POLi, Air New Zealand, and Credit Card Surcharges

Air New Zealand plane on tarmac
Air New Zealand. Crazy about rugby… and surcharging customers

Air New Zealand is a quality brand. I like their in-flight snacks, don’t mind paying slightly more for their reputation of reliability compared to their domestic route competitor JetStar, and I appreciate their creative safety videos and the fact they are slightly more interesting to watch multiple times.

Then there is POLi. POLi sounds friendly.

If you can use POLi, it saves you from Air New Zealand’s excessive credit card surcharge fees by letting you use a bank transfer to pay for flights. You can’t use it if you’re in New Zealand and have a Mac. This rules me out. Apparently the Australian POLi now works with Macs fine.

ASB and BNZ </3 POLi

Last year banks started warning against using POLi because how it operates to verify you are actually paying Air New Zealand and friends is a bit suspicious.

Interestingly, Air New Zealand isn’t even listed in that Stuff article, even though they’re likely the biggest company using POLi in New Zealand, and are featured on POLi’s website.

Providing your log in details to a third party will be in violation of the internet banking terms and conditions you’ve agreed to, and potentially opens you up to being liable for losses.

There is the possibility of an additional motive going on here: banks sell credit and debit cards, and those cards make them money. POLi is quite an attractive alternative because it saves you something like $8 on a return domestic flight.

Air New Zealand’s Surcharging

This surcharging is extortive, misleading, and unlike airplanes that come on time, Peter Jackson spoofs, and free-but-not-really-free cookies, doesn’t endear Air New Zealand to me. Especially on domestic flights.

It’s presented as a transaction charge to recover costs (“Air New Zealand needs to recover this cost”), but it gets charged multiple times in the same card transaction. When I pointed this out to Air New Zealand they ignored me.

Air New Zealand pay something to accept credit cards, but that is not $4 per person flying, per direction they are flying. Instead of passing on the percentage they are actually charged, which Bernard Hickey’s industry experts say would be less than 1%, they charge a fixed fee multiple times in the same card transaction.

A group booking shows how ridiculous this gets. I once flew with a dozen or so people, and each person was charged $4 there, and $4 back, even though the flights were booked over just two transactions. To their credit Air New Zealand refunded close to $100 of fees after I called them.

Air New Zealand even issued a press release in 2008 chastising Pacific Blue for, among other things, their $4 per sector card surcharge because Pacific Blue offered no alternative payment. Kind of like what Air New Zealand does to Mac users. Or what they do to anyone following the advice of banks. (I’m ignoring Airpoints and Travelcard as payment methods because they aren’t accessible forms of payment for a lot of people.)

The ComCom have “investigated” the matter, concluding that the “card payment fee is used to recover all of the direct and indirect costs associated with credit cards payments.” The key word here being indirect, I think.

To be fair to Air New Zealand, JetStar charges $5 per flight for card transactions, but let’s be honest, JetStar are a hot mess, and Australian, and you shouldn’t be booking with them anyway.

Either way, it’s interesting to see these surcharges creep up over time, for cost recovery purposes, I’m sure. Are the airlines poor negotiators when it comes to their merchant agreements? I wouldn’t think so.

To quote ex-Air New Zealand Chief Operating Officer Andrew Miller: “research feedback shows customers are keen for… one easy to understand price with no added levies to the fare”.

Tomorrow: Ticketek, Ticketmaster and their fees (including the emailing-you-a-PDF surcharge). Maybe. Probably not.

Image credit: me

The 1½ Star Apple Product

Okay, I lie. That’s for the 65W one, the 85W one I have actually gets 2 stars.

Introducing the Apple MacBook power adapter, possibly the worst rated Apple product around.

Mine has been slowly breaking near the end that connects to the computer for the past month. I’ve now become skilled at what I have to do to get it to work after it’s plugged in (the very technical approach of jiggling) but touching anything in the vicinity the wrong way will cause the charger to stop working again.

It’s been about one and a half years after I bought the Mac, so it definitely shouldn’t be breaking so soon, but that also means that I’m outside of the one year warranty. I didn’t buy AppleCare, because, you know, I live life on the edge. And also because it’s freakishly expensive at $600. Laptops are probably the only thing that I’d consider buying an extended warranty for, but I wouldn’t have chosen a Mac if I thought it would need $600 worth of repairs before it was three years old. Also, we have the Consumer Guarantees Act.

The 15 minute call

So I called Apple. I’d reMacBook Pro with chargerad on an Instructables post that some people had good experiences calling up Apple and receiving a new charger even outside of their warranty period. Their reasoning being because Apple knows the chargers are poorly designed (but nice to look at) they will replace them.

I called Apple, and I think spoke to someone in Australia. Side note: outsourcing is fine by me if it doesn’t interfere with getting stuff done for the customer, which in Apple’s case it kind of does.

The second person I spoke to, in his defence I think he was foreign to Australia, didn’t know much about the geography of New Zealand.

Their list of Christchurch repairers was outdated and I was given Yoobee’s earthquaked Moorhouse Ave location, prompting a humorous response from the rep: “If they’re listed here they should be open. Otherwise it would defeat the purpose of my list.” I can’t imagine a list of Apple stores being outdated.

And according to an Instructables comment, if I was in the USA this could have all been done by courier, or according to Yoobee’s staff, if we actually had Apple stores here in New Zealand (which the international phone reps often assume) I could have just walked in and got a new charger straight away.

I tell the rep what’s wrong with the charger: it’s broken at the moment, when I plug it in sometimes it works but the majority of time it doesn’t and I have to play around with it to get it to work. We go through my serial number (which today I found out has SWAG in it), whether it’s the original charger, the purchase date, my lack of AppleCare and my email address. I get told it’s outside of warranty and some dubious information about incorrect watt adapters blowing up. I bring up the endless one star reviews, he says he’s read them the other day and most are because of blown up chargers[citation needed]. I drop four magic words: the Consumer Guarantees Act, get told I should contact the Ministry of Consumer Affairs and then talk to Apple’s legal team, which seems like it’s probably said to scare people away. I ask to be transferred to their legal team but get told that’s not possible.

[funky hold music]

His supervisor says that it would be inconsiderate (his words) if they provided an exception for me because it would be unfair for people who bought AppleCare (also his words). Guilt trip. He asks if I’m sure it’s the power adapter and when it started happening. He asks if I can bring it into one of their service providers so they can do a full diagnostic, which basically consists of plugging the charger into a computer and scanning the barcode the computer displays when the charger doesn’t work. Once it’s confirmed they’ll look into the possibility of giving me an exception, but he can’t promise me anything, because it would be unfair.

Scene change – Yoobee store

Apple makes them send in the broken charger before they will send out a new one, “That’s the rule they give us”. Apple won’t just take their word that the charger is broken. Having no charger is worse than having one that works intermittently. Yoobee checked if they had any ones they could loan me, but they didn’t. I didn’t ask why they couldn’t just give me one off the shelf, pick your battles and all, you know?

Unsurprisingly they say about broken chargers that “we do deal with these all the time.”

TO THE CAAAAARRRRR.

Scene change – the car park

I ring Apple from the car and get the same supervisor. We have a 36 minute conversation which basically consists of me complaining about the ridiculous policy (Apple says it’s Yoobee’s, Yoobee says it’s Apple’s. I side with Yoobee) of not being able to keep a semi-working charger while waiting for the new one and the rep trying to make me feel bad because he gave me an exception to the out of warranty policy for a charger that isn’t even properly broken (like giving away a charger is such a rare event, if the charger wasn’t so poorly designed I wouldn’t need a new one after 18 months, but battles). Apparently the free charger was because their product lasted 12 months so I didn’t need to get anything fixed during my warranty, and not because of known product flaws.

The conversation ends with me inside the store again having a speakerphone conversation with the rep and a Yoobee Apple tech.

I kept the charger. A new one is coming in on Wednesday for me. Also, Yoobee texts you with updates on your case. Technology.

<3 Yoobee. Not so much <3 for Apple.

Image credit: Marcin Wichary