Consumer 'rage' to kill airlines' credit card surcharges

CONSUMERS - and this man in particular - appear to have done what the RBA couldn't by ending over-the-top credit card fees.

CONSUMERS appear to have done what the Reserve Bank couldn't - trigger the end of over-the-top credit card surcharges that sneakily add hundreds of millions of dollars to the cost of flights, hotel stays and taxi rides.

The Federal Government has been gobsmacked by the "palpable rage" of more than 2000 people who have completed a surcharge survey set up by a panel of expert advisers to Treasury.

Sky-high fees for travellers and shoppers

Petition fights Jetstar credit card fees

Airlines in particular have drawn the scorn of their passengers, who feel they are being ripped off when they book online and pay with plastic. Nearly 40 per cent of those who have completed the survey complained about airlines, often pointing to the $17 surcharge that applies to flights advertised at less than $100.

Take the Treasury surcharge survey

According to Visa and Mastercard, airlines should be charging little more than $1 on such a transaction.

Choice recently estimated Qantas alone is collecting $200 million a year in surcharge fees.

Qantas denies $100 million bounty from card surcharges

Assistant Treasurer David Bradbury told News Limited publications there was "particular concern" among survey respondents that surcharges were not being declared until the end of a lengthy transaction, hiding the real cost of tickets.

Klaus Bartosch started a Chang.org online petition to stop exorbitant credit card surcharges which has attracted 43,000 signatures. Picture: Richard Gosling

"Thousands of people have responded to this survey and there is palpable rage towards some companies that are trying to gouge their customers with excessive credit card surcharges," Mr Bradbury said.

"The reality of online commerce is that people are increasingly using their credit cards to pay for goods and services, but unfortunately some companies see this as a way to profiteer."

Tell me your experiences of credit card surcharges

The survey, which is open till Friday, will underpin the expert panel's report to Treasury on how to stop the rort. The panel is due to report by the end of July. Mr Bradbury said he was determined to fix the problem. Whether he can before the election is unclear.

Take the Treasury surcharge survey

Mr Bradbury asked the expert panel for advice after the total failure of Reserve Bank of Australia action meant to end plastic profiteering. In March, the RBA limited surcharges to the "reasonable cost of acceptance". But nothing happened. It is the second time the RBA has meddled in surcharging without delivering any benefit to consumers. In fact, surcharges only came into existence after RBA changes in 2003.

One airline told News Limited the new RBA rules were so confusing its lawyers had hired other lawyers just to interpret them. That airline is willing to accept a cut in surcharges, as long as it doesn't end up losing money on accepting payment by card. Another airline expressed a similar view.

Some of the survey respondents are among the 43,000 people who have signed an anti-surcharge Change.org petition set up by Gold Coast businessman Klaus Bartosch.

Sign the Change.org petition

"This is a scourge of phenomenal proportions and not enough is being done about it," Mr Bartosch said.

Contact John Rolfe on Twitter. @costofliving