Cathay Pacific sets new credit card booking fees

Sally McMullen 9 August 2016


Cathay Pacific is the latest airline to announce a change in booking fees in preparation for the upcoming surcharge ban.

Aussie travellers will no longer have to pay a flat rate when booking flights with Hong Kong airline Cathay Pacific. The new credit card booking fees will comply with the RBA's credit card surcharge ban that will be introduced this September.

From 1 September 2016, all Cathay Pacific bookings made with a credit card through a travel agent in Australia will be charged a percentage fee based on the total cost of the ticket rather than the current flat rate of $30 per booking. Cardholders using a Visa or MasterCard will attract a 0.99% booking fee, while American Express and Diners Club cards will be charged a higher 1.3% fee. Regardless of the price of your flight, all booking fees will be capped at $70.

In the inquiries that led to the credit card surcharge ban, the RBA came down particularly hard on airlines, which are renowned for charging massive surcharge fees. As such, Cathay Pacific is only one of many airlines announcing new credit card fees in light of the ban. In July, Qantas announced that it would be exchanging its current flat-rate credit card fee for a 1.3% booking fee. These charges will be capped at $11 for domestic or trans-Tasman flights and $70 for international travel. Last week, Virgin Australia also announced that it would introduce a percentage-based credit card booking fee next month, but it hasn't yet to reveal the exact booking fees that will be enforced.

Image: Shutterstock

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