Credit card surcharging with Qantas airline tickets just got a revamp. Here are the details.
Qantas will no longer charge flat fees on airline tickets purchased with credit cards online, but apply 1.3% surcharges against total booking values instead. The fee structure overhaul will come into effect this September.
This new mode of pricing was prompted by the RBA Payments System Board recommendations made in May. Decisions were made to lawfully prevent merchants from excessively charging customers who paid with credit and debit cards.
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Whether or not travellers will benefit from Qantas' fee structure adjustment to flight tickets depends on the sale value. Previously the major airline charged customers $7 extra on domestic flights for paying with credit and a $30 flat fee with international journeys.
When the 1.3% credit card surcharge kicks in, local flight fees will be capped at $11 and overseas card fees $70. While the same fee cap will apply to debit card transactions, jetsetters using the payment method are going to be charged much less at 0.6%.
If you're looking to avoid Qantas ticket surcharges altogether, consider the following alternatives...
- Bpay. This service can cost less than one dollar extra in fees, but be sure to buy your airfare at least 7 days before the plane takes off.
- Poli. The 7 day rule applies to Poli payments too. It's a homegrown payments system much similar to Bpay.
Just to recap, here are the new fees:
| Booking made in Australia, AUD | Debit/prepaid card | Credit/charge card | Fee cap, per ticket, per card in AUD |
|---|---|---|---|
| Domestic | 0.6% | 1.3% | $11 |
| Trans-tasman | 0.6% | 1.3% | $11 |
| International | 0.6% | 1.3% | $70 |
Information courtesy of Qantas.
Another thing to keep in mind, when you're booking your flights or accommodation from overseas websites, is that your credit or debit card provider may charge a foreign exchange fee (this is separate to the fee charged by the airline).
For instance, one big bank at the time of writing was charging 3% for any overseas purchases, which would amount to a fee of $60 on a $2,000 airfare. To avoid this cost, make sure you are using a credit or debit card designed for travel like the 28 Degrees Platinum Mastercard that charges no foreign exchange fee. To see more travel friendly credit or debit cards, head to our travel money section here.