Credit card surcharge
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Credit card surcharge
Can someone please explain how VB is claiming credit card surcharge is not being passed to customers.
All costs associated with their operation are passed to the client...end of story! I'm sick of listening to their
Marketing.
Atleast QF if being honest (increasing running cost=increasing ticket price). Is the public stupid or am I just missing something?
All costs associated with their operation are passed to the client...end of story! I'm sick of listening to their
Marketing.Atleast QF if being honest (increasing running cost=increasing ticket price). Is the public stupid or am I just missing something?
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it's not that difficult. A ticket costs $x prior to the surcharge. After the surcharge the ticket still cost the same amount. Therefore the surcharge has not been passed onto the passenger. The QF ticket price has gone up by the surcharge amount. You figure it out.
This from an article in "The Age" newspaper, available online:
ASIC's merchant pricing guidelines, timed to coincide with the introduction of surcharging from the start of this year, dictate that consumers be made aware of the fee before they enter into a transaction. "Businesses will need to form their own view, and may need to take their own advice about how to avoid misleading or deceptive conduct," the guidelines state.
"If in doubt the sensible thing to do is to err on the side of stronger disclosure. The need to inform customers about fees for paying by credit card before the customer enters into the transaction also applies to internet, telephone and mail-order sales."
I'd suggest that the ASIC has deemed that just factoring it onto every ticket is deemed to be deceptive conduct under their regulations. I'd suggest that it won't be too long before DJ has to change to meet the same regulations.
As for DJ claiming that they're not passing it on - just the usual marketing/pr spin from Virgin. It's the least we can expect really...
ASIC's merchant pricing guidelines, timed to coincide with the introduction of surcharging from the start of this year, dictate that consumers be made aware of the fee before they enter into a transaction. "Businesses will need to form their own view, and may need to take their own advice about how to avoid misleading or deceptive conduct," the guidelines state.
"If in doubt the sensible thing to do is to err on the side of stronger disclosure. The need to inform customers about fees for paying by credit card before the customer enters into the transaction also applies to internet, telephone and mail-order sales."
I'd suggest that the ASIC has deemed that just factoring it onto every ticket is deemed to be deceptive conduct under their regulations. I'd suggest that it won't be too long before DJ has to change to meet the same regulations.
As for DJ claiming that they're not passing it on - just the usual marketing/pr spin from Virgin. It's the least we can expect really...
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show me the DJ price increase on any route since the introduction of the credit card legislation. If the price has not changed then how can you say they are passing the cost onto the public??? QF are double dipping. They were paying the surcharge before but now have incrased their fares and are telling us its to cover the extra cost. What extra cost???? Shafted yet again by Qaintass.
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I stand to be corrected but QF charge a 1% additional fee for using a credit card - it isn't built into the fare.
By this I mean you work out your fares and come up with a total cost. you then elect to pay by credit card and the amount charged to your card is the fare that you came up with originally PLUS 1% of that fare.
With DJ, you work out the fare and elect to charge it to your card and the amount charged to your card is the fare that you originally calculated PLUS nothing.
Thus DJ say that they are not charging the credit card surcharge.
In both cases the credit card service fees were built into the fare structure, now QF charges the same fare (which had the fees included) and then charges an additional 1% on top. To be fair dinkum, QF probably should have dropped their published fares by 1% at the introduction of the charge
By this I mean you work out your fares and come up with a total cost. you then elect to pay by credit card and the amount charged to your card is the fare that you came up with originally PLUS 1% of that fare.
With DJ, you work out the fare and elect to charge it to your card and the amount charged to your card is the fare that you originally calculated PLUS nothing.
Thus DJ say that they are not charging the credit card surcharge.
In both cases the credit card service fees were built into the fare structure, now QF charges the same fare (which had the fees included) and then charges an additional 1% on top. To be fair dinkum, QF probably should have dropped their published fares by 1% at the introduction of the charge
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From a merchant's point of view, when the merchant fees gobble up big chunks of your margin, it is very tempting to have a surcharge as a deterrent to encourage the punters to pay by other means such as eftpos or internet banking. But if there is no choice, eg buying tickets on the internet, it's a bit unfair.
If QF are charging 1% I would suggest that they are only surcharging half of the merchant fee and wearing the rest themselves.
Maybe if less people used credit cards the banks might reduce the merchant fees, which would be much better for all of us. They'd probably crank up the interest rates to compansate though.
If QF are charging 1% I would suggest that they are only surcharging half of the merchant fee and wearing the rest themselves.
Maybe if less people used credit cards the banks might reduce the merchant fees, which would be much better for all of us. They'd probably crank up the interest rates to compansate though.
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These companies start off by wanting their consumers to use their new automated booking systems (i.e. internet) so that they can save money by not employing staff to man the phones or booking outlets.
So you stop using cash and cheques and get yourself a credit card so that you can use these services.
Now a few years later those same companies forget about the money that they saved in the first place and now want to put a handling fee on any credit card use.
It's a bloody sham.
So you stop using cash and cheques and get yourself a credit card so that you can use these services.
Now a few years later those same companies forget about the money that they saved in the first place and now want to put a handling fee on any credit card use.
It's a bloody sham.
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he banks are the same, Yeah use this cash card, it saves you time and money, there are a squillion cash points to use.
They get you hooked and then charge you for using "other bank" atm's whilst at the same time charging you for using over the counter services.
Thats why they make billions and we don't!
They get you hooked and then charge you for using "other bank" atm's whilst at the same time charging you for using over the counter services.
Thats why they make billions and we don't!
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I asked a Travel Agent about the "Credit Card" surcharge the other day. I was informed that Qantas totally revised the entire fare structure on the 1st July, with some small increases included. The agent though that this increase was approximately 1%. As far as the reservations system goes, the standard price is the now the credit card price and the agents now have the ability to apply a 1% discount for cash transactions.
Whilst it is communicated as a Credit Card surcharge, it is actually a cash discount. I guess this is the same principle, but the agent I spoke to said that they don't worry about going out of their way to offer the 1% discount for cash as it was too much additional work and not many customers were aware of it. I am sure many agents do offer the cash discount, but this one didn't.
At the end of the day the merchant fees are a cost of sale, just like Travel Agents Commission, Global Distribution System fees and many of costs of sale. Customers don't care about the breakdown they just care about the total price, but the advantage of splitting the costs out, is that it helps to educate the customer about the number of costs, which I think is a positive.
Just though I'd pass on what I'd heard.
Whilst it is communicated as a Credit Card surcharge, it is actually a cash discount. I guess this is the same principle, but the agent I spoke to said that they don't worry about going out of their way to offer the 1% discount for cash as it was too much additional work and not many customers were aware of it. I am sure many agents do offer the cash discount, but this one didn't.
At the end of the day the merchant fees are a cost of sale, just like Travel Agents Commission, Global Distribution System fees and many of costs of sale. Customers don't care about the breakdown they just care about the total price, but the advantage of splitting the costs out, is that it helps to educate the customer about the number of costs, which I think is a positive.
Just though I'd pass on what I'd heard.
