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Processing Fees?

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Karen Kraft

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Joined
May 18, 2002
Posts
36,253
In the old days, when a company had to pay an employee to restock an item onto the shelves, having carefully inspected it to ensure that it is in re-salable condition, etc., or when a telephone operator had to talk to you on the telephone for ten to fifteen minutes to take your over-the-phone order, read it back to you, and then send written (hard copy) notations to get your order underway, reasonable processing fees were charged to help offset these legitimate costs.

ENTER AMERICAN AIRLINES

Deciding that I wanted to give an air tour as a gift to someone, I saw that my American Airlines A'Advantage account could benefit from an additional 1,000 miles and I had just received an email notifying me that there was a sale on such purchases. Now I can see why!

The cost of the mileage purchase was $27.50 for 1,000 miles. I made the purchase and entered in my payment information. Great!

Uh-oh. After the payment was received, I got a notice that I was charged $27.50 plus $2.06 Federal Excise Tax (seems reasonable enough) AND

... wait for it ...


... wait for it ...

A processing fee of $30.00 !!!!


Now, bandwidth is bandwidth. Memory is memory. Algorithms, programming, and so on are not without costs. That said, however, the idea of an after-the-fact "surprise" processing fee that is greater than the online "miles" being purchased seems a sure way to send people like me back over to United and Southwest.

What could this "processing fee" possibly be but an obvious "gotcha" gouge?

Are they jealous of the TV infomercials who make all their money on "Shipping and Handling Charges?"

Is there some rational reason for such a fee, other than the collection of underearned funds from unsuspecting [former] patrons? If so, please tell me what your thoughts are on this.


The Click-On charge = $27.50
Actual amount collected = $59.56
 
Last edited:
Karen Kraft said:
...
Is there some rational reason for such a fee, other than the collection of underearned funds from unsuspecting [former] patrons? If so, please tell me what your thoughts are on this.


The Click-On charge = $27.50
Actual amount collected = $59.56
Click to expand...

This is the price they charge. If you think it is too much money, find an alternative.
 
In Australia, websites are required by law to show total costs including taxes and processing fees on the page before you confirm payment.
No hidden costs.
It is surprising that when I'm the one doing all the work to get a ticket (which isn't a ticket any moreas most airlines are ticketless here) airlines still charge a massive processing fee. Seems a little unfair.
Although, if I call the airline direct to book a flight, they charge 25% over the web price simply because someone else is clicking the keys, and then they add the processing fee.
I guess it comes down to how you want to purchase.
 
bronzeage said:
This is the price they charge. If you think it is too much money, find an alternative.
Click to expand...

I have no problem with their charging whatever they wish.

It would have been nice, however, to inform us of the actual cost before processing the credit card charge. It's called "disclosure."
 
Sean Renaud said:
No it's called REGULATION. You're against it.
Click to expand...

No, under objective law, it's called theft by deceit and we are not anarchists, we believe in the law, and if it were not such a piddling sum, would sue for damages, but since it is a piddling sum, instead of going to Congress and demanding a regulation, we use the power of the information age to inform people to be aware of this company's business practice...




Ya'll should try it, for a change, some hope, a way out of the tunnel to serfdom.
 
miles said:
"Ahhhh...it's a profit deal."
Click to expand...

No problem with them wanting to make a profit on the service they are providing.

"If you wish to purchase additional miles, we will charge your credit card $30 plus $XX.00 for every 1,000 miles you purchase. In addition, there will be a 9.75% Federal Excise Tax charged on the mileage charges. Click to continue."

This b.s. is just one step up from "A LOVELY 4 X 5 PORTRAIT OF ABRAHAM LINCOLN"

http://us.123rf.com/400wm/400/400/f...ld-postage-stamp-from-usa-4-cent--lincoln.jpg

---- OR ----

TWO LIVE BABY RATTLERS !!!!

http://www.masks-wigs-and-costumes.com/Clown_Novelties/images/jumbo_baby_rattlers.jpg
 
Karen Kraft said:
I have no problem with their charging whatever they wish.

It would have been nice, however, to inform us of the actual cost before processing the credit card charge. It's called "disclosure."
Click to expand...

Read your user agreement. It's in there.
 
In there or not, its bullshit. When you give your credit card number you should know the exact amount being charged to it...not the amount you think it might be plus the other charges in an agreement...full cost right in your face
 
Karen Kraft said:
No, disclosure is not about regulation; it's about honesty.
Click to expand...

Sorry the reality is that FORCING someone to disclose information to you IS regulation. It's good and necessary regulation but regulation none the less. I love how for whatever reason if you agree with something it's not regulation.
 
Karen Kraft said:
No, disclosure is not about regulation; it's about honesty.
Click to expand...

Getting Corporate America to be honest has always and will always require regulation.

It explains why in cases of no regulation, you have lots of dishonesty. If you're looking for no regulation and complete honesty, try Enron or BP. Wait a minute...
 
stephen55 said:
Getting Corporate America to be honest has always and will always require regulation.

It explains why in cases of no regulation, you have lots of dishonesty. If you're looking for no regulation and complete honesty, try Enron or BP. Wait a minute...
Click to expand...

Xenophobia is no help. Jingoism negates most opinion.

Honest people are honest in their transaction, wherever they might be.
 
Karen Kraft said:
In the old days, when a company had to pay an employee to restock an item onto the shelves, having carefully inspected it to ensure that it is in re-salable condition, etc., or when a telephone operator had to talk to you on the telephone for ten to fifteen minutes to take your over-the-phone order, read it back to you, and then send written (hard copy) notations to get your order underway, reasonable processing fees were charged to help offset these legitimate costs.

ENTER AMERICAN AIRLINES

Deciding that I wanted to give an air tour as a gift to someone, I saw that my American Airlines A'Advantage account could benefit from an additional 1,000 miles and I had just received an email notifying me that there was a sale on such purchases. Now I can see why!

The cost of the mileage purchase was $27.50 for 1,000 miles. I made the purchase and entered in my payment information. Great!

Uh-oh. After the payment was received, I got a notice that I was charged $27.50 plus $2.06 Federal Excise Tax (seems reasonable enough) AND

... wait for it ...


... wait for it ...

A processing fee of $30.00 !!!!


Now, bandwidth is bandwidth. Memory is memory. Algorithms, programming, and so on are not without costs. That said, however, the idea of an after-the-fact "surprise" processing fee that is greater than the online "miles" being purchased seems a sure way to send people like me back over to United and Southwest.

What could this "processing fee" possibly be but an obvious "gotcha" gouge?

Are they jealous of the TV infomercials who make all their money on "Shipping and Handling Charges?"

Is there some rational reason for such a fee, other than the collection of underearned funds from unsuspecting [former] patrons? If so, please tell me what your thoughts are on this.


The Click-On charge = $27.50
Actual amount collected = $59.56
Click to expand...

I agree. Of course it was a gotcha gouge. And they are becoming more and more sophisticated in how they hide it...

I never trust ANY "deal". The consumer never wins. We buy because we must and decide just how much we are willing to take up the ass. There must have been disclosure though somewhere before clicked (as in check the fine print).

Sorry you got reamed...
 
Image said:
I agree. Of course it was a gotcha gouge. And they are becoming more and more sophisticated in how they hide it...

I never trust ANY "deal". The consumer never wins. We buy because we must and decide just how much we are willing to take up the ass. There must have been disclosure though somewhere before clicked (as in check the fine print).

Sorry you got reamed...
Click to expand...

I appreciate your comments in support.

Clearly, in my case, it's not about the money. It's about the closed nature of a system where you can't see ahead, down the road, but must commit at each sub-page along the way until the gotcha-moment. Sure, it's never too late. You can challenge the charge on the credit card, write a letter, etc. I don't mind paying the processing fee at all, in fact; I just expect to hear about it before the credit card gets charged.
 
Karen Kraft said:
I appreciate your comments in support.

Clearly, in my case, it's not about the money. It's about the closed nature of a system where you can't see ahead, down the road, but must commit at each sub-page along the way until the gotcha-moment. Sure, it's never too late. You can challenge the charge on the credit card, write a letter, etc. I don't mind paying the processing fee at all, in fact; I just expect to hear about it before the credit card gets charged.
Click to expand...

I have found myself seething at those moments and at each click determined it will be the last. I never reach the end. That can only be a trick on the internet...

The companies bank on the idea that no one is going to take the trouble to challenge it and just let it slide (hopefully as a lesson learned). And that's what usually happens...
 
Getting Corporate America to be honest has always and will always require regulation.

It explains why in cases of no regulation, you have lots of dishonesty. If you're looking for no regulation and complete honesty, try Enron or BP. Wait a minute...
Click to expand...
Karen Kraft said:
Xenophobia is no help. Jingoism negates most opinion.

Honest people are honest in their transaction, wherever they might be.
Click to expand...

Where is the xenophobia?

What is jingoism?

Yes, honest people are honest wherever they might be. Which explains their rarity in the ranks of corporate CEO's.
 
Karen Kraft said:
I have no problem with their charging whatever they wish.

It would have been nice, however, to inform us of the actual cost before processing the credit card charge. It's called "disclosure."
Click to expand...
Sounds like a job for a consumer protection agency of some sorts to make sure information like that is not as sneakily presented by them businesses. Eh?
 
Karen Kraft said:
In the old days, when a company had to pay an employee to restock an item onto the shelves, having carefully inspected it to ensure that it is in re-salable condition, etc., or when a telephone operator had to talk to you on the telephone for ten to fifteen minutes to take your over-the-phone order, read it back to you, and then send written (hard copy) notations to get your order underway, reasonable processing fees were charged to help offset these legitimate costs.

ENTER AMERICAN AIRLINES

Deciding that I wanted to give an air tour as a gift to someone, I saw that my American Airlines A'Advantage account could benefit from an additional 1,000 miles and I had just received an email notifying me that there was a sale on such purchases. Now I can see why!

The cost of the mileage purchase was $27.50 for 1,000 miles. I made the purchase and entered in my payment information. Great!

Uh-oh. After the payment was received, I got a notice that I was charged $27.50 plus $2.06 Federal Excise Tax (seems reasonable enough) AND

... wait for it ...


... wait for it ...

A processing fee of $30.00 !!!!


Now, bandwidth is bandwidth. Memory is memory. Algorithms, programming, and so on are not without costs. That said, however, the idea of an after-the-fact "surprise" processing fee that is greater than the online "miles" being purchased seems a sure way to send people like me back over to United and Southwest.

What could this "processing fee" possibly be but an obvious "gotcha" gouge?

Are they jealous of the TV infomercials who make all their money on "Shipping and Handling Charges?"

Is there some rational reason for such a fee, other than the collection of underearned funds from unsuspecting [former] patrons? If so, please tell me what your thoughts are on this.


The Click-On charge = $27.50
Actual amount collected = $59.56
Click to expand...
PROCESSING FEES?!
attachment.php
 
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