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JQ Credit Card Purchase Surcharge  
User currently offlineEDICHC From , joined Dec 1969, posts, RR:
Posted (7 years 2 months 4 days 8 hours ago) and read 2375 times:

I have just booked a trip for my wife and I to fly from CHC to MEL in Sept. When at the check-out part of the booking I noted that the total cost had jumped $16.

Apparently this was JQ's credit card surcharge ($4 per pax per sector). OK $16 is not very much, but when you consider that you can only pay for JQ flights by credit card; it seems a bit unfair to describe it as a surcharge. Why not just be transparent about it and advertise each sectors fare as being $4 more?

30 replies: All unread, showing first 25:
 
User currently offlineBrokenrecord From United States of America, joined Jul 2005, 772 posts, RR: 0
Reply 1, posted (7 years 2 months 4 days 8 hours ago) and read 2362 times:

Sounds like how US airlines show their prices without the taxes included to make it look cheaper.

User currently offlinePoitin From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 2 months 4 days 8 hours ago) and read 2349 times:

I completely agree -- but expect more and more of this nickel and dimeing as more and more airlines look at ways to increase their revenues through secondary charges. Just look at what FR does, and now EI, and many other European airlines -- charge you for checking bags, seat selections, early boarding, food, drink, and fairly soon expect to see a coin opener on the toilet. Already this is spreading to the US.

Complain to your government and if enough do, it will change. If you don't, then it will get worse.


User currently offlineEDICHC From , joined Dec 1969, posts, RR:
Reply 3, posted (7 years 2 months 4 days 8 hours ago) and read 2347 times:

Quoting Brokenrecord (Reply 1):
Sounds like how US airlines show their prices without the taxes included to make it look cheaper

Yeah but when booking on JQ it quotes the fares as taxes included at the penultimate stage but then the credit card surcharge is added once you go to the check out stage. Like I say $16 is not much but I feel it is misleading. When you consider that it is impossible to pay any other way it can be rather annoying.

[Edited 2007-07-29 15:19:49]

User currently offlineChiGB1973 From United States of America, joined Mar 2004, 1616 posts, RR: 1
Reply 4, posted (7 years 2 months 4 days 8 hours ago) and read 2306 times:

Quoting Brokenrecord (Reply 1):
Sounds like how US airlines show their prices without the taxes included to make it look cheaper.

Just the airlines?

Except for gas, almost everything is without tax price before you purchase. It's common practice, yet when in comes to airliners, it is wrong.

It is probably a % of the purchase price, so there is not a way to express how much it will add to the final cost without some type if table or graph to break it down. Unless the entire industry was required to put this amount up front, then it would not be business-wise for JQ to do it on their own. JQ may itemize this charge, but you can bet every airline is charging extra for the cost of doing credit card business.

M


User currently offlineNzrich From New Zealand, joined Dec 2005, 1522 posts, RR: 1
Reply 5, posted (7 years 2 months 4 days 7 hours ago) and read 2274 times:

Quoting ChiGB1973 (Reply 4):
It is probably a % of the purchase price, so there is not a way to express how much it will add to the final cost without some type if table or graph to break it down. Unless the entire industry was required to put this amount up front, then it would not be business-wise for JQ to do it on their own. JQ may itemize this charge, but you can bet every airline is charging extra for the cost of doing credit card business.

No its a charge per sector per person not a percentage !!!! There are other ways to pay for your airfares but unfortunately you either have to have jetstar vouchers or direct payment out of your bank account ..



"Pride of the pacific"
User currently offlineChiGB1973 From United States of America, joined Mar 2004, 1616 posts, RR: 1
Reply 6, posted (7 years 2 months 4 days 7 hours ago) and read 2248 times:

Quoting Nzrich (Reply 5):
No its a charge per sector per person not a percentage !!!!

Oops, missed that, but went to Jetstar's website and this should not have been a surprise when you got to check-out. It is the third note under the initial part of the booking. You just went to check-out before reading the information. Similar to what I did when I misread the "charge per sector" prior to my last post.

Quoting ChiGB1973 (Reply 4):
Unless the entire industry was required to put this amount up front, then it would not be business-wise for JQ to do it on their own.

On research, JQ does put it up front, yet I stand by:

Quoting ChiGB1973 (Reply 4):
JQ may itemize this charge, but you can bet every airline is charging extra for the cost of doing credit card business.

M


User currently offlinePurpleBox From United Kingdom, joined Jun 2005, 325 posts, RR: 0
Reply 7, posted (7 years 2 months 4 days 4 hours ago) and read 2184 times:

Quoting EDICHC (Thread starter):
Apparently this was JQ's credit card surcharge ($4 per pax per sector). OK $16 is not very much, but when you consider that you can only pay for JQ flights by credit card; it seems a bit unfair to describe it as a surcharge.

Applying CC charges is bad in the first place but charging for each sector is terrible.

Here in Europe airlines like LH have introduced CC charges this year - but only in some markets (i.e. charged in Germany but not charged in the UK) but they never charge per sector and the charge is only 3€.

And of course there are other non CC options to make your payment!

It's just another example of LCC duplicity.

PurpleBox.

[Edited 2007-07-29 19:03:32]


Next Flights:STH-ATH-STN (A3), BHX-INV-BHX(BE), LCY-FRA-BOG(LH), EZE-FRA-LHR(LH)
User currently offlineSevenair From United Kingdom, joined Feb 2001, 1728 posts, RR: 0
Reply 8, posted (7 years 2 months 4 days 4 hours ago) and read 2171 times:

I do think that charges should be advertised. For example, if you include the Debit Card fee in the fare, and charge $2 more for a credit car it would be a lot more transparent. Some airlines allow free use of Electron - but I cannot imagine there are many electron users! My bank, and other major banks offer Visa Debit by default.

User currently offlineClassicLover From Ireland, joined Mar 2004, 4636 posts, RR: 23
Reply 9, posted (7 years 2 months 4 days 3 hours ago) and read 2128 times:

Quoting EDICHC (Thread starter):
Apparently this was JQ's credit card surcharge ($4 per pax per sector).

A lot of airlines charge for credit card - QF do it too. Malev charge for paper tickets. I wouldn't worry about it, $4 per sector is peanuts.



I do quite enjoy a spot of flying - more so when it's not in Economy!
User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 10, posted (7 years 2 months 4 days 3 hours ago) and read 2115 times:

Considering some of the credit card companies are hurting financially, and as a result, raised the fees they charge per merchants, it's no surprise those costs get passed on to the consumers. There are many independently owned gas stations that have a minimum amount one can charge; others will throw a fee on charges under a certain amount. Some stations in some areas have actually quit selling gas because their profit margin was being eaten up by the fees the credit card companies were charging.

User currently offlineNzrich From New Zealand, joined Dec 2005, 1522 posts, RR: 1
Reply 11, posted (7 years 2 months 4 days ago) and read 2060 times:

Its actually not uncommon in Australia to get charged extra when paying by credit card .. Basically most shops in SYD airport charge extra for credit cards some only for Amex and Diners .. A hotel i have just booked is charging me 1% to pay by credit card etc etc .. I think why you will find it a extra is if you pay by direct payment the bank will charge you the fee to do it , where if you pay by credit card the credit card compay will charge the company a percentage of the whole sale ..


"Pride of the pacific"
User currently offlineGemuser From Australia, joined Nov 2003, 5681 posts, RR: 6
Reply 12, posted (7 years 2 months 3 days 23 hours ago) and read 2053 times:

Quoting Nzrich (Reply 11):
Its actually not uncommon in Australia to get charged extra when paying by credit card .. Basically most shops in SYD airport charge extra for credit cards some only for Amex and Diners .. A hotel i have just booked is charging me 1% to pay by credit card etc etc ..

Basically EVERY credit card transaction in Oz has this surcharge, except consumer retail. It is because our Central Bank (The Reserve Bank of Australia) took Visa & Mastercard on over "interchange" fees, whatever they are. As a result the fees are being passed on directly to the consumer rather than absorbed, except in those markets where it would be commerical suicide to do so.

It's not just JQ and it's not just airlines.

Gemuser



DC23468910;B72172273373G73873H74374475275376377L77W;A319 320321332333343;BAe146;C402;DHC6;F27;L188;MD80MD85
User currently offlinePyrex From Portugal, joined Aug 2005, 4024 posts, RR: 28
Reply 13, posted (7 years 2 months 3 days 21 hours ago) and read 1995 times:

Quoting ChiGB1973 (Reply 4):
but you can bet every airline is charging extra for the cost of doing credit card business.

If you have no other choice than to pay by credit card then it makes absolutely no sense (after all, that was the method THEY chose to do business). Besides, merchants get charged a percentage of the entire transaction value (for a large customer in a western country I would say a little over 1%, less than that in a few countries), thus charging a fee for each sector is just absurd.

Quoting Gemuser (Reply 12):
"interchange" fees, whatever they are

Interchange fees are the fees the merchant's acquirer (i.e. it's bank) must pay the bank that issued the card in the first place, and are a percentage of the transaction value. If the Central Bank is cracking down on IFs (which are fixed for each country, btw - all issuing banks get the same %) the natural end-result is for merchants (airlines, retailers, etc.) to see their costs of accepting CCs go down, so they have no reason to pass on any costs to consumers.



Read this very carefully, I shall write this only once!
User currently offlineHalophila From United States of America, joined Aug 2005, 646 posts, RR: 4
Reply 14, posted (7 years 2 months 3 days 21 hours ago) and read 1970 times:

Quoting Gemuser (Reply 12):
Basically EVERY credit card transaction in Oz has this surcharge, except consumer retail. It is because our Central Bank (The Reserve Bank of Australia) took Visa & Mastercard on over "interchange" fees, whatever they are. As a result the fees are being passed on directly to the consumer rather than absorbed, except in those markets where it would be commerical suicide to do so.

They used to charge extra at some places for EFTPOS transactions (which for US folks means ATM at checkout) when it was first introduced.



Flown on 707, 717, 727, 732 733 734 735 73G 738 739 741 742 743 744 74SP 757 753 762 763 772 773 77W D10 DC9 M11 M80 M87
User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 15, posted (7 years 2 months 3 days 19 hours ago) and read 1900 times:

Quoting EDICHC (Thread starter):
Apparently this was JQ's credit card surcharge ($4 per pax per sector). OK $16 is not very much, but when you consider that you can only pay for JQ flights by credit card; it seems a bit unfair to describe it as a surcharge. Why not just be transparent about it and advertise each sectors fare as being $4 more?

Because it's a banking charge.......imposed by your own bank for use of their credit card. It has actually nothing to do with the airline so thus can't simply be added to the fare in itself.


User currently offlineBrokenrecord From United States of America, joined Jul 2005, 772 posts, RR: 0
Reply 16, posted (7 years 2 months 3 days 18 hours ago) and read 1858 times:

Quoting ChiGB1973 (Reply 4):
Just the airlines?

Except for gas, almost everything is without tax price before you purchase. It's common practice, yet when in comes to airliners, it is wrong.

It is probably a % of the purchase price, so there is not a way to express how much it will add to the final cost without some type if table or graph to break it down. Unless the entire industry was required to put this amount up front, then it would not be business-wise for JQ to do it on their own. JQ may itemize this charge, but you can bet every airline is charging extra for the cost of doing credit card business.

M

I hear what you're saying, but it used to be that one could go to a booking site and see the entire cost, including tax.


User currently offlineBill142 From Australia, joined Aug 2004, 8451 posts, RR: 8
Reply 17, posted (7 years 2 months 3 days 17 hours ago) and read 1833 times:

What are you complaining about? Take a look at your every day life and you'll realise Qantas and Jetstar aren't the only ones passing on credit card charges to customers. If you don't like it, go to the travel agent and pay cash.

User currently offlineTUNisia From United States of America, joined Aug 2004, 1844 posts, RR: 5
Reply 18, posted (7 years 2 months 3 days 17 hours ago) and read 1804 times:

It's against VISA/MASTERCARD policy to pass on a fee to the consumer if using a credit card. It's a violation of the merchant agreement that they signed. Regulated government entities are the only people allowed to tack on a fee AFAIK. Call 1-800-VISA-911 and report them (if in the USA). Mastercard also has an online complaint form.

When I use AMEX and I get charged a "surcharge" I simply call AMEX and explain that I was charged a fee by a merchant for the "convenience" of using one of their cards. They say that isn't supposed to happen and issue a credit for the amount. A complaint against the merchant is also filed.

[Edited 2007-07-30 06:22:54]


Someday the sun will shine down on me in some faraway place - Mahalia Jackson
User currently offlineANstar From United Kingdom, joined Nov 2003, 5251 posts, RR: 6
Reply 19, posted (7 years 2 months 3 days 16 hours ago) and read 1781 times:

Quoting TUNisia (Reply 18):
It's against VISA/MASTERCARD policy to pass on a fee to the consumer if using a credit card. It's a violation of the merchant agreement that they signed. Regulated government entities are the only people allowed to tack on a fee AFAIK. Call 1-800-VISA-911 and report them (if in the USA). Mastercard also has an online complaint form.

When I use AMEX and I get charged a "surcharge" I simply call AMEX and explain that I was charged a fee by a merchant for the "convenience" of using one of their cards. They say that isn't supposed to happen and issue a credit for the amount. A complaint against the merchant is also filed.

Is this in Australia? As Asutralian lawas are different and do allow for these surcharges.


User currently offlineQantas787 From , joined Dec 1969, posts, RR:
Reply 20, posted (7 years 2 months 3 days 16 hours ago) and read 1744 times:

Quoting TUNisia (Reply 18):
When I use AMEX and I get charged a "surcharge" I simply call AMEX and explain that I was charged a fee by a merchant for the "convenience" of using one of their cards. They say that isn't supposed to happen and issue a credit for the amount. A complaint against the merchant is also filed.

In Australia you can call AMEX all you want but I guarantee you will get no refund. In our business (hospitality) we charge 4% on Diners and AMEX - that is also the rate they charge us. We do not charge extra for Visa or Mastercard as they only charge us .8%. Do you expect us as a small business to wear $40 in every $1000 just for you to use AMEX? With Diners we have to wait 6 business days to even get payment. Pay the surcharge or use another card. This year our RTW tickets will be purchased via Qantas not a travel agent because Qantas charge a mere pittance for the use of AMEX, whereas all travel agents charge between 2-4%. On a $60000.00 purchase it really adds up.


User currently offlineAnalog From United States of America, joined Jul 2006, 1900 posts, RR: 1
Reply 21, posted (7 years 2 months 3 days 16 hours ago) and read 1734 times:

Quoting ClassicLover (Reply 9):

A lot of airlines charge for credit card - QF do it too. Malev charge for paper tickets. I wouldn't worry about it, $4 per sector is peanuts.

Maybe, but when you add the $5 per sector peanut surcharge, it begins to add up. What genius thought of making the charge per sector?

Quoting Gemuser (Reply 12):
It's not just JQ and it's not just airlines.

In the US, for better or for worse, it's pretty much nobody. The exceptions are government entities (like when you pay taxes) and "cash discounts".

Quoting ANstar (Reply 19):
Is this in Australia? As Asutralian lawas are different and do allow for these surcharges.

They're allowed in the US, but the CC issuers forbid them. It would make sense if Australian laws required these surcharges, or did not allow CC issuers to forbid the surcharges.

Quoting Qantas787 (Reply 20):
This year our RTW tickets will be purchased via Qantas not a travel agent because Qantas charge a mere pittance for the use of AMEX, whereas all travel agents charge between 2-4%. On a $60000.00 purchase it really adds up.

$60,000!?! (okay, Australian Dollars, but still). That's one hell of a RTW.


User currently offlineQantas787 From , joined Dec 1969, posts, RR:
Reply 22, posted (7 years 2 months 3 days 14 hours ago) and read 1704 times:

Quoting Analog (Reply 21):
$60,000!?! (okay, Australian Dollars, but still). That's one hell of a RTW.

Thats 5 people including taxes. Trust me the taxes are dynamite.


User currently offlineGemuser From Australia, joined Nov 2003, 5681 posts, RR: 6
Reply 23, posted (7 years 2 months 3 days 13 hours ago) and read 1672 times:

Quoting Analog (Reply 21):
They're allowed in the US, but the CC issuers forbid them. It would make sense if Australian laws required these surcharges, or did not allow CC issuers to forbid the surcharges.

One of the changes I referred to in Reply 12 was the Reserve Bank voided that part of the credit card co's contracts. (One RUMOR I heard was that the threatened fine would have bankrupted both of them). NOBODY messes with the Reserve Bank!

Apparently it is part of government policy that goes back many years of making EVERYBODY who causes expenses to pay for them. We have certainly come a long way down that road in the last 20 years.

Gemuser



DC23468910;B72172273373G73873H74374475275376377L77W;A319 320321332333343;BAe146;C402;DHC6;F27;L188;MD80MD85
User currently offlineCX777Fan From Australia, joined Feb 2005, 296 posts, RR: 1
Reply 24, posted (7 years 2 months 3 days 13 hours ago) and read 1649 times:

I agree with the OP that $16 leaves a bitter taste. I would have no complaints about paying a couple of dollars per reservation (if the card company is genuinely charging the airline a small fee) but per sector x per pax is simply blatant revenue raising. imagine how it would add up for a family with a few kids forced to take an indirect routing for their holiday...4 sectors (2 each way) x $4 x 5 pax is almost $100...too much money to really justify for what the airline can surely process as a single transaction on the card. Someone might like to do the maths to work out how much the family of 5 would have to pay in total for their airfares before such a hefty credit card charge could be justified.

25 Post contains images AussieAl : From the day sellers were allowed by our rule makers to levy a fee for the use of a credit card I have disagreed with it. If they want to do business
26 EDICHC : If you try to pay cash at a travel agent for a JQ flight the travel agent has to use their corporate card to pay JQ, as JQ will ONLY accept credit ca
27 EDICHC : Not with JQ there isn't!
28 ANstar : Yes there is. You can choose te direct payment option on their website. Where it asks you for a credit card payment there is another tab that allows
29 PurpleBox : I mean with LH! PurpleBox.
30 Pyrex : So in that logic every business should be allowed to advertise prices without VAT, a la USA - after all, it has nothing to do with the business, it i
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