Qantas and Virgin Australia have hit back at claims they gouge customers with excessive fees for credit and debit card bookings.
The airlines said they in fact undercharge as the fees do not cover the service costs related to card acceptance such as fraud prevention measures.
Qantas’ government affairs officer Andrew Parker told a government hearing into the issue that the airline recovered just 81% of card fees over the past year.
Virgin Australia’s Adam Thatcher declined to give an exact amount to the inquiry but also said it fell well short.
Consumer advocate Klaus Bartosch told the Senate committee the average merchant fee imposed by MasterCard and Visa was 0.81%.
Bartosch claimed Qantas’ fees were three times the average while budget carrier Jetstar’s surcharges were as high as 20 times the average fee on some fares.
Labor senator Sam Dastyari said it should cost no more than ‘a couple of cents’ to accept a card payment.
"This is a rort being perpetrated on Australian taxpayers and consumers. They can fly you half way round this giant continent for $70 but it costs them $8 just to process a fee online?" Dastyari said.
The federal government last month proposed a cap on card processing surcharges but has yet to reveal full details.
