Foreign Transaction Fee!!!

[mmark14]

I asked for a shipboard credit for my $45.00 foreign transaction fee charge imposed on my cruise deposit. There was absolutely no problem! The credit will appear today on my invoice.

The agent said that Oceania will issue a shipboard credit for a froeign transaction fee of up to $250.00 immediately. If the fee is over that amount they just need a copy of the credit card bill.

This gives me the confidence to use my AA advantage card for final payment. If it were not for this thread, i wouldn't have even tried!

Thanks.

Marcia

[Paulchili]

This gives me the confidence to use my AA advantage card for final payment. If it were not for this thread, i wouldn't have even tried!

Thanks.

Marcia

 

Marcia,

That is very true and we all benefit by posting and reading here - that is the purpose of this board.

What about the rest (60 - 75%?) of O cruisers that are not CC members? How should they know what to do?

[Mparis184]

WOW...I never heard of such a fee. I always charge my cruises on AMEX. I have a MC with HSBC and it is a Premier Card so I won't have to worry about any fees using that card either. I will remember to check the next time to make certain I don't have any fees attached to the bottom line.

 

Thanks for letting us know

 

Marion

[Penzance]

Well, I've just joined the Transaction Fee club - not a large amount but it was a surprise :eek: and as it was not authorized by me, I called Oceania immediately. They were very nice and understanding and a rebate check will be sent to me in 4 to 6 weeks!! :) All is well.

[LHT28]

Well, I've just joined the Transaction Fee club - not a large amount but it was a surprise :eek: and as it was not authorized by me,

 

 

Are you saying someone made a payment in your name on YOUR credit card without your permission? :confused:

[Penzance]

No, but when you see your statement and there's an amount which you no nothing about - it's "unauthorized". I had to call my Credit Card office to find out what it was for, when I found it was made by Oceania, I called them and they explained, apologized and promised to refund the amount to me by check in 4 - 6 weeks.

 

Hope I was clearer this time. :o

[LHT28]

when I found it was made by Oceania, I called them and they explained, apologized and promised to refund the amount to me by check in 4 - 6 weeks.

 

Hope I was clearer this time. :o

 

I think the charge was from your Credit card company by all reports

There are many threads on the topic

 

Oceania is giving people the amount in a refund or OBC as goodwill

glad it worked out for you

 

Lyn

[ORV]

No, but when you see your statement and there's an amount which you no nothing about - it's "unauthorized". I had to call my Credit Card office to find out what it was for, when I found it was made by Oceania, I called them and they explained, apologized and promised to refund the amount to me by check in 4 - 6 weeks.

 

Hope I was clearer this time. :o

 

This is how misinformation is spread. Nothing unauthorized about it unless you didn't book a trip with Oceania and weren't paying a deposit or payment on that trip.

 

As Lynn said, the fee is from your credit card company, brought about because Oceania uses a foreign bank.

 

Everybody wants to yell at Oceania about this when they really need to be reading the fine print on their credit card agreements.

[Benita]

There is a happy medium between yelling at Oceania and reading the fine print on your credit card agreement. Although Oceania is welcome to use a bank wherever they want, I don't know of anybody who would think they would be using a foreign bank and prepare for the financial consequences. From what I understand Oceania is giving people the head's up on their invoices now, so they found the happy medium.

[BlewWater]

What's the norm for processing U.S.-based transactions with other cruise lines? Do most of them use foreign banks, or U.S. banks?

 

And what percentage of Oceania cruisers are affected by a foreign transaction fee? I would guess a high percentage since the majority of Oceania cruisers are from U.S., and pay for the cruise with credit card, and foreign transaction fees are almost ubiquitous now. Perhaps I'm wrong with these assumptions though.

 

I agree that the issue is primarily between the traveler and their credit card company. But, I DO feel that the finger needs to be pointed somewhat at Oceania also.

 

I completely understand that the foreign transaction fees are tacked on by the credit card issuer and not by Oceania. Credit card users need to be aware of the fees associated with using their card, and aware of the fine print when they purchase anything online.

 

But I have no doubt that Oceania could, if they wanted to, process their payments through a U.S.-based bank for their U.S.-based customers. As mentioned earlier, it must be financially beneficial to Oceania, even after refunding these fees to a certain percentage of customers, or they wouldn't be doing it.

 

If all the customers were aware of being able to have the foreign transaction fee reimbursed by Oceania, and indeed requested it, I bet the economic scales would tip a bit, and Oceania would switch to a U.S.-based bank. I bet Oceania would also take note if they received more complaints from those affected. Also if the policy was publicized (by media, internet, blogs, travel agents, etc) in a way that appears negative towards Oceania, it would definitely get their attention.

 

I had no real point in my rambling...but I'm done rambling now! :)

[perrpis]

With Oceania I get billed a 2.5% Foreign Transaction Fee on my Amex because I am in Canada and Oceania only bills in USD. So for myself, and other Canadians, it doesnt really matter where the money is being routed from.

 

I do wish however that Oceania would adopt a fare/payment system similar to Celebrity's. With Celebrity they publish fares/charge me in $CAD so I do not have to pay any fee at all. Even my Shore Excursions and Specialty Restaurants (if booked in advance) are in $CAD. Oceania will only charge in $USD. The only up side to Oceania charging us Canadians in USD right now is that I saved $30.00 on my deposit as the CAD was above the USD by .02 at the time of the transaction. Now I am just sitting and watching/waiting for a good time to make my final payment as the $CAD keeps going up.... climb baby climb! :D:p

[LHT28]

With Oceania I get billed a 2.5% Foreign Transaction Fee on my Amex because I am in Canada and Oceania only bills in USD. So for myself, and other Canadians, it doesnt really matter where the money is being routed from.

 

check out one of the Canadian USD credit cards

we use TD VISA

Then I can buy USD when the rates are good & pay in USD no extra fee from RBC Visa;)

[perrpis]

check out one of the Canadian USD credit cards

we use TD VISA

Then I can buy USD when the rates are good & pay in USD no extra fee from RBC Visa;)

 

I really should, although I am a frequent flyer with AC and have the Plat Amex Aeroplan Card so the reward of all those points (on $8,000!) is too enticing for me :p Oh how the clever marketing people have got such a grasp on me! ;)

[LHT28]

I really should, although I am a frequent flyer with AC and have the Plat Amex Aeroplan Card so the reward of all those points (on $8,000!) is too enticing for me :p Oh how the clever marketing people have got such a grasp on me! ;)

Choices choices

We gave up our points on RBC in favour of saving the 2.5% :(

You have do what works best for you;)

[emairs]

I am a frequent flyer with AC and have the Plat Amex Aeroplan Card so the reward of all those points (on $8,000!) is too enticing for me :p Oh how the clever marketing people have got such a grasp on me! ;)

 

I have a Canadian Starwood Amex card. I recently made the final payment for my upcoming Marina cruise in March, and the points I received are worth much more than the 2.5% USD exchange fee, so I'm happy.

[perrpis]

I have a Canadian Starwood Amex card. I recently made the final payment for my upcoming Marina cruise in March, and the points I received are worth much more than the 2.5% USD exchange fee, so I'm happy.

 

 

GREAT CARD! But I am a little biased.... I work for the Starwood Regional Sales office in Toronto. Thanks for being a supporter! :)

[burm]

check out one of the Canadian USD credit cards

we use TD VISA

Then I can buy USD when the rates are good & pay in USD no extra fee from RBC Visa;)

 

 

If you pay your $US credit card in Canadian currency, do you still save that 2.5% or do you lose that when you convert to pay the bill? Is it an extra CC fee on top of the conversion?

 

I am wondering if it is worth my while to take out a $US card if I wouldn't use it all that much and would give up my Air Miles?

[LHT28]

If you pay your $US credit card in Canadian currency, do you still save that 2.5% or do you lose that when you convert to pay the bill? Is it an extra CC fee on top of the conversion?

 

I am wondering if it is worth my while to take out a $US card if I wouldn't use it all that much and would give up my Air Miles?

BURM

I have a USD bank account with TD in Canada

I buy USD when the rates are good & stockpile them for when I need them

I have the Canadian TD USD Visa & I pay in USD from my USD account at the same bank

https://www.tdcanadatrust.com/tdvisa/usd.jsp

 

 

Hope that helps....it is as clear as mud ;)

We do not shop very much at places that give Airmiles or Aeroplan points so not a big issue for me

 

Then you factor in the cost of getting the points against what you can get

We used some of our points for a hotel near the airport 14000 points

To get the points in the first place it cost $1 for each point you earn

So a hotel room cost me $14,000. I hope it is a good room:D

[caribbeansun]

The misinformation on this thread is amazing.

 

The Canadian *wood Amex DOES NOT charge a 2.5% foreign transaction fee. They charge a spread on the conversion from US to Cdn. You will pay the same spread when you go to the bank and buy US. Take a look at the real exchange rate that's posted from the foreign exchange desk - now call your bank and ask now much $100 US will cost you - it's not the same because the bank will charge a premium for doing the conversion which is their profit. Some banks are better than others - Scotiabank is horrible, TD is much better.

 

Yes, Amex does charge a slightly higher percentage premium than the Aerogold card to convert from US to Cdn however in practice I've found that base exchange rate from US to Cdn is actually more favourable via Amex so it basically nets to the same value.

 

And yes, if you cancel your cruise you will lose 2.5% on the reconversion back from US to Cdn. For example - lets say you charge a deposit of $1,000US to your card - the dollar is at par that day so you'll be charged $1,025.00. You change your mind tomorrow and while the dollar is still at par you will only be refunded $975Cdn.

 

And no Canadian banks or CC charge a foreign transaction fee that I'm aware of nor are they hidden in the exchange rate.

 

One odd thing that *wood Amex does:

 

What you need to be aware of though is that non-Cdn$ or non-US$ transactions are first converted to US$ and then to Cdn$ by Amex so you really get slammed on exchange rates when buying in say Euros this way.

 

We charge all US$ transactions to Amex and other currencies to CIBC Aerogold.

 

 

 

Starwood Amex appears to be 3%, which isn't much more that what my bank (CIBC) charges for US dollars. Even if it is a bit more, it is such a great card, that it is worth it.

[caribbeansun]

AND you're still paying the bank a premium (2.5-4%) to do the conversion every time regardless of the prevailing exchange rate.

 

What you are accomplishing though is the removal of exchange rate risk ie. you are protected against a sudden drop because you've banked the dollars.

 

 

 

BURM

I have a USD bank account with TD in Canada

I buy USD when the rates are good & stockpile them for when I need them

I have the Canadian TD USD Visa & I pay in USD from my USD account at the same bank

https://www.tdcanadatrust.com/tdvisa/usd.jsp

 

[LHT28]

And no Canadian banks or CC charge a foreign transaction fee that I'm aware of nor are they hidden in the exchange rate.

 

.

You need to read the fine print in your card holder agreements

 

This from the RBC VISA

Foreign Currency Transactions

We will bill you in Canadian currency. If you or your Authorized Users use a Visa Card or your Visa Account number outside Canada or charge amounts to your Visa Account in a foreign currency, we will convert the charges into Canadian dollars no later than the date we post the transaction to your Visa Account at our exchange rate which is 2.5% over a benchmark rate set by Visa International, a subsidiary of Visa Inc. that is in effect and that we pay on the date of the conversion.

[LHT28]

AND you're still paying the bank a premium (2.5-4%) to do the conversion every time regardless of the prevailing exchange rate.

 

 

sorry you lost me

When I buy USD it is about 1 % above the interbank rate shown

[caribbeansun]

Sorry but you need to understand what you're referring to. This is not a foreign currency transaction fee - this is the exchange premium on the conversion of the dollars.

 

To better explain - a foreign transaction fee is a fee added to a transaction that did not require conversion from the domestic currency. For those of us in Canada that would be the same as charging $1,000Cdn and being charged an additional $30 because the company banks in say Dubai, something we wouldn't have known because we think we're paying in our own currency.

 

I trust you've never seen such a fee on one of your CC statements?

 

 

 

You need to read the fine print in your card holder agreements

 

This from the RBC VISA

Foreign Currency Transactions

We will bill you in Canadian currency. If you or your Authorized Users use a Visa Card or your Visa Account number outside Canada or charge amounts to your Visa Account in a foreign currency, we will convert the charges into Canadian dollars no later than the date we post the transaction to your Visa Account at our exchange rate which is 2.5% over a benchmark rate set by Visa International, a subsidiary of Visa Inc. that is in effect and that we pay on the date of the conversion.

[LHT28]

Sorry but you need to understand what you're referring to. This is not a foreign currency transaction fee - this is the exchange premium on the conversion of the dollars.

 

NO Canadian CC will charge a FTF for CAD to CAD that is correct

 

 

And no Canadian banks or CC charge a foreign transaction fee that I'm aware of nor are they hidden in the exchange rate.

However if you charge something in USD or other foreign currency they do charge an FTF but it is hidden in the conversion rate... correct

http://www.cibc.com/ca/visa/article-tools/credit-card-rates-n-fees.html

[caribbeansun]

I'm sorry but I seriously doubt you are getting a 1% spread. I can't get that rate even when converting >$100,000US at a time.

 

But, rather than just toss unsupported figures around I thought I'd better check and post real conversion rates.

 

Posted rate today via TD Webroker = 1.0067 - expected cost of $1000 = 993.35

 

Cost to convert to US via TD Webroker = 0.989 - actual cost of $1,000 = $1011.00

 

Spread = $17.65 or 1.765%

 

I actually get preferred rates on US conversions at TD so the "street rate" would likely be a point or more worse than what I've posted. IMO TD does have the best US rates of any Canadian bank though.

 

Now lets take a look at Scotiabank. Their rate was 0.959 - actual cost of $1,000 = $1,042.50

 

Spread = $49.15 or 4.915%

 

 

 

sorry you lost me

When I buy USD it is about 1 % above the interbank rate shown