Magic Tours International will absorb credit card fees on all travel advisor bookings from 1 October 2026 \u2013 the day the Reserve Bank of Australia\u2019s ban on card surcharging takes effect \u2013 across its Europe Holidays, World Holidays and TravelRez brands.<\/strong><\/p>\n The move is designed to protect consultant margins once surcharging can no longer be passed on to customers, a change the trade has been bracing for since the RBA confirmed the ban earlier this year.<\/p>\n Under the arrangement, consultants booking through the group\u2019s offices, websites or TravelRez FIT platform will send clients a secure payment link. The client pays by credit card, Magic Tours International absorbs the card fee, and the consultant\u2019s full commission and markup \u2013 up to $500 per booking \u2013 is paid directly to the agency\u2019s nominated bank account.<\/p>\n \u201cAustralian agents shouldn\u2019t have to choose between staying compliant and staying profitable,\u201d said Magic Tours International managing director Chip Popescu. \u201cFrom 1 October, the rules change \u2013 and rather than leave our partners to absorb the hit, we\u2019re absorbing it for them. Book with us the way you always have, quote your client the full price including your markup, and keep every dollar of it. We\u2019ll take care of the card fee.<\/p>\n \u201cThis is about backing the agents who back us,\u201d Popescu added. \u201cThe trade has been asking how they\u2019ll manage these costs, and we wanted to give them a clear, simple answer. Nothing changes on their end \u2013 we\u2019ve done the work so they can keep selling with confidence.\u201d<\/p>\n Popescu told Travel Weekly<\/em> the initiative grew out of negotiations with the group\u2019s longtime bank, Westpac.<\/p>\n \u201cWe negotiated with our bank, and we said, \u2018Look, what is the best we could do, given the situation and our industry and how it operates?\u2019,\u201d he said. \u201cThey have assisted us. They\u2019ve come to the party and they said, \u2018look, we\u2019ll do this for you\u2019. Obviously, we need to reach certain targets, but we\u2019re very confident that we can. And they said we will help you out.\u201d<\/p>\n \u201cWe\u2019ve been around for about 35 years, so we\u2019ve built a long-standing relationship with Westpac \u2013 always been with them,\u201d Popescu said. \u201cI think that contributed to the fact that we managed to get them on board. It\u2019s not a major thing \u2013 obviously they have a very small margin as well in this situation \u2013 but they have been able to assist us.\u201d<\/p>\n Popescu said the Surfers Paradise-based group had modelled the cost before committing to it.<\/p>\n \u201cWe\u2019ve worked it out based on the last three months and we have found that indeed it is a cost to the business,\u201d he said. \u201cBut it is a cost that we as a supplier can absorb by negotiating better deals with our suppliers overseas, and also being able to reduce other costs within our operations.<\/p>\n \u201cOur physical brochure has been discontinued \u2013 we have an electronic brochure that cuts down on brochure and distribution costs. So we looked at all the operational costs that we had and we said, to allow this to happen and assist our travel partners, what other costs are we able to reduce that will basically at least mitigate for our new cost? And we\u2019ve been able to do that.<\/p>\n \u201cWe\u2019ve been able over time to reduce certain parts of the business by using AI, using other systems, technologies and efficiency assistance platforms, that have allowed us to not only increase our efficiency, but also cut costs along the way.\u201d<\/p>\n Consultants will also be reimbursed for any booking or processing fees they attach to a sale, in addition to their commission and markup.<\/p>\n \u201cBecause we know that sometimes consultants also have other fees or costs that they attach to a booking, we will basically allow them to use the full amount that relates to our booking, including any booking fees, processing fees, or whatever other fees they might have for that particular booking, and we will then refund that together with the commission,\u201d Popescu said.<\/p>\n \u201cObviously, we kept that to a $500 maximum, because that could go on and on if they add on to the booking. But if it\u2019s just a booking fee, processing fee, or whatever they normally charge in the process of a booking, we\u2019re happy to cover that and return it together with the commission.\u201d<\/p>\n Popescu said the model also removes complexity for consultants at the point of sale.<\/p>\n \u201cA lot of [agents] don\u2019t really know how to word this properly, or how to handle the actual legal side, so they don\u2019t get into any strife with the Reserve Bank,\u201d he said. \u201cWe\u2019re trying to take all those complexities away. Make sure that they don\u2019t even have to discuss this with a client. They have the full amount, margins, whatever they need to put on. It makes it more streamlined.<\/p>\n \u201cThere\u2019s one price to pay, and that includes all the fees, all the commissions, everything that\u2019s included. It stays with one single operator, which might make it easier for the agent as well because we do cover so many different products, from flights to transfers to individual hotels to tours, cruises and other products. So it can stay in one booking with one payment \u2013 the client pays through the Westpac link and off they go.\u201d<\/p>\n Popescu was clear the arrangement is not a workaround of the surcharge ban.<\/p>\n \u201cWe\u2019ve checked this with our legal representative just to make sure that in terms of the warning and what we do, it is within the guidelines of the RBA,\u201d he said. \u201cThey\u2019ve checked it, they\u2019ve come back and said, absolutely, there\u2019s nothing there that could be used in terms of credit card surcharges or any disclosure that needs to be made \u2013 because in fact, it isn\u2019t a credit card surcharge. We don\u2019t have that surcharge. We\u2019re charging the exact amount that is being quoted, plus any booking fees, which are not credit card fees anyway. So there\u2019s nothing there to be worried about.\u201d<\/p>\n Asked why Magic Tours International was prepared to wear the cost, Popescu pointed to the group\u2019s dependence on agents.<\/p>\n \u201cIt might be an existential situation where, if they continue cutting into their margins and profits, it might be a time where they might have to give up altogether, which for us would mean a disaster, being a wholesaler,\u201d he said. \u201cWe really rely on the travel agents continuing what they\u2019re doing best, and if they don\u2019t exist, we don\u2019t exist.\u201d<\/p>\n The offer launched today, with an EDM going out to agents, and Popescu said the group had already been sounding out its most loyal partners on how the changes would affect them.<\/p>\n \u201cWe have been discussing with our most loyal agents, and they were basically not really understanding how the system will work for them in the future \u2013 not how we absorb this, but how they will be able to deal with the credit card situation going forward,\u201d he said. \u201cI think this takes another level of complexity for a small business. It\u2019s not only that, but it\u2019s a legal issue as well.\u201d<\/p>\n Popescu said he expects other operators to follow with their own solutions.<\/p>\n \u201cIt all depends \u2013 it comes down to the full picture of the operations,\u201d he said. \u201cI think in the long run, this could be an opportunity for consultants to keep on doing what they\u2019re doing without having to worry too much about the new legislation. It might be only one solution \u2013 obviously, there\u2019s going to be several others. But I think from our point of view as a wholesaler, that is probably the solution we can come up with and assist the consultants with.\u201d<\/p>\n The offer applies to flights, accommodation, tours, cruises and packages across Europe Holidays, World Holidays and TravelRez.<\/p>\n![\"Magic](\"https:\/\/travelweekly.com.au\/wp-content\/uploads\/2026\/09\/Magic-Tours-International-s-Europe-Holidays-World-Holidays-and-TravelRez-brands-1024x683.png\"\/)
![\"Magic](\"https:\/\/travelweekly.com.au\/wp-content\/uploads\/2026\/09\/Magic-Tours-International-s-Europe-Holidays-World-Holidays-and-TravelRez-brands-1024x683.png\")
How the deal came together<\/strong><\/h2>\n
$500 cap<\/strong><\/h2>\n
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