From: Noodle on
Hello.

Why is Tiger Airways Australia so analy-retentive about AUSTRALIAN-
ISSUED MASTERCARD *DEBIT* cards?

Why does it charge $8 more, if you do do not use an AUSTRALIAN-ISSUED
MasterCard Debit card?

Does MasterCard pay Tiger Airways a commission for their use?

Does MasterCard have more anti-fraud measures for MasterCard Debit
cards, than a normal MasterCard credit card?

Why does it cost EIGHT dollars cheaper to use a MasterCard Debit
card? And wy $8? Why not $10, or $5 or $15?

Noodle.
From: David Clayton on
On Sun, 20 Jun 2010 01:11:44 -0700, Noodle wrote:

> Hello.
>
> Why is Tiger Airways Australia so analy-retentive about AUSTRALIAN-
> ISSUED MASTERCARD *DEBIT* cards?
>
> Why does it charge $8 more, if you do do not use an AUSTRALIAN-ISSUED
> MasterCard Debit card?
.........
Actually is is $6 more than their "Tiger Raw" fare, and probably because
Tiger have a special deal with MasterCard in Australia that allows these
cards to be used at a much lower fee than the others.

As someone who used to work in retail and researched the card payment
systems in this country, I can tell you that it (generally) costs a
retailer a small amount to process a debit transaction on a local card
(less than 50c regardless of amount), but international cards are not part
of the local EFT system and weren't even available to be processed as
Debit transactions, I can only assume that these have to be processed as
Credit transactions and these will have a fixed percentage fee. Since
Tiger also charge this same fee for all Credit card transactions, then
that is the reason.

As a side issue, when you pay by EFTPOS using your bank account in this
country, the retailer can actually end up being paid a fee for the
transaction (and more if you get cash out!) if the rebates are more than
the fee charged by their EFT provider.

International cards also have a way higher fraud rate, which is why all
card issuers charge way higher fees for transactions (that sort of crime
does cost the consumer in the end.....) You are looking at 2 to 4 times
the fee for an International card, more if it isn't used in an actual card
terminal.

As far as the fixed fee goes, that seems to be something weird the airline
industry has adopted and it is basically a bizarre rip-off for smaller
fares and a subsidy of those paying big fares (the change-over is around
the $750 sector fare level). They probably justify it by saying it is
"simpler" for consumers to have one fixed fee rather than having a
multitude of possible different fees that would reflect that actual cost
of the card transaction.

I assume that Tiger charge as much as the market will bear, and it is a
nice little earner for them, because it is hard to believe that costs them
that much in bank fees - the benchmark for a company like that with their
turnover would be around 0.8% (if not less) of transaction value for a
local credit card.

If Tiger didn't have a good card fee deal with their bank - or one of the
non-bank EFT providers like Tyro who are much cheaper than Australian
banks - then they are idiots (like most retailers using EFT in this
country who still use bank providers and pay through the nose).

--
Regards, David.

David Clayton
Melbourne, Victoria, Australia.
Knowledge is a measure of how many answers you have, intelligence is a
measure of how many questions you have.

From: Noodle on
Thanks for the answer, David.

Good to know the real story.

Cheers,

Noodle.
From: BernieFlyer on

"Noodle" <oznoodle(a)gmail.com> wrote in message
news:0f9558b2-0a08-4010-957b-0fdc730225ae(a)k25g2000prh.googlegroups.com...
> Hello.
>
> Why is Tiger Airways Australia so analy-retentive about AUSTRALIAN-
> ISSUED MASTERCARD *DEBIT* cards?
>
> Why does it charge $8 more, if you do do not use an AUSTRALIAN-ISSUED
> MasterCard Debit card?
>
> Does MasterCard pay Tiger Airways a commission for their use?
>
> Does MasterCard have more anti-fraud measures for MasterCard Debit
> cards, than a normal MasterCard credit card?
>
> Why does it cost EIGHT dollars cheaper to use a MasterCard Debit
> card? And wy $8? Why not $10, or $5 or $15?
>
> Noodle.

If one looks at Jetstar they have their own branded MasterCard and charge NO
BOOKING FEE if you use it.

Bernie

From: Mr.T on

"BernieFlyer" <bernieflyer(a)gmail.com> wrote in message
news:1J-dnXnH5aB8NoPRnZ2dnUVZ_u2dnZ2d(a)netspace.net.au...
> If one looks at Jetstar they have their own branded MasterCard and charge
NO
> BOOKING FEE if you use it.

And still charge you if they cancel your flight and refuse to give you a
suitable alternative!

MrT.


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