AUSTRALIA- Choice, a consumer watchdog, has released a study that reveals that Qantas just be might be making millions in profits from its credit card surcharges alone. Surcharges are supposed to cover the cost of running a credit card payment. However, Choice spokesman Matt Levy says that Qantas could be charging consumers $100 million a year more than is necessary to cover processing costs. Qantas charges $7.70 for credit card payments on domestic flights and $30.00 for international flights.
The study was based on monthly traffic and capacity statistics for a year ending February 2012. The study compared the amount airline passengers are charged for using their credit card and the average merchant service fee paid by all merchants, which is only 0.86% for both Visa and MasterCard.
Choice contacted Qantas to ask for more information about their actual costs for credit card processing because Qantas does not make that information available. A spokesperson for Qantas denied that the company makes a profit from credit card surcharges.