Bernard Hickey explains the reasons New Zealand authorities should move to limit excessive credit card fees

Bernard Hickey explains the reasons New Zealand authorities should move to limit excessive credit card fees

The Reserve Bank of Australia has moved to limit the charging of excessive fees for using a credit card in Australia.

Bernard Hickey is calling on the New Zealand authorities to do something similar.

A key reason is that there is usually little or no practical choice, especially when purchasing online.

And it is unclear who actually regulates or approves merchant or issuers behaviour relating to credit card use in New Zealand.

The airlines are one of the main users of these fees and they can amount to a significant percentage of the transaction - up to 10% or more in some cases.

The Australian rules now require merchants to charge no more than the direct costs involved.

Bernard Hickey reports that Jetstar is moving to rename the fee a "booking fee" to get around the rules in Australia and is likely to do the same in New Zealand.

He spoke to Rawdon Christie on the TVNZ show Breakfast this morning.

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3 Comments

So then just force the airlines to include the booking fee in the cost so it's invisible. Then it's airline price vs airline price.
It's about time the same thing was done with the likes of Ticketek, etc. The fees are a total ripoff.

Banking business no suprise here. Credit cards AKA loan sharkes in disguise, or not so much disguise when you get the bills. 
Example National bank of New Zealand, claim to help small businesses etc. Ok so in 2011 I went over my OD limit by a couple of hundred dollars, any money overdrawn is charged at an excessive 28%!!!  That really helps small business aye, why would you even lend at this rate it financial suicide, I wouldve preferred no credit allowance here, but they were quite happy to let it go through without even telling me, plus the $25 dollar fee each time its overdrawn.....
. My OD interest rate at the time was a ridiculous 18% and it was a secure backed overdraft, backed by a million dollar equity business (with no loans) with another bank (that was their excuse that it was with another bank and if something happened to that business they wouldnt have first rights to getting their money if my businees happened to fail) they didnt want to see financial records, no they just wanted to keep their high OD limit on me.......strange?
So of course withdrew and found credit through my backer, which should've done in the first place............mate my struggles with the bank has been unbelievable and my reason for now being with Kiwibank, who are great and I feel good supporting NZ, not sure why more kiwis havent cottoned on to this......
Another time in 2011 had a business banker from National bank ring me wanting me to buy insurance through them. I was applying for an short term OD, couple of thousand I think at the time and I had previous OD of 70,000 at times in 2008 (yeah they were a bit too loose back then!)
When I said I didnt need insurance as I had family backing the person put a guilt trip on me as to why I should get insurance. It ended with them saying to me ....ITS ONLY $6 PER WEEK, YOU CAN AFFORD THIS !  they were really aggressively and I hung up the phone. How dare they bully people in to these things. That is what made me switch to Kiwi and I never had a problem since

Why do ANZ National even lend at 28% on overdrawn OD? is that responsible lending? 
Investigation here Bernard?