Onboard Expenses and Foreign Transaction Fees

[journeyfan]

This issue has been discussed in the past with conflicting answers by posters. According to the Oceania website:

 

Oceania Cruises credit card transactions are processed through our bank in U.S. Dollars. Please be aware that some Visa, Discover Card and MasterCard issuing banks impose a “Foreign Transaction Fee” on credit card transactions for on board purchases and purchases processed outside of the U.S. even if the transaction is denominated in U.S. Dollars.

 

We will be on the Riviera soon on a Caribbean cruise. If we make purchases on board, will those charges be processed by a bank in the US or by a bank outside the US? If it's the latter, we will be assessed a 3% FTF on all our credit cards except for one. Do we need to use that one to avoid the fee? We have not been charged the fee when booking cruises or making final payment. It's only our onboard expenses that I'm concerned about.

[Mura]

I haven't seen a complaint about being levied a transaction fee on on-board purchases in quite some time.

 

In looking at the paragraph you quote, it seems to me that entity to ask is your credit card. What is THEIR policy?

 

Mura

[pinotlover]

We've always paid with a credit card that has no FTF, so it's never been an issue. ;) Get my UA mileage credit and no FTF!

[hypercafe]

Oceania on board currency is US dollars. We have never been charged a foreign transaction fee as our card is in US dollars.

 

 

 

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[ORV]

This issue has been discussed in the past with conflicting answers by posters. According to the Oceania website:

 

Oceania Cruises credit card transactions are processed through our bank in U.S. Dollars. Please be aware that some Visa, Discover Card and MasterCard issuing banks impose a “Foreign Transaction Fee” on credit card transactions for on board purchases and purchases processed outside of the U.S. even if the transaction is denominated in U.S. Dollars.

 

We will be on the Riviera soon on a Caribbean cruise. If we make purchases on board, will those charges be processed by a bank in the US or by a bank outside the US? If it's the latter, we will be assessed a 3% FTF on all our credit cards except for one. Do we need to use that one to avoid the fee? We have not been charged the fee when booking cruises or making final payment. It's only our onboard expenses that I'm concerned about.

 

In answer to your question, yes I would use your one card that charges no FTF's to be on the safe side. I always do, although it's not my preferred card to use.

[ORV]

Oceania on board currency is US dollars. We have never been charged a foreign transaction fee as our card is in US dollars.

 

 

 

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It's all about what country the bank is in that payment goes to, not what currency it's charged in.

[hypercafe]

It's all about what country the bank is in that payment goes to, not what currency it's charged in.

 

The only place I have ever heard of this Is Oceania, however I asked AMX and was told the fee is if they have to convert the charge to US dollars. Capital one gave me the same answer. My experience has been that I was not charged a fee as there was no conversion as both were in US dollars. I would suggest to the OP to check with their credit card company if they want to be sure of their personal situation.

[journeyfan]

Actually, I know the policy of all my credit cards. If the charge is in US $ but the fee is then processed in a foreign bank that converts to $ to their currency, all but one of my credit cards would charge the FTF. Yes, to be on the safe side, of course I could use that one card that doesn't charge this fee for our Oceania onboard charges BUT that card isn't the one that offers me a 3% cash back. Obviously, I would prefer to use that card unless my 3% cash back is then eaten by the 3% FTE. That's why I'm asking if anyone has been charged that fee by Oceania recently.

[LHT28]

I usually have extra USD at the end so pay my onboard account in cash it just depends on how much you spend if this is an option

 

Last cruise I had OBC that covered my expenses so no worries ;)

[JimandStan]

That's why I'm asking if anyone has been charged that fee by Oceania recently.

 

Let us be clear, please.

There has never even been a suggestion that Oceania charges or benefits from that fee.

 

It is (was?) strictly a credit card service charge, and Oceania ceased processing payments through the Irish Bank which triggered it, several years ago.

[journeyfan]

Bad wording on my part, Jim & Stan. I know Oceania wasn't charging the fee; it was the credit card companies. But Oceania precipitated that charge by processing payments for onboard expenses through an Irish bank. I was trying to figure out if Oceania had stopped using a foreign bank. Apparently they have.

[hondorner]

To the best of my knowledge, they no longer use the Irish or other foreign bank to process their credit cards, or else they have talked the bank into waiving the fees.

 

We used to see complaints about that all the time, but I haven't seen it mentioned in years. In this case, it IS Oceania you want to ask to be certain, as you are correct - it was Oceania's use of the Irish bank that precipitated the fees, obviously only with the cards that charged the fees.

 

As you know, the fees are entirely bogus and merely a way to skim more money for the credit card processors and banks which charge them. VISA started with 1% (and I think it still is) and banks jumped on the bandwagon with both feet, increasing the fees to 3% and even 5%. The cards which do NOT charge the fees are actually paying VISA and the other processors the minimum fee, and eating that expense as a competitive measure.

 

To be safer, use a card with no FTF fees. You can Google "no ftf" for the latest info. I now have three; the latest is the barclaycard Arrival+ which has no FTF and has a chip. I also have a Schwab Bank Debit Card which has no FTF fees (you're using your own money), has chip AND pin, and refunds any ATM fees you are charged, anywhere in the world. I keep the Schwab Bank account almost empty until I get ready to travel, then deposit more than enough to cover even unanticipated expenses.

Edited December 26, 2014 by hondorner

[hondorner]

Adding to my previous response, I was just setting up the new barclaycard Arrival+ and discovered that while it is primarily chip and signature, I could also associate a PIN with it that can be used at European (and others, I suppose) unmanned ticket kiosks and unmanned gas pumps, among other places requiring CHIP and PIN. This completes my needs for foreign travel, chip & pin MasterCard for credit and chip & pin VISA DebitCard for ATM (no cash advance fees).

 

While the barclaycard accumulates miles at the rate of 2X per dollar, that's not my primary purpose -- airline cards are better for that, in my opinion. The miles accumulated will simply help compensate for the annual fee of $89 (waived the first year).

Edited December 26, 2014 by hondorner

[ORV]

Bad wording on my part, Jim & Stan. I know Oceania wasn't charging the fee; it was the credit card companies. But Oceania precipitated that charge by processing payments for onboard expenses through an Irish bank. I was trying to figure out if Oceania had stopped using a foreign bank. Apparently they have.

 

On this thread a few months ago you had the answers to this.

 

http://boards.cruisecritic.com/showthread.php?p=43574505&highlight=foreign+transaction#post43574505

 

Do you really think it's changed? The same ones that are telling you it has changed now, was also saying it then. You might want to call Oceania or have your TA check.

 

I use my preferred card for payments and my card with no FTF for onboard charges.

Edited December 26, 2014 by ORV

[journeyfan]

You are right, ORV. This was all hashed over a few months ago and I had completely forgotten about it. All that I remembered was being on Riviera in Feb. of this year and being told by the cruise consultant that Oceania was using an overseas bank to process onboard charges. Thanks for calling it to my attention. I see that StanandJim (who are never wrong when it comes to Oceania) posted on July 30th that Oceania is no longer using the overseas bank that assessed the FTF. Sorry for beating a dead horse!

[PaulMCO]

Yes but the clause remains in their updated terms and conditions. So let the buyer beware (use a non foreign transaction card always as you shipboard payment).

Edited December 28, 2014 by PaulMCO

[hypercafe]

Capital One had a card that gives 1.5% cash back on all chargers and has no foreign transaction fee. I just got it to use on Hapag Lloyd as onboard chargers are in Euro. I have used my AMX card on Oceania, it has a fee but was never charged.

 

 

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