Virgin Australia announces new credit card booking fees

Posted: 31 August 2016 11:27 am


Virgin Australia has revealed the new surcharges customers will pay when booking flights with a credit card as of September 1.

In May, the Reserve Bank of Australia introduced a ban on flat-rate credit card surcharges in an attempt to regulate excessive credit card surcharges. The ban will come into place as of 1 September, so Virgin Australia has released its new credit card booking fees just in time to prepare for the new surcharge regulation tomorrow. Unfortunately, after comparing the current and new booking fees, the new regime might leave some flyers worse off than the flat-rates.

You can compare the different costs that will apply before and after 1 September 2016 below.

New booking fees that will apply on Virgin Australia flights as of 1 September 2016

Flight type Credit DebitPaypal Fee cap
Domestic and trans-Tasman1.3%0.6%$5.00$11.00
International short haul1.3%0.6%$5.00$70.00
International long haul1.3%0.6%$5.00$70.00

Previous flat-rate booking fees

Flight type Credit, debit and PayPal
International short and long haul$30.00

While the ban of high flat rates on credit card surcharges was designed to curb excessive fees, this may have the opposite impact on some long-haul international flights. For example, while a Sydney to London (Heathrow) business class return flight with Virgin Australia currently attracts the $30 flat rate, the same flight will collect the new $70 fee cap after 1 September. While you would have had to have paid $7.70 on a return economy flight from Sydney to Melbourne worth $245.00, though, you'll only have to pay a booking fee of around $3.19 from September onwards. So, you will make some savings depending on the cost of your flight.

Virgin's new booking fee structure matches the rates Qantas announced in July, so you'll have limited options if you want to avoid these higher fee caps on long-haul international flights from Australia.

Airline credit card surcharges: what's changing

Picture: Shutterstock.

Get more from Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site