Air New Zealand introduces new 1.1% credit card booking fee

By Chris Chamberlin, September 1 2016
Air New Zealand introduces new 1.1% credit card booking fee
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You should seek independent advice and consider your own personal circumstances before applying for any financial product.

Air New Zealand passengers will now pay a 1.1% fee on all Australian bookings paid for by credit card in line with the Reserve Bank of Australia’s reforms on credit card surcharging.

The same fee is charged whether using a Visa, MasterCard, American Express, Diners Club or JCB card, although Visa Debit and Debit MasterCard payments attract a reduced 0.75% surcharge.

These new levies replace fixed charges of $7 per trans-Tasman flight and $15 per longer international flight, or $14 and $30 for a return trip, respectively.

But unlike Qantas and Virgin Australia which cap credit card fees at a maximum of $11 on trans-Tasman bookings and $70 on other international flights, Air New Zealand’s charges apply in full to the total transaction price.

For example, book a return Air NZ business class ticket from Sydney to Los Angeles via Auckland for $8,185 and you’d encounter a $90.05 fee to pay by credit card or a $61.39 charge to use a debit card – considerably more than under the previous system.

Instead, the new rates favour travellers who book lower-priced fares as opposed to full fare business class tickets.

Those spending less than A$636 per trans-Tasman one-way flight and less than $1,363 per long-haul international flight will be charged less under the percentage-based scheme, while those booking higher-cost tickets will now be charged more.

These new credit card surcharges don’t apply on tickets issued in New Zealand, however, where the airline continues to charge NZD$6 per trans-Tasman flight and NZD$17.50 per longer international flight when paying by credit card.

Also read: Emirates introduces credit card surcharge in Australia, NZ

Follow Australian Business Traveller on Twitter:  we're @AusBT

Disclaimer

Executive Traveller may receive a commission when you apply for these credit cards via our links.

You should seek independent advice and consider your own personal circumstances before applying for any financial product.

Chris Chamberlin

Chris Chamberlin is the Associate Editor of Executive Traveller, and lives by the motto that a journey of a thousand miles begins not just with a single step, but also a strong latte, a theatre ticket, and later in the day, a good gin and tonic.

Virgin Australia - Velocity Rewards

24 Aug 2011

Total posts 752

If anyone was paying full-freight in J you would hope they could get a refund on that fee.

21 Sep 2011

Total posts 65

If I was buying a $8000 LCD TV, for example, from an electronic store and they wanted to charge me $90 credit card fee, I would walk out of there so fast. Crazy...

23 Feb 2016

Total posts 34

And at least in that case you would have the option to pay cash..

18 Mar 2014

Total posts 94

With most airlines you can pay using POLi which is basically the same as withdrawing cash.

21 Sep 2011

Total posts 65

Credit cards allow you to use tomorrow's money today. That's the whole point of credit, isn't it? I am sure a retailer would not like to lose sales because of a few merchant fee dollars. 

Qantas - Qantas Frequent Flyer

23 Mar 2012

Total posts 211

It's interesting that airlines are charging for debit cards when most retailers don't. Indeed many retailers don't charge card fees at all.

Qantas - Qantas Frequent Flyer

22 Jul 2015

Total posts 14

Well unlike a retailer where you can press 'savings' to have the transaction  processed as EFTPOS and not via the Visa/Mastercard network, it's a bit hard to do that online when you can't select savings and put in a PIN number. So debit cards are treated like a cheaper credit card and in fact at retailers who charge a surcharge, pressing the Credit option will incur the same surcharge as an actual credit card would. The devil as always is in the detail.

Qantas - Qantas Frequent Flyer

26 May 2012

Total posts 159

A little bit like blackmail, ie to get protection in the event of your airline or travel company going bust, you really need to pay by credit card. By paying the airline direct or by paying cash, you lose out on such protection. It was not so long ago that companies were prohbited from passing on card merchant fees to the customer. Alas no more!

Would be interesting to get a take on whether paying by PAYPAL (linking directly to a credit card) would incur such charges and indeed whether any such payment would give the same protection as paying with the card directly.

Virgin Blue - Velocity Rewards

25 May 2011

Total posts 10

If I use an Australian credit card to pay for an AirNZ return flight originating from YVR to MEL via AKL, would I be charged at 1.1% or the flat NZD$17.50

AirNZ site also has the option to charge in Australian dollars which may add more complication to the fine details in the new arrangement ?

Cheers

Virgin Australia - Velocity Rewards

11 Nov 2014

Total posts 34

I wonder how long the airlines will be able to keep this loop hole open. It is a blatant and obvious rip off. The ACCC should act quickly to get rid of all these charges, it is a total joke. I don't get charged a fee for using my credit card at Woolworths, what is the difference?! Already paying enough taxes and fees as a part of my ticket anyways. #Wan #Cars


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