"Overseas transaction" charge??

[gr'aunt]

Hi all...just wondering if anyone else has had this unusual experience. We put a credit card deposit down for our 3rd O cruise, to take place in summer 2011. When the bill arrived, we were charged a $40 "overseas transaction" fee. Since this was never an issue before, I immediately called our TA to ask "what's up with the $40 charge?". She said she'd call O to discuss and get back to me ASAP. It seems it is a VERY RARE occurance, and only occurs with certain cards some of the time, but...the charge went through Ireland (where O does their banking?), and my credit card company charged me for a foreign transaction. Our TA said she'd heard about this some time back, but had never actually experienced any of her clients having this happen to them. (In retrospect, I should have run out and bought a lottery ticket that day). Anyway, O said they'd reimburse us, which they did. So watch that credit card statement carefully!!!

[Druke I]

We had that "foreign transaction fee" added to our latest deposit, last month. At my request, our Travel Agent called Oceania, and they said they would refund it - check to "be cut" next week.

 

We've used the same card (CitiBank) 3 times before with Oceania without the fee being charged, but a lot of changes this year with credit cards.

 

There have been several thread on this forum about the fee.

 

I'm suprised that Oceania has not changed banks to an "onshore bank" - if they continue to refund the 3%, it could add up to a lot of money over a period of time.

[Friscorays]

Here are the first five of more than two dozen threads on the topic:

 

http://boards.cruisecritic.com/showthread.php?t=1172425&highlight=foreign+transaction

 

http://boards.cruisecritic.com/showthread.php?t=1129480&highlight=foreign+transaction

 

http://boards.cruisecritic.com/showthread.php?t=1085190&highlight=foreign+transaction[url=http://boards.cruisecritic.com/showthread.php?t=1129480&highlight=foreign+transaction][/url]

 

http://boards.cruisecritic.com/showthread.php?t=1071939&highlight=foreign+transaction

 

http://boards.cruisecritic.com/showthread.php?t=974764&highlight=foreign+transaction

[gr'aunt]

We had that "foreign transaction fee" added to our latest deposit, last month. At my request, our Travel Agent called Oceania, and they said they would refund it - check to "be cut" next week.

 

We've used the same card (CitiBank) 3 times before with Oceania without the fee being charged, but a lot of changes this year with credit cards.

 

There have been several thread on this forum about the fee.

 

I'm suprised that Oceania has not changed banks to an "onshore bank" - if they continue to refund the 3%, it could add up to a lot of money over a period of time.

 

We just sailed last May with O and had no "transaction fees" added to any credit card purchases before or during the cruise. We also used a Citi Bank card last year and this year to rack up the airmiles, but since we had no problems last May, this fee was a total surprise to us. We always take along a Capitol One card for purchases outside of the US, but booking a cruise from a company headquarted in Miami didn't strike us as an "international purchase". Oceania was gracious enough to take care of the "problem" (the check arrived today). Oceania would most likely blame the Credit Card company for the fee, and the Credit Card company would most likely blame Oceania for banking in Ireland. Sounds like a no-win situation all around.

[gr'aunt]

Here are the first five of more than two dozen threads on the topic:

 

http://boards.cruisecritic.com/showthread.php?t=1172425&highlight=foreign+transaction

 

http://boards.cruisecritic.com/showthread.php?t=1129480&highlight=foreign+transaction

 

http://boards.cruisecritic.com/showthread.php?t=1085190&highlight=foreign+transaction

 

http://boards.cruisecritic.com/showthread.php?t=1071939&highlight=foreign+transaction

 

http://boards.cruisecritic.com/showthread.php?t=974764&highlight=foreign+transaction

 

Well, I guess this problem isn't as "rare" as my TA was lead to believe. It obviously isn't much of a revenue drain, or a change of banks would have already happened. I can't help but wonder if the "foreign transaction fee" isn't already built into the price of the cruise!!!

[capecodder2]

If you read even a few of the listed previous emails, you will understand that this fee has nothing to do with O and only to do with the credit card you choose to use. Where they bank is their choice. They have no idea what your credit card company is going to charge for fees. They do not have to refund your fee, but they do it to keep passengers good will.

[Benita]

Oceania has been good about refunding the fee, which costs them money. Since it is an American company, based in Miami, the normal assumption for a passenger would be that there would be no foreign fees applied to the charge. Those of us who read cruise critic are in the know, but amazingly enough, most people do not even know of this site. I really think it would be a good idea for Oceania to let the travel agents know, as well as post on their web site about the charges, so passengers can use the appropriate credit card to avoid the costs. It really is an unpleasant surprise and out of the realm of the normal "let the buyer beware". By the way, I used to use the Citibank card because they had no foreign bank fees, but they changed the rules this year. Capital One and certain cards associated with brokerage houses are the only ones I can find that still do not have this fee. Anybody hear of any others?

[hondorner]

I've posted this several times, so those with long memories, please forgive me.

 

Most American Express cards do not assess the fee. It is a fee assessed by Visa (1%), and jumped on by numerous banks because it sounded like a good idea to them (usually adding 2%, up to 4%, more).

 

Some banks absorb the 1% Visa charge, and thus charge nothing. The one that I'm certain charges no fee is the Gold Visa offered by Schwab Bank (owned by the Charles Schwab brokerage company). They also issue a debit card on their checking accounts that does not asses any fee, and refunds any ATM fees charge by outside banks, even internationally. By the way. the Gold Visa does not issue miles, but pays back 2% of purchases in cash, which might be a better deal.

[MarilynA]

I just went through the exercise a couple weeks ago of researching these fees for all the various cards, and the only card you can count on today to have no foreign transaction fee is the Capital One card (plus the Schwab card that Don mentioned). If there are any AmEx cards today with no foreign transaction fees, it may possibly be ones with high annual fees. I was only interested in researching cards with zero or low annual fees. (Beware, some of the internet sites that post comparison rates are a couple years old and outdated.)

 

I don't like that I'm going to have to go back through my VISA account to see if I was charge a foreign transaction fee for my two Oceania deposits. Will they appear right below the transaction for the deposit itself or separately where a late fee or similar might appear, or maybe even the following month? Oh well, live and learn. Thank goodness we have Cruise Critic!

 

Marilyn

[hondorner]

...If there are any AmEx cards today with no foreign transaction fees, it may possibly be ones with high annual fees....

Even though I'm aware of the Schwab Gold Visa (because I have a Schwab debit card), I don't have one, primarily because I have never been assessed a foreign transaction fee on my American Express. It's not a "normal" AmEx (without credit limit, pay everything every month,usually has an annual fee), it's a revolving credit AmEx issued by Bank of America. I pay it off every month and my limit is high enough to essentially be no limit, it has no annual fee, it builds miles, and there are no extraneous fees.

 

I refuse to pay annual fees, cash advance fees, ATM fees, foreign transaction fees, currency exchange fees, etc. as a matter principle, even if there are potential associated benefits.

[LuAnn]

Even though I'm aware of the Schwab Gold Visa (because I have a Schwab debit card), I don't have one, primarily because I have never been assessed a foreign transaction fee on my American Express. It's not a "normal" AmEx (without credit limit, pay everything every month,usually has an annual fee), it's a revolving credit AmEx issued by Bank of America. I pay it off every month and my limit is high enough to essentially be no limit, it has no annual fee, it builds miles, and there are no extraneous fees.

 

I refuse to pay annual fees, cash advance fees, ATM fees, foreign transaction fees, currency exchange fees, etc. as a matter principle, even if there are potential associated benefits.

 

so glad that you are feeling well...and back in the saddle as a light on CC...with such valuable info!!! We will still sail together...I know it!!

 

Question...re the AMX card ...is that something you gain access with through B of A...or one of the multi colored cards...re green, gold, black, silver etc??? :D that you receive offers from through the mail?? Or do you have to have a savings/checking account with B of A?? to gain access?

 

I have had the "standard" card in the past with AMX (green and gold) and have had offers of all the "other colors"...but since I value your information...and have learned so much from you...wondering if you could provide some more details about your card from AMX? LuAnn

[MarilynA]

Don, be careful and double check the terms on your card before your next trip. I believe you'll find that you'll be charged a 1% foreign transaction fee (which is admittedly much lower that most cards). Terms for that particular card are posted at the Bank of America site: https://www.bankofamerica.com/credit-cards/marketingdetail.action?context_id=marketing_detail&offer_id=ECOMM0908ATY00300100145160EN000|2030324|V9.

 

Marilyn

[hondorner]

Don, be careful and double check the terms on your card before your next trip. I believe you'll find that you'll be charged a 1% foreign transaction fee (which is admittedly much lower that most cards). Terms for that particular card are posted at the Bank of America site: https://www.bankofamerica.com/credit-cards/marketingdetail.action?context_id=marketing_detail&offer_id=ECOMM0908ATY00300100145160EN000|2030324|V9.

 

Marilyn

Our last deposit was on Regent (which uses the same Irish bank) on May 3, 2010, and we were not charged any fee.

 

I believe the fee to which you are referring comes under this description:

American Express (1) converts charges made in foreign currencies to U.S. dollars using a rate selected on the business day prior to the day on which the charges are processed by American Express and (2) applies a 1% commission to the converted amount. See the Credit Card Agreement for details.

<Added emphasis>

 

Note that this fee applies to conversion of funds to charges made in foreigh currencies. The fare Oceania charges is never converted to a foreign currency; it remains in US dollars. The Foreign Transaction Fee to which this thread refers is NOT a currency conversion fee, it is an entirely bogus (phony) charge originally CREATED OUT OF THIN AIR by Visa and is IN ADDITION to any fees that might be associated with a currency exchange. It is not a commission, it is not due to any expenses attributed to the transaction, it is simply a way for the credit card company to take a layer of skin off their customers.

 

It is charge by visa to the banks that issue their cards. Some banks pass on the fee. Some absorb the fee and do not charge their customers anything. But, most banks thought it was a darned good, sneaky way to rob their customers, and added their own fee of 2% to 4%, making a total of 3% to 5%.

 

To the best of my knowledge, American Express, whether directly or by license, has never initiated this fee.

 

Neither Oceania or the Irish bank ever sees a penny of this fee. Nor, is it up to them to monitor which cards charge the fee and warn every customer. Oceania undoubtedly receives other incentives from the bank in Ireland that makes good economic sense for them to have a relationship; after all, while their headquarters is in Miami, they pay bills, fees and payrolls all over the world.

 

Even though Oceania does not receive one penny of this fee, they have seen fit to refund the amount to anyone who brings it to their attention. They either issue a shipboard credit, or, if you insist, they will cut a check. This situation IS described on their web site, and anyone who bothers to read the terms and conditions will have adequate warning.

[Benita]

Don, I wasn't asking them to monitor which credit card charges the fee. What I wanted was a warning that they use a foreign bank, so the customer may be subject to foreign bank fees. If it is on their web site, then they have done what I asked before I asked it.

[MarilynA]

Thanks for clarifying that, Don. I totally missed that the 1% was the conversion fee.

 

Marilyn

[PaulMCO]

My bank (Chase) regularly charges this fee. However it depends on whether Oceania uses their Ireland bank for the transaction -- as they DO NOT always use this bank.

My last Oceania transaction did not cause a surcharge (was surprised). -

[gr'aunt]

My bank (Chase) regularly charges this fee. However it depends on whether Oceania uses their Ireland bank for the transaction -- as they DO NOT always use this bank.

My last Oceania transaction did not cause a surcharge (was surprised). -

 

My refund check from O is drawn on "BANK OF AMERICA"! And no, I never thought I would need to read the fine print on O's website or in their brochure to determine what country the bank is located that processes their credit card charges. (I mean really, who would?) Since I live in the US, used a US-based travel agency, and used a US bank-based credit card on a cruise operated by a company whose headquarters are in the US, it never occurred to me that my credit card company would recognize my deposit as a "foreign transaction". In the grand scope of things, this is a minor blip. I had to make a few phone calls that I otherwise would not have had to make, and I waited a few weeks for a $45 check. A minor annoyance. But annoying, nevertheless.

[mommom5174]

we always get a transaction fee (3%0 when we charge a trip on oceania. ask your travel agent to have them reimbuse it to you. they will. also i fyou use a CapitalOne credit card they don't charge a foreign transaction fee. we use this card whenever we travel abroad.r

[Rocket4Oh]

My bank (Chase) regularly charges this fee. However it depends on whether Oceania uses their Ireland bank for the transaction -- as they DO NOT always use this bank.

My last Oceania transaction did not cause a surcharge (was surprised). -

This is our first cruise with O so no real expertise here but for the initial deposit and the final payment I did not see a surcharge on our CC. We use the USAir Master Card (Barclay Bank). Maybe we were fortunate that on both charges O used a different bank other than their Irish one.

[JimandStan]

This is our first cruise with O so no real expertise here but for the initial deposit and the final payment I did not see a surcharge on our CC. We use the USAir Master Card (Barclay Bank). Maybe we were fortunate that on both charges O used a different bank other than their Irish one.

 

 

Or, perhaps it is the policy of your Credit Card not to charge such a fee. Not every card does.

[LHT28]

we always get a transaction fee (3%0 when we charge a trip on oceania.

If you know you are charged the FTF for your Oceania payments why not just use the Capitol One card for the cruise payments :confused::confused:

Save the hassle of having your TA contact O for the refund:cool:

[summertripnj11]

This also happen to me this week with my deposit of $1,500, my TA called and will give me a credit of $15.00 on my shipboard account.

[orchestrapal]

This is our first cruise with O so no real expertise here but for the initial deposit and the final payment I did not see a surcharge on our CC. We use the USAir Master Card (Barclay Bank). Maybe we were fortunate that on both charges O used a different bank other than their Irish one.

 

We used two Barclay Bank US Airways MasterCard's and one was charges the 3% while the other one was not. Oceania did refund the charge.:D

[orchestrapal]

If you know you are charged the FTF for your Oceania payments why not just use the Capitol One card for the cruise payments :confused::confused:

Save the hassle of having your TA contact O for the refund:cool:

 

And miss the thousands of miles for that first class upgrade!::confused:

[HarryTravels]

Or, perhaps it is the policy of your Credit Card not to charge such a fee. Not every card does.

We had the charghe on a Citi Bank MasterCard and we then cancelled for personal reasons 5 months prior to departure. we received a refund of the deposit and the foreign transaction fee.