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TD breaking news – Qantas to rejig credit card surcharges

QF moving to percentage-based card fee system. 

Qantas has just announced it will move to a new percentage-based card payment fee from 01 September, replacing the existing flat fee structure.

All credit card payments – including Visa, MasterCard, American Express and Diners Club – will attract a 1.3% fee, with the costs capped at $11 for domestic and trans-Tasman fares, and $70 for international fares. 

For an average domestic return fare of $400 the fee would be $5.20, compared to the current flat fee of $7. A $2000 international fare will have a $26 fee imposed, compared to the current $30 flat fee.

“The majority of Qantas customers will pay the same or less in fees than they do under the current system, and there’ll continue to be low-fee and fee-free options for customers who prefer not to pay with a credit card,” the carrier said.

The percentage-based fee means Qantas can keep recovering some of the costs that come with accepting payments by card, according to a spokesperson. Capping the fees “gives passengers certainty about the maximum they’ll pay before they start booking, and is in line with Qantas’ consistent position that it doesn’t profit from card payment fees”.

A statement confirmed that Jetstar is also working through changes to its own card payment system which will also see it shift to a percentage-based process which will be rolled out in time for the 01 September cutover.

More details in Monday’s issue of Travel Daily.


The above Breaking News Alert was sent to Travel Daily subscribers on 08 Jul 16

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