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Proposed User Pays Credit Card Purchase Fee Structure and Annual Purchase Fee Revenue (a) A Fixed Cost Purchase Fee of 10 cents per Credit Card Purchase; and (b) Variable Cost Purchase Fee of half of 1% of each dollar of each Purchase. No Annual Fee or Lost Card Fee. The Proposed User Pays Fee calculation is a veritable Pimple on the backside of an elephant for Credit Cardholders enjoying the Three Purchase Benefits Of 'Tap And Go' in particular A Line/s of Credit because Purchasers do not pay for those ‘goods and services’ for between 45 and 55 days later. A $30 Purchase would incur a 25 cents User Pays Fee. A $50 Purchase would incur a 35 cents User Pays Fee. A $100 Purchase would incur a 60 cents User Pays Fee. A $200 Purchase would incur a $1.10 User Pays Fee. The aggregate monthly User Pays Purchase Fee would be calculated and tabulated on the Monthly Credit Card Statement. Average Credit Card Purchase is $108.83 Number of Credit/Charge Card Purchase transactions annually- Oct 21 - Sept '22 was 3,295,731,984 Estimated average Purchase amount of 'smallest one third' of Purchases is $25 (golf green fees, cafe meal, Bunnings hardware, chemist script, carton of beer) Estimated average Purchase amount of 'middle one third' of Purchases is $85 (weekly family groceries, filling up the petrol tank) Estimated average Purchase amount of 'largest one third' of Purchases is $165 (Seeking Reward Points - buying airline ticket, new fridge, TV etc, council rates etc, doctor or dentist bill, car insurance/Green Slip/registration)
Calculations in the below table are listed in worksheet
CreditCardsSummayData' in Excel file
CreditCardsSummayData.xlsx
Credit Cardholders with only Level 1 and Level 2 Financial Literacy Capacity have for too long carried the burden of paying for the provision of Credit Card Products in Australia. They can now get a Fair Go - as proclaimed by five former Prime Ministers in THE CONVERSATION article "In Australia, land of the ‘fair go’, not everyone gets an equal slice of the pie". |
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