Air New Zealand offers a choice of payment methods for customers when paying for their flights including Credit, Charge or Debit Cards, Airpoints Dollars™, Air New Zealand Travelcard, by cash or EFTPOS at a Travel Agent or Online banking (POLi).
Air New Zealand wishes to advise that from 15 December 2010 a Card Payment Fee (CPF) will be collected for all Air New Zealand tickets issued in New Zealand on 086 paper and paid for by credit, debit or charge card. The reason for the introduction of this charge is to recover some of the costs to the airline associated with credit, debit and charge card transactions.
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What is the CPF?
CPF stands for Card Payment Fee and will be collected on all tickets issued in New Zealand on 086 paper from 15 December 2010.
Why are we doing this?
Credit card companies charge Air New Zealand for transacting credit, debit and charge card payments and we are looking to recover some of this cost.
How much is the fee?
From 24 May 2011 bookings paid for by credit, debit and charge card will incur the following fees per person per one-way journey (infants are exempt.)
- $4 for domestic New Zealand fares
- $6 for short haul Tasman and Pacific Island fares
- $12.00 for Bali fares
- $17.50 for long haul fares
Does this apply to all fares worldwide?
CPF was introduced into Australia point of sale in Sep 09. The introduction of the fee at this time is for New Zealand point of sale and regardless of fare origin. i.e. CPF will apply for travel originating outside of New Zealand when ticketed here.
What if I’m not flying direct – do I have to pay two fees?
No, your GDS will quote on the basis of a per direction component. The fee applies to a per direction on a per person basis.
For example:-
1. AKL-WLG-NSN - same day and same fare basis = 1x CPF charge of $4
2. AKL-WLG then WLG-NSN - either same day and different fares or different days and different fares = 1x CPF charge of $4
3. AKL-WLG then return WLG-AKL = 2x CPF or total of $8
If you purchase a one-way fare from Auckland to London via Los Angeles, the Card Payment Fee is $17.50 even though the itinerary includes two separate flights.
How is the CPF collected on online bookings?
For direct bookings made online the CPF will be charged per fare component unlike the GDS (per direction) until further notice.
What if I stop over?
As long as the sectors make up a through fare then only one fee will be charged per one way journey.
What about RTW or Circle Pacific Fares?
RTW and CPF are treated as return fares and therefore a $35 CPF applies to RTW or Circle Pacific Fares.
How do I collect the CPF?
The CPF will be returned during the fare quote process where an NZ designator flight is included in the itinerary
What happens if I manually construct a fare that won’t auto price?
Manually constructed fares will need to have the CPF manually calculated and included as a YR charge on the ticket.
What happens when I need the YR box to collect other charges like change fees?
The YR taxes and charges code will continue to be used to collect other charges such as ticket change penalty fees. Where the YR code is required to collect CPF and other charges the two should be added together and shown as a total. The most common use of the YR code currently is change fees. As CPF does not apply to reissues the CPF portion will show as paid YR and the change fee as additional YR.
How can passengers avoid paying a CPF?
There are a number of alternative payment methods available:
- Cash or EFTPOS through a travel agent
- Air New Zealand Airpoints Dollars™
- Air New Zealand Travelcard
- Internet banking (POLi)
How does CPF get removed from Travelcard transactions?
CPF does not apply to Air New Zealand Travelcard. In this instance agents have two options (in both cases the customer does not pay a CPF)
- Manually remove the CPF at the point of ticketing or
- Ticket with CPF – in which case the Travelcard process will remove the CPF at the point of invoicing as a rebate
How do I remove the CPF where a customer is paying by a method other than Credit, Debit or Charge Card?
Fare quote excluding the CPF or alternately (if payment method is not known beforehand) remove the CPF after the fare quote).
What are the GDS entries to fare quote excluding the CPF and to remove it after a fare quote?
| Amadeus |
Price Excluding YR charges
|
| Galileo |
| Quote and file the fare as normal and then use the following entries: *FB1 to display fare quote 1 and go into manual fare build mode. The screen will show all taxes and they will be numbered on the screen. In this example YR was tax number 4.
|
| Sabre |
Tax Exempt Pricing Formats:
|
Is the CPF applied where other UATP cards are used to pay for Air NZ tickets?
Yes
What happens if a passenger pays by credit card and I don’t collect the CPF?
If the CPF has not correctly been collected then an ADM will be issued made up of the fee plus a processing cost.
Is the CPF commissionable?
Like all Taxes and charges the CPF is non-commissionable.
What if card payment is used for only part of a ticket or a booking?
The CPF will apply to all travellers in the booking where any part of one or more tickets is paid by credit, debit or charge card.
Is CPF charged if the ticket is issued with cash then upgraded to a higher fare using credit card?
No
How do I apply the CPF to reissues and revals?
The CPF applies to new ticket issuance only; it does not apply to ticket changes. Remove the CPF from the YR during the ticket change process.
Is the CPF refundable?
Where the fare is refundable the CPF applicable to that fare is also refundable. Where the fare is non refundable the CPF is also non refundable.
Due to the incidence of agents charging their cash/eftpos customers the CPF in error, Air New Zealand wishes to advise that CPF refund requests will now incur an administration fee of $10 per ticket.
Why is there no discount for children?
Credit Card companies also charge Air New Zealand for child tickets; the CPF does not recover the full cost of credit card company charges. Infants are exempt.
Will the CPF apply to AD travel?
Whether self ticketing or through Partner Services if paying by credit,debit or charge card then yes it will
Does the CPF apply where a booking is part paid by Airpoints?
Where payment is by AirNZ Airpoints Dollars for some but not all tickets in the same booking, then all tickets will be exempt from paying the CPF.
How close to the travel date can payment be made via POLi online?
Online payment via POLi is not available to Westpac or National Bank customers within five days of travel. All other banks in New Zealand allow payment up to departure. [This is due to the settlement and reconciliation period required to manage internet bookings]
