Air NZ lifts long haul card fees

Air NZ has made changes to the card fees it charges customers, prompting a consumer watchdog to question whether the airline’s domestic travellers have been subsidising international travellers for years.

The airline has increased credit card surcharges on all international travel, with the fees on long haul services rising by nearly a third. At the same time domestic airfares have become slightly cheaper in order to more accurately reflect the cost of processing card payments, an Air NZ spokeswoman said.

If a customer paid for a domestic airfare by credit card, debit card or charge card, a surcharge of $2.80 per person one way would be added to their booking, a reduction from $4 previously charged. Card payment fees for short haul fares to Australia and the Pacific Islands have increased from $6 per person one way to $7.10. Card fees on Bali airfares increased from $12 to $13.20 per person one way.

Long haul fares to Asia, North and South America and London have increased from $17.50 to $22.60 per person one-way.

‘‘We have carried out a review to make sure fees collected from customers accurately reflect the cost to process card payments and have adjusted our fees as a result,’’ the spokeswoman said.

To avoid fees, customers could pay using online payment tool POLi, Airpoints Dollars, or cash if booking through a travel agent.

Consumer NZ spokeswoman Jessica Wilson said companies’ card fees should amount to only the actual cost of processing the payment. Based on Air NZ’s reduction of domestic card surcharges it would appear it had previously been set too high, she said. ‘‘The reduction suggests domestic consumers have been subsidising international consumers,’’ Wilson said.

‘‘It indicates the company has been earning more than is necessary than just to cover the costs of that transaction.’’

Consumer NZ wanted to know what the airline was doing now it had recognised domestic customers were being overcharged, she said. ‘‘It may be refunds to customers or some other action to account for ... taking more revenue than required.’’

She said there could be grounds for a Commerce Commission investigation.