Magic Tours International to absorb credit card fees for travel agents

Magic Tours International has announced it will absorb credit card fees for travel agents booking through its Europe Holidays, World Holidays, and TravelRez brands starting October 1. This decision follows new payment regulations from the Reserve Bank of Australia, which will introduce no-surcharge rules for major card networks including Visa, Mastercard, and eftpos.

To protect agent margins, the company will implement a process where consultants send clients a secure payment link. Once the client pays, Magic Tours International will absorb the transaction fee, ensuring the consultant receives their full commission and any eligible markup of up to $500 per booking.

Managing Director Chip Popescu stated the initiative aims to ensure agents do not have to choose between regulatory compliance and profitability. The arrangement was developed following negotiations with the group’s bank, Westpac, to mitigate the impact of the surcharging ban on the travel trade.