Westpac credit charge surcharge for paying a speeding fine - can't the Govt get better banking deals?

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Forums › Finance and wealth management › Westpac credit charge surcharge for paying a speeding fine - can't the Govt get better banking deals?

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#938599 21-Nov-2013 19:24

Also, when you consider that the nature of fines is likely to be skewed towards a demographic who are likely to be more risky when it comes to then repaying that fine they put on credit - therefore, this could translate into a higher merchant fee (Speculation)

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ahmad

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#938688 21-Nov-2013 21:52

nickb800: The comparison with NZTA is interesting - when they first offered the option of rego renewal (and the like) online, there was a 2-3% surcharge, meanwhile paying cash/eftpos in a post shop carried no surcharge (althogh I'm sure NZPost charges NZTA a nice transaction fee). Glad NZTA finally fixed that anomaly, perhaps Police will see the light - AFAIK credit card online payments for fines is a recent development.

Huh? NZTA only recently introduced a credit card surcharge. Had been free for ages.

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#938704 21-Nov-2013 22:23

ahmad:
nickb800: The comparison with NZTA is interesting - when they first offered the option of rego renewal (and the like) online, there was a 2-3% surcharge, meanwhile paying cash/eftpos in a post shop carried no surcharge (althogh I'm sure NZPost charges NZTA a nice transaction fee). Glad NZTA finally fixed that anomaly, perhaps Police will see the light - AFAIK credit card online payments for fines is a recent development.

Huh? NZTA only recently introduced a credit card surcharge. Had been free for ages.

Maybe showing my age haha - i remember when it went from surcharge to no surchage, perhaps 5 years ago

richms

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#938721 21-Nov-2013 23:17

If you dont like the 3% of your fine to not have to go to a bank with cash, then go to the bank with cash?

If its not worth 3% then you either have a really large fine, or do not value your time properly.

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#938782 22-Nov-2013 08:30

richms: If you dont like the 3% of your fine to not have to go to a bank with cash, then go to the bank with cash?

If its not worth 3% then you either have a really large fine, or do not value your time properly.

I think this is a good point.

not only do you have other "less convenient" methods of payment, but the convenience fee is actually not such a large amount in the grand scheme of things - especially when you factor in taht you are obtaining up to 55 days of extra time before you need to pay any interest on it - therefore making the payment further delayed.

If a fine was (for instance) $80.00, then the 3% convenience fee would be $2.40

What can you buy for $2.40? What would it cost you in gas to drive to the nearest bank/agency to pay the fine?

It's all relative, I suppose, but it doesn't seem outrageous to me...just off-putting.

In saying that, I haven't had to pay a fine in at least a couple of decades, so it's a bit of a moot point.

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cr250bromo

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#938792 22-Nov-2013 08:46

A fairly recent development is you can now pay these fines via internet banking which avoids the credit card surcharge. Paid my last fine this way with no problems.

/ben

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#938819 22-Nov-2013 09:41

Handsomedan:
not only do you have other "less convenient" methods of payment, but the convenience fee is actually not such a large amount in the grand scheme of things - especially when you factor in taht you are obtaining up to 55 days of extra time before you need to pay any interest on it - therefore making the payment further delayed.

That's assuming that paying a fine isn't treated as a cash advance in which case you can kiss your 55 days goodbye.

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ahmad

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#938820 22-Nov-2013 09:44

Honestly these fines have no "cost" involved to the collector so payment >>>>> non-payment. Just let people pay without extra hurdles. Quite happy for people to get a 2% discount on their fine as long as they are paid (refer to $millions unpaid)

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#938860 22-Nov-2013 10:37

Bung:
Handsomedan:
not only do you have other "less convenient" methods of payment, but the convenience fee is actually not such a large amount in the grand scheme of things - especially when you factor in taht you are obtaining up to 55 days of extra time before you need to pay any interest on it - therefore making the payment further delayed.

That's assuming that paying a fine isn't treated as a cash advance in which case you can kiss your 55 days goodbye.

You'd have to assume it's treated as a purchase...wouldn't make sense to treat it any other way.

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Bung

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#938895 22-Nov-2013 11:36

Handsomedan:You'd have to assume it's treated as a purchase...wouldn't make sense to treat it any other way.

From BNZ credit card terms & conditions

"Pre-selected bill payees may have pre-arranged with us to
accept Card payments. In the case of Visa or MasterCard, we
may elect to treat such Bill Payments as either a purchase
or Cash Advance."

"Bill Payments from self-selected bill payees are treated as
Cash Advances. They will attract a Cash Advance fee and
interest will apply immediately until the Cash Advance is
paid in full. Self-selected bill payee payments do not earn
loyalty points."

ajobbins

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#938900 22-Nov-2013 11:38

Bung:
Handsomedan:You'd have to assume it's treated as a purchase...wouldn't make sense to treat it any other way.

From BNZ credit card terms & conditions

...

That refers to making a payment via Internet Banking to a bill payee, not paying online via a website/payment portal.

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#938907 22-Nov-2013 11:47

just had another thought - most places charge you 1-1.5% ( i can't remember which) ... whether they are absorbing it or westpac is cashing in ...

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#938943 22-Nov-2013 12:22

joker97: just had another thought - most places charge you 1-1.5% ( i can't remember which) ... whether they are absorbing it or westpac is cashing in ...

That's a surcharge, levied by the merchant - usually reflects the merchant service fee they pay...most of which would be far beyond 1-1.5%.

Large corporates might just about be able to get MSF at close to 1.5%, but when some interchange rates (which are only part of the cost) are as high as 2.05%, it's fairly unlikely they're covering the cost of accepting cards by surcharging - simply off-setting it.

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nate

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#939016 22-Nov-2013 13:53

nickb800: AFAIK credit card online payments for fines is a recent development.

It's not. I've been donating part of my salary for many years now to our fine boys in blue. As longs as I can remember there's been a CC surcharge.

gundar

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#939056 22-Nov-2013 14:47

Everybodies whinning about banks fees and the government. The Police's ecommerce project is not a retail outlet, they have no competition. Their clients are literally breaking the law to be there, plastic in hand...

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