(Revised 20th November 2019)
In light of Booking.com’s recent advice to Fiji tourism operators that they would remove the credit card fees set up in their systems effective 21st November 2019, FHTA advises all members that the recommendation below, initially sent Feb 2014, remains in place.
The charging of the Administration Fee on Credit Cards is recommended to continue as current on all invoices settled with Credit Cards with the provision of a Credit Card Disclosure.
20 February 2014
You will recall that on 25 Nov. 2013 a “Credit Card Fee Policy Recommendation” was made to Members. A confirmation was received from Banks that “International Debit Cards” attract up to 3% Processing Fees, therefore the Board of Directors has approved the following amended Policy Recommendations: –
It is noted that the Reserve Bank of Fiji (RBF) on 05 November 2013 has rescinded its “Credit Card NO Surcharge Rule” – effectively immediately. The RBF has not stipulated any system for Credit Card Surcharges. However, the RBF will closely monitor any credit card surcharging practices applied by merchants and commercial banks have been requested to liaise with their clients to ensure such surcharges are appropriately displayed.
We leave it for individual members to decide if they wish to apply an Administration Fee for the use of Credit Cards. The Board is of the opinion that a generic administration fee based on cost recovery is an appropriate charge provided that there is no element of “profiteering” on an annualized basis. It is recommended that members set their Administration Fee on an average of actual fees charged by the various card companies and weighted by volume plus an element that would cover the tax components (HTT and STT), leasing, rental and ancillary costs. It is envisaged that the maximum fee would be 3.5%. (Note: A Generic Administration Fee means that the same fee is applicable to ALL Credit Cards. There should NOT be any differentiation between different cards.)
The Authorities have indicated that profiteering or gouging will NOT be tolerated and that the surcharge process may be audited. Members therefore should be able to explain how their fee was set and what the total fee excess or shortfall was over a 12-month period.
Debit Cards. “NO Administration Fee is chargeable for the use of Local Debit Cards”. A generic administration fee of maximum 3.5% for all INTERNATIONAL Debit Cards is chargeable.
It is a RBF requirement that any Administration Fee is prominently displayed for guest information at
appropriate touch points. Suggested wording… “At this Establishment there is an Administrative Fee of XX% on the use of any Credit Cards or International Debit Cards. There is no fee for the use of any Local Debit Card.”
This Administration Fee Policy Recommendation replaces the previous issued on 20 February 2014. It is the commercial prerogative of individual members to follow or disregard this Recommendation.
Please contact the Secretariat should you have any queries.
Chief Executive Officer