Foreign Service Credit Card Charges

[rico567]

This is probably a familiar item to people posting to this forum (I was unable to post it to "Feature Articles," or I would have), but I thought I'd put it in as a heads-up, just in case.

 

When we booked our cruise, we used a credit card (MasterCard) for payment. When the statement arrived, we noticed that we had been billed around 3% as a "foreign service charge" on the entire amount of the cruise charge. When I called, the credit card company informed us that the charge was imposed because our tour operator (Viking River Cruises) is "primarily foreign based," meaning, I assume, that they were unable to get the 3% charge from them.

 

Despite some discussion, MasterCard was intransigent about refunding the amount of the foreign service charge, finally agreeing to half the amount. I declined this settlement, called Viking, and they cheerfully and promptly refunded the entire amount of the charge. I was very pleased, since this is not stated anywhere as a policy of Viking.

 

Naturally, this may be a "YMMV" situation....we won't count on getting any such refund in the future, and will use an e-check to pay. The catch-22, of course, is that an e-check doesn't provide the same insurance that a credit card does, which means we'll have to be sure that default on the part of the tour provider is covered on our trip insurance.

[pacmom]

Before you use an e-check, check the Capital One card. We use it exclusively when travelling abroad. They don't have the FTF. We have also travelled with Viking and paid with a credit card and never incurred the dreaded FTF. We had this happen with Oceania and now that line will give you onboard credit for the amount of the FTF. Pat

[globalwife]

Yep, I live abroad and my capital one card is the one I use since they don´t add that charge to tranactions made overseas.

[janetcbl]

American Express has never applied a surcharge on our Viking trips booked in the US. If we use the card to pay for charges ON THE SHIP, then a 2.7% is applied.

[rico567]

Good to know that Capital One doesn't. When I talked to Viking about it, they said that Master Card is the only one that does it. I'm not upset about credit card charges (there are a minority of places around here that charge 3% less for cash), as long as it's clearly labeled up front. That extra 3% is just built in to prices almost everywhere, so that people who pay cash are subsidizing us folks who prefer the convenience (and rebates- I use a Chase Rewards card, so I get cash back) of a credit card. They shouldn't necessarily have to do that, and if a vendor wants to charge a differential to use a card, I'm fine with that- just tell me beforehand, so I know my options.

[Mickie]

This is probably a familiar item to people posting to this forum (I was unable to post it to "Feature Articles," or I would have), but I thought I'd put it in as a heads-up, just in case.

 

When we booked our cruise, we used a credit card (MasterCard) for payment. When the statement arrived, we noticed that we had been billed around 3% as a "foreign service charge" on the entire amount of the cruise charge. When I called, the credit card company informed us that the charge was imposed because our tour operator (Viking River Cruises) is "primarily foreign based," meaning, I assume, that they were unable to get the 3% charge from them.

 

Despite some discussion, MasterCard was intransigent about refunding the amount of the foreign service charge, finally agreeing to half the amount. I declined this settlement, called Viking, and they cheerfully and promptly refunded the entire amount of the charge. I was very pleased, since this is not stated anywhere as a policy of Viking.

 

Naturally, this may be a "YMMV" situation....we won't count on getting any such refund in the future, and will use an e-check to pay. The catch-22, of course, is that an e-check doesn't provide the same insurance that a credit card does, which means we'll have to be sure that default on the part of the tour provider is covered on our trip insurance.

 

I'd be a little hesitant to use the e-check, for exactly the reason you mention-lack of "insurance" that a credit card charge offers. We just opened a Capital One account to avoid these fees; Got a FTF charge for the deposit we made last month to Viking.

[parkie]

We got hit with this on a Viking cruise this summer (this one was the first time in 5 Viking cruises) My wife also protested this to MasterCard and was also refused, but Viking refunded it as well. We had been using our Capital One card for several years in order to avoid any FTF gouging by MasterCard.

 

When my wife questioned the charge by pointing out that our payment was made to California, they said it didn't matter and were adamant about keeping the charge on the card.

 

This situation is good PR for Viking; wonder if MC makes enough profit to warrant the bad feeling by American-based consumers. (I suppose so).

[rico567]

<snip>

This situation is good PR for Viking; wonder if MC makes enough profit to warrant the bad feeling by American-based consumers. (I suppose so).

 

I don't know how much MasterCard makes, and I don't know whether the explanation they offered (see note below for their explanation) is true or not, but, as I said in an earlier post, I was not informed of the foreign service charge at all, and don't accept that "- it's in the fine print somewhere." I cut up the MC cards, and switched to a VISA that offers the same rewards. I'll certainly keep the Capital One in mind, and if we use a credit card next time, I'll make sure there'll be no charge. If I can't avoid it, I'll pay by e-check and make sure that our insurance covers any default by the cruise provider.

 

Note: The explanation MC offered me for the foreign service (FTF?) charge was that they had always had the charge (which we certainly didn't pay when we charged with Viking in 2003.....but I have no idea what card we used then), but that MC and all the others levy the same charge when their cards are used outside the U.S. I wasn't told, but I can only assume it's because they can't collect their 3% fee over there. They told me most people never notice the fees, because back in the day they could just incorporate it into each foreign charge, so the individual amount was usually pretty small. Then someone passed a new regulation (go figure!!) which states that the total of all foreign charge fees must be listed as a separate item on each monthly statement. I have no idea whether all this is true or not, I'm just reporting what I was told.

[franski]

Hi -

 

Have used Visa extensively in Europe - and can't remember ever being charged.

 

Don't recall a surcharge on our cruise last year (Uniworld) when we used our Visa to settle our account - and I am sure that I would have questioned it if it did surface.

[Mel]

When you use a Canadian MC or VISA outside of Canada, they add on 2-1/2% fee onto the bank exchange rate, but it is just included in the final amount so most people don't even know it's there......

[Old Pete]

Called Viking after reading this post and was told what to do in order for them to refund the FTF (apparently they have absolutely no issue with it)

 

Like it or not - thats good to know

[Old Pete]

Well... an "interesting development" today :rolleyes:

 

Got a call from Viking person who wanted to know WHY I submitted the Foreign Fees to them when it is OBVIOUS that the charges were made in a foreign country buying stuff on something called Mikhail Lomonosov :eek:

 

I explained (stifling my laughs) that its THEIR SHIP (a.k.a. Viking Lomonosov) and it OBVIOUSLY operates in foreign country and that, after reading these posts I called Viking and spoke to the representative who told me what to do (without so-much-as-to-blink-an-eye) in order to get the fees reimbursed.

 

The person was still unconvinced and "counter-attacked" by "well... you made these purchases on board of a ship and didn't pay charges through the US procesing office"

- Uh... DUH!!! of COURSE I made them on board YOUR ship (I mean I am not submitting charges made on-land, am I?) and how is it that I can pay these charges through US Office when I am to settle my bill upon the disembarkation and the ship operates in UKRAINE? :confused:

I guess if the ship was in US - we wouldn't have foreign fees charges, would we?

 

Darn - she was ADAMANT that she has no idea why I was advised by "the other representative" that the fees will be refunded because they would be NOT! I was "misinformed", you see...

 

I then inquired if she would be willing to lose a possible repeat customer and also risk the "not so good review of the situation" via word-of-the-mouth over a measly amount of said fees... at which point she backpedalled rather fast and said that she is cutting me a check.

 

Thought I just share this with fellow cruisers with a little suggestion to make sure that if you're ever in the situation of Viking promissing to reimburse your foreign transaction fees - either get it via e-mail or ask the representative on the phone for their name (just to have some "documentation" to go back on)

 

Will be interesting to see how long before this check arrives....

 

GOTTA LOVE IT!!!! :mad::D

[LHT28]

 

- Uh... DUH!!! of COURSE I made them on board YOUR ship (I mean I am not submitting charges made on-land, am I?) and how is it that I can pay these charges through US Office when I am to settle my bill upon the disembarkation and the ship operates in UKRAINE? :confused:

I guess if the ship was in US - we wouldn't have foreign fees charges, would we?

 

Just curious

What currency do they use on the ship for your account USD or Euro?

I thought when I read about Viking it was Euro when cruising in Europe :confused:

 

It is your credit card that imposes the fee

Many other threads on the topic

[Old Pete]

LHT - Since the ship orerated in Ukraine - the currency was Ukrainian Hrivnas.

 

The concensus between the travelers though seems to be that since Viking operates "internationally" purchases made on-board a given ship should NOT be subjected to FTFs, regardless whether its Euros, Hrivnas, Rubles or whatever other currency it may be

 

Yes, I was using MasterCard and they do impose 4% FTF

In addition, the exchange rate itself sucks - even without the said FTF it amounted to about 7.65 UAH = $1.00 whereupon anywhere from Odessa to Kiev I could've exchanged at 7.91 UAH = $1.00. I know its pennies (or even .00x pennies) but none-the-less we all hate to pay more when we simply shouldn't....

[LHT28]

LHT - Since the ship orerated in Ukraine - the currency was Ukrainian Hrivnas.

 

The concensus between the travelers though seems to be that since Viking operates "internationally" purchases made on-board a given ship should NOT be subjected to FTFs, regardless whether its Euros, Hrivnas, Rubles or whatever other currency it may be

 

Ok thanks

I was confused by your post

I thought just your CC charged the FTF and not Viking which made sense as it was foreign currency charge to your credit card

I did not know Viking also charge a FTF ...good to know

[Old Pete]

LHT - I think you're getting "more confused" although I am unquestionably contributing. :eek:

 

Viking DID NOT charge FTFs - my CC did.

 

That said - as mentioned, most of the cruisers seem to be in agreement that since Viking operates a US-based office and charges one in US$$$ for the trip, etc - the purchases made on-board ANY of the Viking's ships should NOT be done in local currency (be it euros, florints, hrivnas or anything else) thus avoiding the FTFs imposed on one by his\her CC.

 

its just that Viking supposedly is (was?) OK reimbursing the FTFs since the CC will not take them off.... that is until I went through my experience...

 

we'll se if I ever get that check.... :rolleyes:

 

Are we clear on any further misunderstandings? ;)

[LHT28]

That said - as mentioned, most of the cruisers seem to be in agreement that since Viking operates a US-based office and charges one in US$$$ for the trip, etc - the purchases made on-board ANY of the Viking's ships should NOT be done in local currency (be it euros, florints, hrivnas or anything else) thus avoiding the FTFs imposed on one by his\her CC.

 

 

I think I have it

 

The Viking website clearly states they charge on board purchases in Euros while cruising in Europe so I understand your confusion being charged in another currency

In Europe:

The onboard currency is the euro. All onboard purchases are billed with a guest check and added to your personal shipboard account. At the end of your trip, you may pay in cash (U.S. dollars or euros), or by credit card (your bill will be converted at the current exchange rate). Unfortunately, travelers checks cannot be used for payment of your shipboard account. Please review your shipboard bill upon checkout so that we can more easily assist with any questions you may have.

http://www.vikingrivercruises.com/about-your-trip/ontheship.aspx

(but who reads the fine print) ;)

 

then your CC charged you the FTF because it was foreign currency charged to your card

You got lucky by having Viking refund the fee

 

Take care

 

Lyn

[Old Pete]

The onboard currency is the euro. ... At the end of your trip, you may pay in cash (U.S. dollars or euros)...

AHHH! Well, this is interesting to say the least. The onboard currency is euro! But I can settle the bill in cash using US dollars. WHO is doing this conversion, may I ask? Is it safe to presume that whoever-it-is that is taking your payment? Purser, treasurer, accountant...whatever???

I mean we can easily imagine the transaction:

 

- Good Morning, what is your cabin number?

- Good morning, its 229

- OK, here we are. Your bill is 250 euros. How would you like to pay?

- I'll be paying cash and would like to pay in US dollars

- No problem. Let me do a fast conversion calculation... that will be $315.00, please

 

So... what prevents this person to run a $315.00 credit card charge as oppose to 250 Euros therefore saving all the possibility of any FTFs and obvious customer frustration???

[LHT28]

So... what prevents this person to run a $315.00 credit card charge as oppose to 250 Euros therefore saving all the possibility of any FTFs and obvious customer frustration???

 

Or just pay cash and save all the hassle:D

[Old Pete]

Happy to report that got the check from Viking today :D