Travel agents booking through Europe Holidays, World Holidays and TravelRez won’t have credit card fees deducted from their earnings, with Magic Tours International set to absorb the cost from October 1.
The change will apply to bookings made through the group’s office, websites and TravelRez FIT platform, allowing consultants to retain their full commission and markup when clients pay by credit card.
From October 1, major card networks including eftpos, Mastercard and Visa will introduce no-surcharge rules following changes to payment regulations by the Reserve Bank of Australia, meaning merchants will generally no longer be able to add card payment surcharges. (Reserve Bank of Australia)
Under the new Magic Tours process, agents will receive a secure payment link to forward to clients. Once payment is made, the company will absorb the card fee and transfer the consultant’s commission and any eligible markup directly to the agency’s nominated bank account.
Chip Popescu, Magic Tours International Managing Director, said the initiative was designed to prevent the regulatory change from eating into agency margins.
“Australian agents shouldn’t have to choose between staying compliant and staying profitable,” Mr Popescu said. “Book with us the way you always have, quote your client the full price including your markup and keep every dollar of it. We’ll take care of the card fee.”
The arrangement covers flights, accommodation, tours, cruises and packages and applies to the group’s standard invoice price plus consultant markups of up to $500 per booking.
