Qantas fee switch good news for fliers
Last Friday, Qantas announced a change in how they charge credit cards, moving from the fixed fee scheme to charging a percentage fee.
The move was forced after the Reserve Bank announced all airlines (and any business earning more than $25 million or with more than 50 employees) must adopt that approach, which more accurately reflect the costs of processing credit cards.
The switch will change the previous charge of $7 per credit card booking for domestic flights, and $30 per credit card booking for international flights, to a 1.3 percent charge of the booking value.
This surcharge value will be capped however at $11 for domestic flights and $70 for international flights.
Passengers who want to avoid these fees do have the option use a debit card (including the Qantas Cash travel card), which is charged at the lesser 0.6 percent (but with the same caps). To avoid the fees all together, payments via BPAY (if you book at least seven days in advance), POLi or any Qantas credit you already have left lying around because of a previous flight cancellation or other compensation, attract no fees.
Qantas is the first airline to rejig the fee structure, with all eyes now on how the low cost carriers, Jetstar and Tigerair, will deal with the change.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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