charging a % versus QF charging a fixed amount...of course they can afford to charge you a fixed amount, say you're buying a 10k airfare from them (and id suggest if you are then you're being taken for a ride because they wont sell you a corporate fare that some agents like myself can access), and assume that if you ticketed that 10k airfare through myself, they'd be paying me around $500 commission (5%), so whats better for them, to wear the $75 difference between the 1% id charge and the $25 they do, or to charge the same and remove any incentive to book direct.
I can see why it would be an attractive option compared to booking through your local flight centre, but for the average punter (and you have to remember the average traveller doesnt possess alot of the knowledge those on this forum do), when dealing with a professional advisor such as myself, theyre going to get alot more added value from myself than they are from a website making the $75 extra more than worthwhile to pay to access that value.

Just my 2c

TG

 

[Dave Noble]

Rather than worry about surcharges by merchants, perhaps it would be simpler for merchant charges to be removed and for the cost of using to be borne by the card holder. Have a card that charges 0.5% and will be cheaper than if having a card that charges 2%

I see no issue with any company charging extra for the extra costs of accepting credit cards; it is easily avoided by paying with another method

I find the comment ". She did give me the option of paying in cash or direct credit but who has that sort of cash lying around this month." odd since I don't see why someone buying tickets would not have the funds to pay for it

Dave

 

[Travel Guru]

Rather than worry about surcharges by merchants, perhaps it would be simpler for merchant charges to be removed and for the cost of using to be borne by the card holder. Have a card that charges 0.5% and will be cheaper than if having a card that charges 2%

I see no issue with any company charging extra for the extra costs of accepting credit cards; it is easily avoided by paying with another method

I find the comment ". She did give me the option of paying in cash or direct credit but who has that sort of cash lying around this month." odd since I don't see why someone buying tickets would not have the funds to pay for it

Dave

I have to agree with you Dave, I think it would be a better system all around if the user bore a flat fee on their card...would alleviate alot of problems.

TG

 

[oz_mark]

That's the thing, at the end of the day they are both the same arbatrary figures, but it depends on the way you market it.

Not sure that advertising a 1.5% discount for cash would have that much appeal. I always aim higher when trying for discounts