Qantas ups credit charges
Jan 23, 2006, 9:22 pm
#1
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Qantas ups credit charges
A report in The Australian about Qantas holidays upping the credit charge for using credit cards.
THE cost of taking a Qantas break is about to increase as its holiday arm lifts the fee levied on credit card transactions from 1per cent to 1.4per cent.
A spokeswoman confirmed yesterday that the credit card fee charged by Qantas Holidays would increase from February 21 but said it would not apply to air tickets.
She said the new fee was in line with travel industry practice, where some players charged 3per cent.
"Even with the increase, Qantas Holidays still only partially recovers the cost of the credit card merchant fees," she said. "It's just a matter of costs, basically."
A spokeswoman confirmed yesterday that the credit card fee charged by Qantas Holidays would increase from February 21 but said it would not apply to air tickets.
She said the new fee was in line with travel industry practice, where some players charged 3per cent.
"Even with the increase, Qantas Holidays still only partially recovers the cost of the credit card merchant fees," she said. "It's just a matter of costs, basically."
Jan 24, 2006, 1:44 am
#2
Join Date: Dec 2004
Location: London
Posts: 6,266
Not really worried about this.
Qantas Holidays is basically a Travel Agent. They all seem to tack on CC surcharges.
Now if we were forced to book our trips through them I would be a little worried!
Most/(All?) of the Qantas Holidays specials can be bought through normal TA's...
Qantas Holidays is basically a Travel Agent. They all seem to tack on CC surcharges.
Now if we were forced to book our trips through them I would be a little worried!
Most/(All?) of the Qantas Holidays specials can be bought through normal TA's...
Jan 24, 2006, 12:47 pm
#3
Join Date: May 2003
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Originally Posted by Aus_Mal
Most/(All?) of the Qantas Holidays specials can be bought through normal TA's...
Jan 26, 2006, 4:06 pm
#4
Join Date: Sep 2005
Location: Melbourne, Commonwealth of Australia
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Nothing more than double dipping
Are these cc charges really all about recovering costs or just another case of double dipping. Amazing how some just accept explanations. Merchant costs existed before "separate" cc surcharges. And given we are encouraged to use the internet to book and not via humans at their call centre how are we expected to pay other than by card- post in a cheque. 
At that time one assumes the cost was built into the airfare, like fuel, wages, food allowances , airport fees etc etc. When they introduced this surcharge did the fare go down by a corresponding amount for those that paid cash -unlikely. So if the fare already incorp the charge, then they charge it again it is double dipping.
Bit like you being charged a surcharge by the supermarket for "electricity use" while shopping.
At that time one assumes the cost was built into the airfare, like fuel, wages, food allowances , airport fees etc etc. When they introduced this surcharge did the fare go down by a corresponding amount for those that paid cash -unlikely. So if the fare already incorp the charge, then they charge it again it is double dipping.
Bit like you being charged a surcharge by the supermarket for "electricity use" while shopping.
Jan 26, 2006, 8:21 pm
#5
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Any merchant on high average ticket prices like Qantas is paying WELL under 1% for their Bankcard/visa/MC transactions - trust me.
This increase is pure profit - nothing less.
My own rate is about 1.5% but anyone with a hardware store - even indies, are on .92% right now including GST.
This increase is pure profit - nothing less.
My own rate is about 1.5% but anyone with a hardware store - even indies, are on .92% right now including GST.
Jan 26, 2006, 10:00 pm
#6
Join Date: Jan 2004
Location: Jersey, CI
Posts: 1,094
Originally Posted by ozstamps
Any merchant on high average ticket prices like Qantas is paying WELL under 1% for their Bankcard/visa/MC transactions - trust me.
This increase is pure profit - nothing less.
My own rate is about 1.5% but anyone with a hardware store - even indies, are on .92% right now including GST.
This increase is pure profit - nothing less.
My own rate is about 1.5% but anyone with a hardware store - even indies, are on .92% right now including GST.
Many businesses are subject to a 'high risk' assessment from financial institutions. Be in this, and they slug you huge percentage rates. I know small/mid sized businesses paying under 1.0% for around 100-200k turnover a year with average per-swipe cost of around $80. Tell them you're an online shop, and that'll rocket to 8-9% even if you are doing large turnover. Until you can prove to them the risk of fraud or the like is minimal, you'll have to suffer.
Aviation may be a mid-risk industry, due to the fact unscrupulous people could steal CC details, book a flight and be gone before anyone can follow it up, a "flight risk" if you'll pardon the pun
Regardless, I'm sure Qantas are as you say, paying less. Just adding my 2.2c worth.
Drew
Jan 27, 2006, 1:57 am
#7
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Originally Posted by drewbles
Aviation may be a mid-risk industry, due to the fact unscrupulous people could steal CC details, book a flight and be gone before anyone can follow it up, a "flight risk" if you'll pardon the pun
Air tickets today would be THE lowest risk business out there basically.
Try stealing a card and getting onto ANY Qantas flight without photo ID that matches the name on the ticket to the person trying to board.
They email itinerary to the passenger and have your contact phone number. And know where you went - and when.
If the whistle blew from the time of booking til time of check-in don't you imagine "John Doe" checking in for a Qantas flight when real card holder and bank knew exactly what flight that was would not have a few nice Feds there with handcuffs to have a word at check-in?
Zero risk basically. And they are paying well under 1% for sure.
FWIW all my busines is on line and my rate is only about 1.5%. I have never heard of anyone in Australia - even a brand new merchant being charged by Visa/MC bankers more than 5%.