TeeTMI Posted March 12, 2014 Share Posted March 12, 2014 Credit card merchant fees to be charged to applicants From 22 March 2014, the Department is implementing changes to enable the recovery of credit card merchant fees from clients via a surcharge on credit card payments for visa application charges (VACs) and other fees and charges. Full details of the surcharge will be communicated on the DIBP website from 22 March 2014. Link to comment Share on other sites More sharing options...
Alnaibii Posted March 13, 2014 Share Posted March 13, 2014 Is this for credit card only; or for any type of card payment? Thank you! Link to comment Share on other sites More sharing options...
vickyplum Posted March 13, 2014 Share Posted March 13, 2014 It will be credit card only - no fees can be charged if you use debit card. Is this for credit card only; or for any type of card payment? Thank you! Link to comment Share on other sites More sharing options...
twister292 Posted March 13, 2014 Share Posted March 13, 2014 It will be credit card only - no fees can be charged if you use debit card. Not necessarily. If a card uses the Visa or MasterCard system to process the transaction, the bank charges are very similar. The only system in Australia which evades that is the eFTPOS system, which unfortunately cannot be used for online payments generally. eFTPOS-based transactions have a per-transaction charge rather than a percent charge on the total value. The online system for DIAC doesn't distinguish, for example, a Visa credit card from a Visa Debit, or Visa Electron for instance. It treats a debit mastercard the same way as a "normal" master-card. However, Australian banks do have the ability to detect whether a card is a domestic debit card or an international one. I think the only fee-free options left would be payments through local eFTPOS (bank) cards at DIAC offices or bank cheque/money order payments. Link to comment Share on other sites More sharing options...
wrussell Posted March 13, 2014 Share Posted March 13, 2014 I think the only fee-free options left would be payments through local eFTPOS (bank) cards at DIAC offices or bank cheque/money order payments. Only if lodging a paper application, which are a threatened species. Although some people have had debit cards accepted for online payments, the DIBP state - Debit Cards in person. When I pay ALDI the surcharge for using a credit card is 1/2% and nil for a debit card. I wonder what surcharge the money grubbers will impose? Link to comment Share on other sites More sharing options...
twister292 Posted March 14, 2014 Share Posted March 14, 2014 Only if lodging a paper application, which are a threatened species. Although some people have had debit cards accepted for online payments, the DIBP state - Debit Cards in person. When I pay ALDI the surcharge for using a credit card is 1/2% and nil for a debit card. I wonder what surcharge the money grubbers will impose? I think we'll have to see what exactly they define as a "debit" card. If they mean EFTPOS-only cards (or the option of pressing "CHQ" or "SAV" on the terminal), then it's a complete money grab, because online transactions appear to the bank's system just as you would press "CR" on the EFTPOS machine at Woolies or Coles. If DIBP's payment gateway provider is smart enough to distinguish a Visa/MC debit from a proper Credit card (Woolies' EFTPOS machines do that, they disable the CR option on debit cards unless you do a "paypass"), there might be some respite. Otherwise, it's another 1-2% on top of the VACs which have already increased by ridiculous amounts... BPAY would be a good option, but that's only useful for onshore applicants... PS You can't beat Jetstar/Qantas for their CC payment surcharge...last time they wanted $7 on a $71 fare I booked from MEL to SYD... Link to comment Share on other sites More sharing options...
wrussell Posted March 14, 2014 Share Posted March 14, 2014 I was advised by ALDI that if I 'paywave' with a debit card it counts as a credit transaction to which a surcharge applies, but id I insert the card no surcharge applies. My credit union started charging $2 a month for the 'new technology' on each of my debit cards, so I cancelled all except one card. Interestingly (in my experience) banks will crash a transaction if the wrong transaction type is selected, but the credit union will access the relevant account. Link to comment Share on other sites More sharing options...
Tau Posted March 19, 2014 Share Posted March 19, 2014 Only if lodging a paper application, which are a threatened species. Although some people have had debit cards accepted for online payments, the DIBP state - Debit Cards in person. When I pay ALDI the surcharge for using a credit card is 1/2% and nil for a debit card. I wonder what surcharge the money grubbers will impose? I want to pay my subclass 190 application fee using a uk debit card online (through immiaccount). Can you tell me if DIBP going to accept payment from this card? Link to comment Share on other sites More sharing options...
twister292 Posted March 19, 2014 Share Posted March 19, 2014 I was advised by ALDI that if I 'paywave' with a debit card it counts as a credit transaction to which a surcharge applies, but id I insert the card no surcharge applies. My credit union started charging $2 a month for the 'new technology' on each of my debit cards, so I cancelled all except one card. Interestingly (in my experience) banks will crash a transaction if the wrong transaction type is selected, but the credit union will access the relevant account. Actually with most banks (3 that I've had experienced with), pressing SAV or CR on a debit card does the same thing, except for SAV routing the money through the Australia-wide eFTPOS network and CR using the Visa/Mastercard network. And yes, you're correct on the Paywave/Paypass transactions. They are routed through Visa/Mastercard, and the corresponding merchant fees apply which the retailer may pass back on to you. My banks don't charge extra for the newer cards, but their default fees are a lot higher than $2 a month (to the tune of $6ish but I have exemption due to a preferential arrangement between my workplace and the bank). Link to comment Share on other sites More sharing options...
Levi Posted March 19, 2014 Share Posted March 19, 2014 @TeeTMI @Alnaibii @wrussell : It's English, but I don't get it (perhaps because banking works a bit differently where I am now) : “Credit card merchant fees to be charged to applicants” “to enable the recovery of” - does this mean that DIBP will charge a certain amount when migrants pay their VACs? Or the department has lost something it needs to “recover” from certain people? Link to comment Share on other sites More sharing options...
Alnaibii Posted March 19, 2014 Share Posted March 19, 2014 Usually there are some bank fees attached to any card transaction, 0.3 to 1%, paid by seller. DIBP wants to transfer this fee to the buyer. Link to comment Share on other sites More sharing options...
Simonr Posted April 8, 2014 Share Posted April 8, 2014 So how much are the charges going to be? Anyone heard yet? There's nothing quoted on the website yet. Link to comment Share on other sites More sharing options...
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