is anyone able to advise/ confirm if the following will be legislated and no business can charge more than the capped fee for usage of a credit card to pay for flights, goods, cruises, travel agents, services etc?
All that changes from July 1 2017, when the
interchange fees will be capped at 0.8% for all Australian-issued Visa and
MasterCard credit cards, as well as American Express 'companion cards' issued
by ANZ, Commonwealth Bank, NAB and Westpac in their popular two-card 'combo'
packages.
I don't think your interpretation of what this means is likely to be correct. This is only the fees that the banks are charged, but on top of that you have the fees that the bank charges the merchant, normally itself more than 0.8%.
The changes limiting the amount merchant's can charge has already been introduced (Sept 2016 from memory), that's why Qantas & Virgin changed their Credit Card fee structures.
There are different types of fees involved, and the two rules affect two different fees.
Interchange Fees - these are fees paid to your bank (as issuer of the card), when you use your card. This is the fee being limited to 0.8%
Merchant Fees - these are the fees charged by the merchants banks when you use your card at that particular business. This is the fee that is used to determine the amount a business can surcharge (and will generally be more that the Interchange fee)
Hi Guest, join in the discussion on
new capped credit card fees
sydney52
sydney52
Qantas - Qantas Frequent Flyer
Member since 03 Apr 2016
Total posts 1
is anyone able to advise/ confirm if the following will be legislated and no business can charge more than the capped fee for usage of a credit card to pay for flights, goods, cruises, travel agents, services etc?
All that changes from July 1 2017, when the interchange fees will be capped at 0.8% for all Australian-issued Visa and MasterCard credit cards, as well as American Express 'companion cards' issued by ANZ, Commonwealth Bank, NAB and Westpac in their popular two-card 'combo' packages.
neilm
neilm
Member since 18 Feb 2017
Total posts 3
I don't think your interpretation of what this means is likely to be correct. This is only the fees that the banks are charged, but on top of that you have the fees that the bank charges the merchant, normally itself more than 0.8%.
Greg84
Greg84
Member since 03 Nov 2014
Total posts 130
The changes limiting the amount merchant's can charge has already been introduced (Sept 2016 from memory), that's why Qantas & Virgin changed their Credit Card fee structures.
brinkers
brinkers
Qantas - Qantas Frequent Flyer
Member since 16 Jun 2011
Total posts 233
There are different types of fees involved, and the two rules affect two different fees.
Interchange Fees - these are fees paid to your bank (as issuer of the card), when you use your card. This is the fee being limited to 0.8%
Merchant Fees - these are the fees charged by the merchants banks when you use your card at that particular business. This is the fee that is used to determine the amount a business can surcharge (and will generally be more that the Interchange fee)