Australia credit card fee
Feb 28, 2010, 9:40 pm
#18
Join Date: Jan 2010
Posts: 358
Two years ago in Radisson Tallinn (Estonia) I had the opposite experience : 10% surcharge if I wanted to pay cash. It was never mentioned on the website and I was not informed in advance. The receptionist just told me "that's the way it is". So I paid with credit card. I did not follow on the incident as Radisson is not my prime choice when traveling.
Feb 28, 2010, 11:35 pm
#19
Ambassador: World of Hyatt
Join Date: Apr 2000
Location: San Diego,CA
Posts: 10,083
I got slammed with fee policy at the IC in Australia this week for the first time ever. However I also won't return again.I am also glad I didn't stay at the Hilton in Sydney as Sydney is my next destination
The principal of it makes me
In the US one could lose their abilty to accept credit cards for many years for doing so. I do not know what the current rulings are in either country without doing some research
The hotels are acting like desperate flea market merchants......
I say boycott if you can and stay where ever the policy doesn't exist
Its the new energy surcharge in a new disguise
The principal of it makes me
In the US one could lose their abilty to accept credit cards for many years for doing so. I do not know what the current rulings are in either country without doing some research
The hotels are acting like desperate flea market merchants......
I say boycott if you can and stay where ever the policy doesn't exist
Its the new energy surcharge in a new disguise
Mar 1, 2010, 1:23 am
#22
Join Date: Dec 2004
Location: London
Posts: 6,265
A pile of $5 banknotes would be nearly as effective, $1000 in $5 notes would probably be about 10cm high ... and they would have to count them right?
Mar 1, 2010, 8:32 am
#23
In Memoriam
Join Date: Feb 2000
Location: Easton, CT, USA
Programs: ua prem exec, Former hilton diamond
Posts: 31,801
As to the legality of them charging the fees:
Visa, MasterCard and the banks that issue their cards prohibit retailers from charging extra if consumers pay with credit instead of cash, out of fear that more people would use cash if they knew that using plastic would cost more. Where exceptions are allowed, as in some gas stations, retailers must list the cash and credit card prices for each item. In Australia, the central bank overrode the banks’ and card companies’ rules, and authorized surcharges.
From A New York Times story about it a few months ago (which says at Sofitel, they are making a profit off the fees, not just recovering costs, like that's a big shock).
Visa, MasterCard and the banks that issue their cards prohibit retailers from charging extra if consumers pay with credit instead of cash, out of fear that more people would use cash if they knew that using plastic would cost more. Where exceptions are allowed, as in some gas stations, retailers must list the cash and credit card prices for each item. In Australia, the central bank overrode the banks’ and card companies’ rules, and authorized surcharges.
From A New York Times story about it a few months ago (which says at Sofitel, they are making a profit off the fees, not just recovering costs, like that's a big shock).
Mar 1, 2010, 2:06 pm
#24
Original Poster
Join Date: Dec 2001
Location: Washington, DC, USA
Programs: UA-1Kmm, AA-EX Plt mm-, Hilton Diamond,
Posts: 1,093
On the plus side the hotel did inform me about this upon arrival but none the less they should warn about this fee upon booking a reservation. For most people it will be hard to avoid this sneaky and somewhat hidden fee. It only causes ill will towards the hotel IMHO.
Mar 2, 2010, 12:40 am
#25
Join Date: Mar 2003
Location: SYD
Programs: DJ, QF, SPG, Hilton
Posts: 2,984
I tried a dummy booking last night, the fee is now listed in the T&C of the rate.
BTW, I've noticed some really high rate from this hotel recently. $600 to $1000 for a basic room... What are they thinking...? I doubt Sydney is really that short of rooms...
BTW, I've noticed some really high rate from this hotel recently. $600 to $1000 for a basic room... What are they thinking...? I doubt Sydney is really that short of rooms...
Mar 2, 2010, 5:42 pm
#27
Moderator: American AAdvantage
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
Utter rubbish! Not to mention unmitigated greed. This does not speak highly of the Australian government's attitude toward tourism.
The Reserve Bank of Australia has permitted merchants to add surcharges on any credit card purchases in Australia. This applies to Visa, Mastercard, Amex and Diners etc.
The intention was to benefit consumers, but it has had the reverse effect, where merchants add surcharges because they can.
Of course if you pay cash, there is no surcharge, but in the case of hotels most people pay by credit card. Sad to see Hilton have joined the band of surchargers.
The intention was to benefit consumers, but it has had the reverse effect, where merchants add surcharges because they can.
Of course if you pay cash, there is no surcharge, but in the case of hotels most people pay by credit card. Sad to see Hilton have joined the band of surchargers.
Mar 21, 2010, 6:33 pm
#28
Join Date: Jan 2007
Location: Brisbane
Posts: 1,950
I hate to disappoint all our international friends, but unfortunately this is becoming a lot more commonplace in Australia than you'd like to believe.
Small, medium, large businesses all alike - they have either cut acceptance of Amex/Diners, or levied various surcharges (in some cases, a blanket surcharge on all credit cards, or different surcharge amounts for, say, Visa/MC and Amex/Diners). I went out for dinner last night to a Chinese restaurant and all credit cards were accepted (according to the sticker on the door and on the advert card at the counter). However since our dinner was a "special" (it was just a good price for a meal we saw in the paper), the manager wouldn't accept my credit cards. We had to use cold hard cash.
The only hotels I can think of that don't surcharge are those in the A|C group, Hyatt group and SPG. A large Australian chain of hotels/motels known as the Constellation Group do surcharge for all credit cards. Many non-chain hotels of all star ratings probably don't surcharge either, although Amex/Diners acceptance at those hotels is spotty at best.
All airlines in Australia charge a credit card surcharge.
The main arguments for having the surcharge are (and some of these are actually conceived by kooky Australian customers
):
We have a weak consumer protection in this regard. I realise that sometimes consumers can be complete PITAs and don't deserve any good service even if it were to nip them in the butt, but in this case this is just heavy handed tactics by businesses which can easily account for the merchant fees in their bottom line, and the regulatory bodies and consumer affairs offices are lackadaisical to do anything (except maybe crack open another bl**dy cold beer....)
Small, medium, large businesses all alike - they have either cut acceptance of Amex/Diners, or levied various surcharges (in some cases, a blanket surcharge on all credit cards, or different surcharge amounts for, say, Visa/MC and Amex/Diners). I went out for dinner last night to a Chinese restaurant and all credit cards were accepted (according to the sticker on the door and on the advert card at the counter). However since our dinner was a "special" (it was just a good price for a meal we saw in the paper), the manager wouldn't accept my credit cards. We had to use cold hard cash.
The only hotels I can think of that don't surcharge are those in the A|C group, Hyatt group and SPG. A large Australian chain of hotels/motels known as the Constellation Group do surcharge for all credit cards. Many non-chain hotels of all star ratings probably don't surcharge either, although Amex/Diners acceptance at those hotels is spotty at best.
All airlines in Australia charge a credit card surcharge.
The main arguments for having the surcharge are (and some of these are actually conceived by kooky Australian customers
):- A person who pays cash necessarily "costs less" to the hotel than someone who pays with a credit card, since the latter will cost the hotel a cut of the bill to pay the bank (or whoever processes credit card transactions for them). Someone who pays cash does not incur such costs (and more due to reduced logistics), and thus should have to pay less than a credit card user.
- Customers are asking for a lot more transparency as to what their money is being used for. Unfortunately, they are getting more than they bargained for. (Perhaps some things are better not said than said at all).
We have a weak consumer protection in this regard. I realise that sometimes consumers can be complete PITAs and don't deserve any good service even if it were to nip them in the butt, but in this case this is just heavy handed tactics by businesses which can easily account for the merchant fees in their bottom line, and the regulatory bodies and consumer affairs offices are lackadaisical to do anything (except maybe crack open another bl**dy cold beer....)
Mar 21, 2010, 7:14 pm
#29
Moderator: Hilton Honors forums
Join Date: Dec 2002
Location: Marietta, Georgia, United States
Posts: 24,997
This is probably a topic that should be discussed by all FlyerTalk members and not just Hilton forum FlyerTalk members who book hotel rooms in Australia, which is why the new home for this thread is now the TravelBuzz! forum.
Thank you.
Regards,
Canarsie
Co-Moderator, Hilton forum
Thank you.
Regards,
Canarsie
Co-Moderator, Hilton forum
Last edited by Canarsie; Mar 21, 2010 at 7:30 pm
Mar 21, 2010, 7:27 pm
#30
FlyerTalk Evangelist
Join Date: Dec 2000
Location: south of WAS DC
Posts: 10,131
a large hotel chain probably has a negotiated rate with the credit card company, which is probably around 1.5%. an independent merchant is probably stuck with a 3% fee, by the time all is said and done. they are only passing their additional expense on to the buyer.