Currency conversion rate

[Corsair8]

Does anyone know what currency conversion rate Cunard are using at present for US dollars to UK pounds?

Our on board account totalled 640 US dollars and yet our credit card has been

charged with 675 UK pounds. I know that Cunard are not renowned for their generosity when converting from one currency to another but this seems excessive...

[cruiseluvva]

That doesn't seem right at all. I would ring ASAP and query it.

[cunardaddict]

Does anyone know what currency conversion rate Cunard are using at present for US dollars to UK pounds?

Our on board account totalled 640 US dollars and yet our credit card has been

charged with 675 UK pounds. I know that Cunard are not renowned for their generosity when converting from one currency to another but this seems excessive...

 

The exchange rate is not fixed by Cunard. They charge US $ to your CC account and your CC company fixes the exchange rate.

 

Only cash exchanged or taken on account on board is changed on a Cunard exchange rate and not really recommended.

[fantasy51]

I know that in some foreign countries you get the option of paying bills with their currency or yours. If you settle on THEIR currency, then it's charged at the rate set by your banks. If you settle on YOUR currency, then the rate is set by them and they can do what they like. However, I can't imagine Cunard indulging in such dodgy practices.

 

I definitely agree that you need to query it with them. Perhaps they have charged you for something extra by mistake, something that was not on your last bill. I have heard of people being charged for the bath robes if the steward could not find them.

[capnpugwash]

Does anyone know what currency conversion rate Cunard are using at present for US dollars to UK pounds?

Our on board account totalled 640 US dollars and yet our credit card has been

charged with 675 UK pounds. I know that Cunard are not renowned for their generosity when converting from one currency to another but this seems excessive...

 

Cunard will have charged USD to your credit card which I assume is in AUSD so it should be converted by the credit card company into AUSD not STG.

[ToadOfToadHall]

Why would your credit card be charged in UK pounds if you are in Australia ?

 

640 US dollars is 704 Aus dollars or 384 UK pounds, so your figures can't possibly be right.

[Corsair8]

Thank you everyone for your help. Everything is now sorted and it was my mistake as I had misread Cunard's account :o Sorry to have wasted everyone's time!

[Pushka]

You have to make sure the supplier (In this case Cunard) charges in their currency (USD) and does not convert to the currency of your card, and then charge you. The Bank rate is far superior to the Cunard exchange rate. I've got a card that converts the same as the international exchange rate.

[ToadOfToadHall]

You have to make sure the supplier (In this case Cunard) charges in their currency (USD) and does not convert to the currency of your card, and then charge you. The Bank rate is far superior to the Cunard exchange rate. I've got a card that converts the same as the international exchange rate.

 

Why do people think that Cunard do this ?

 

I've seen endless people on other forums say you must tell them not to convert it to UK pounds (or whatever your currency is). You don't need to tell them because they never do this, they just charge your CC in US dollars and you CC company handles it. It's no different to using a CC in any country that uses a currency different to yours; they charge in their currency and the CC company converts it.

[Pushka]

No that's not true. You are often asked, when staying at International hotels which currency you want the facility to charge you. Your own currency or theirs. It makes sense for Cunard to do the same.

 

I've been asked many times what currency I want charged to my card when travelling overseas.

Edited February 24, 2014 by Pushka

[ToadOfToadHall]

No that's not true. You are often asked, when staying at International hotels which currency you want the facility to charge you. Your own currency or theirs. It makes sense for Cunard to do the same.

 

I've been asked many times what currency I want charged to my card when travelling overseas.

 

I've not once been asked that, in a hotel or when buying anuthing. It makes no sense for them at all, because as long as they get the amount they want in their currency then they will be happy. It's simpler for a hotel/cruise line/shop/restaurant to charge in their own currency.

 

I've used my CC in the US, Canada, most of Europe and the Middle East and not once have I been asked if I want the price in pounds.

[Norfolk Brit]

I've used my CC in the US, Canada, most of Europe and the Middle East and not once have I been asked if I want the price in pounds.

 

I've been asked many times when abroad if I wish the shop/hotel to charge the card in euros or GBP; in fact, I was asked two weeks ago in Madeira. From memory, it's in the seller's financial best interest, but not in mine, to do the conversion and charge GBP, not euros (dollars etc).

 

A quick look at various UK financial advice websites will confirm that it's common practice.

 

Mary

[cunardaddict]

I've used my CC in the US, Canada, most of Europe and the Middle East and not once have I been asked if I want the price in pounds.

 

Well, if your CC would have been issued in Euroland almost every sales point in UK or Switzerland would ask this question. As the UK travellers 'travel to Europe' we are as polite as we can and do not annoy them with asking for such decisions.

 

The shops do not decide the exchangerate themselves. The difference is that by paying in your currence you will get the interbank exchange rate of the day of purchase and also a precise figure of what the purchase has cost in your currency. If you pay in local currency the CC card company will charge you with the rate of the day of booking the sales. That may be a different day i.e. if purchase is done in a weekend.

 

Paying by bank card is similar.

 

Paying cash in a foreign currency is the worst alternative. The rates are usually terrible with the exception of St. Maarten.

Edited February 24, 2014 by cunardaddict

[ToadOfToadHall]

On the last cruise I was on a few months ago, I used my credit card in several European countries. Not once was I asked if I wanted to pay in pounds. The reason on one asked is because I'm paying in that country's currency. A shop/restaurant or whatever is not interested in what it costs you in UK pounds, they are only interested in the amount in their currency.

 

Every credit or debit card statement I've every had that lists non UK transactions will say something like:

 

XYZ US Dollars @ whatever rate : £ABC

 

The bill is always paid in the currency of the country you are in. Your credit/debit card issuer converts it to your currency.

[Norfolk Brit]

A shop/restaurant or whatever is not interested in what it costs you in UK pounds, they are only interested in the amount in their currency.

 

The bill is always paid in the currency of the country you are in. Your credit/debit card issuer converts it to your currency.

 

Have a little read; it's quite enlightening: http://www.thisismoney.co.uk/money/holidays/article-2019013/The-great-holiday-spending-racket-add-5-bill.html

 

Mary

[ToadOfToadHall]

Have a little read; it's quite enlightening: http://www.thisismoney.co.uk/money/holidays/article-2019013/The-great-holiday-spending-racket-add-5-bill.html

 

Mary

 

I stand corrected then, I'll have to admit that. It does seem to be happening.

 

But as I say, it's a new one on me, as I've never seen it before myself so I've learned something there !

[cruzadict]

When using our credit/debit card in lanzarote last month we were asked every time if we wanted it in Euros or Sterling. When putting the transaction through it is actually the card reader that prompts this and shows the two currencies.

[2irisheyes]

On two cruises in recent years (not Cunard) the cruiselines did the conversion of our bill from US$ to Sterling despite our request not to convert. The conversion was at a much poorer rate than should have been used. When I complained on returning home the difference was quickly refunded. They asked how much the difference was and accepted what I said with no quibbling. I had been fully expecting an argument about it. I think they knew what they were doing and were trying it on. It wasn't a vast sum but it was more the principle of the deed. It is a nice little earner when multiplied a few hundred times. I am pleased to say Cunard has not tried this trick.

[Pushka]

When hotels and cruise lines make the conversion themselves they earn a nice little profit at no extra effort. So of course it's in their best interests, but never ours, for them to do so. Sometimes they don't even give you the courtesy of deciding, and many consumers don't even understand the implications of the question. I always state what I want to do as sometimes them doing the conversion is the default they use. Maybe it's because our credit cards, being Aussie ones, has made these issues more relevant for us.

 

As I said before I have a credit card used only for international transactions because of its excellent exchange rate.

Edited February 24, 2014 by Pushka

[cunardaddict]

When hotels and cruise lines make the conversion themselves they earn a nice little profit at no extra effort. So of course it's in their best interests, but never ours, for them to do so. Sometimes they don't even give you the courtesy of deciding, and many consumers don't even understand the implications of the question. I always state what I want to do as sometimes them doing the conversion is the default they use. Maybe it's because our credit cards, being Aussie ones, has made these issues more relevant for us.

 

As I said before I have a credit card used only for international transactions because of its excellent exchange rate.

 

Pushka, the exchange rates of international operating CC card providers should not vary between them. Only their surcharge for foreign use may vary as stated in your CC contract.

 

In civilized countries shops and service providers are required by their own national law to charge only in their national currency. I.e. in Germany no shop may charge your CC with AUSD, only with EURO. If a charge in your home currency is offered by the use of an electronic card reader and not a paper copy runner this will be a service of your CC company rather than of the local shop. The shop will only receive the original amount less a CC service charge.

[2irisheyes]

cunardaddict - as far as I am aware cc companies in the UK use the Visa or MasterCard rates of the day of exchange which can easily be checked on a website listing historic rates. The difference in end rate used with different cards is down to the handling/currency exchange charges imposed by various banks which are quite often hidden in the exchange rate.

[Pushka]

cunardaddict - as far as I am aware cc companies in the UK use the Visa or MasterCard rates of the day of exchange which can easily be checked on a website listing historic rates. The difference in end rate used with different cards is down to the handling/currency exchange charges imposed by various banks which are quite often hidden in the exchange rate.

 

Yes.

 

Pushka, the exchange rates of international operating CC card providers should not vary between them. Only their surcharge for foreign use may vary as stated in your CC contract.

[laktex]

Pushka, the exchange rates of international operating CC card providers should not vary between them. Only their surcharge for foreign use may vary as stated in your CC contract.

 

QUOTE]

 

That is certainly not my experience. I like Pushka have a particular card for most of my foreign travel transactions where the rate appears significantly better than my other cards. I have seen several points difference between them on the same day.

[Pushka]

Yes laktex, sounds just like my card. No international transaction fees either. It's designed for international transactions.

[2irisheyes]

laktex - I suspect the reason your card appears to have a significantly better rate is because it does not impose an exorbitant handling/exchange fee. Some banks combine this in the exchange rate figure which makes customers think they are getting a better or worse rate. It is the extra bank charges which vary. Visa and MasterCard have set rates for their cards which go up and down by the day and banks then add on their charges.