VISA Cross Border Fee/Foreign Exchange Fee

[Fairgarth]

Just came off the QM2.  My U.S. Visa card, issued by a U.S. bank, was billed in USD by Cunard for on-board charges as I expected.  The bank has added a "Cross Border Fee/Foreign Exchange Fee" of 1.5%.  Across which border exactly?  And what foreign exchange exactly?  I have a sneaking feeling that if the charge originated in Southampton in USD rather than continental USA, banks take it upon themselves to screw their customers.  Before I tackle the bank, I find it hard to believe that all of Cunard's U.S.guests are being clobbered like this.  Are they?

[Underwatr]

Just guessing, but many US issuers now charge for US$ transactions when they've been processed though a non-US payment processor. Where were you cruising from and to?

 

Not all US guests see that charge. CapitalOne hasn't charged foreign exchange/use fees in years, if ever. My Citibank Costco card stopped charging a foreign use fee within the past couple of years although my Citi Double Cash Mastercard still charges a 3% foreign transaction fee, even when the charge is run in US Dollars

Edited October 27, 2018 by Underwatr

[bluemarble]

42 minutes ago, Fairgarth said:

Just came off the QM2.  My U.S. Visa card, issued by a U.S. bank, was billed in USD by Cunard for on-board charges as I expected.  The bank has added a "Cross Border Fee/Foreign Exchange Fee" of 1.5%.  Across which border exactly?  And what foreign exchange exactly?  I have a sneaking feeling that if the charge originated in Southampton in USD rather than continental USA, banks take it upon themselves to screw their customers.  Before I tackle the bank, I find it hard to believe that all of Cunard's U.S.guests are being clobbered like this.  Are they?

 

The charges I have seen on my US bank credit card for on-board charges on QM2 are described as follows:

 

"QUEEN MARY 2 CUNARD LINE GBR $23.70".

 

In other words, even though the charge is in US dollars, the origin of the charge is considered to be Great Britain. As such, this is considered to be a foreign transaction by most US credit card companies. I use a credit card that does not incur foreign transaction fees for just this sort of situation.

Edited October 27, 2018 by bluemarble

[Neuhoftraveler]

The following was written and posted before seeing the two preceding posts:

 

I can't speak for Cunard's "guests" (a/k/a customers), but I think you have it exactly right. Some US banks apply the fee to any transaction billed by a merchant outside the US, regardless of what currency the transaction was billed  in (forgive the grammatical lapse, I do know better).  You might consider switching to a different card issuer that doesn't charge foreign-transaction fees, such as Capital One Bank.  Or consider yourself lucky that the fee is only 1.5%.  Some banks charge as much as 3% (or used to).

Edited October 27, 2018 by Neuhoftraveler

[Underwatr]

2 minutes ago, bluemarble said:

"QUEEN MARY 2 CUNARD LINE GBR $23.70".

On my QM2 cruise last Christmas we ended up with about a dollar or two left in OBC so there was no onboard charge to my card, but the future cruise office did bill via Cunard Line -- California.  From a previous year's credit card bill it does appear that onboard charges go via Cunard Line -- Southampton.

[bluemarble]

7 minutes ago, Underwatr said:

On my QM2 cruise last Christmas we ended up with about a dollar or two left in OBC so there was no onboard charge to my card, but the future cruise office did bill via Cunard Line -- California.  From a previous year's credit card bill it does appear that onboard charges go via Cunard Line -- Southampton.

 

On a similar note, I found it interesting that shore excursions I purchased through the US Voyage Personaliser were indicated on my credit card statement as also originating from Great Britain.

 

"CUNARD LINE VOYAGE PER CUNARD LINE GBR $172.00"

 

On the other hand, I happened to book this particular voyage directly with Cunard on the US web site and both the initial deposit and final payment to them were indicated as originating from California.

 

"CUNARD LINE 06617530565 CA $..."

 

 

[Bigmike911]

American Express card, including those issued by banks. (my amex card is issued by BofA) do not charge foreign fees. There are others US issued cards that don't, check with your issuer.

 

If you are in some foreign countries, the retailer, may, sensing your an American, offer to process the transaction in US Dollars. Don't do it. The retailer has a 'deal' with his processor to add an additional hidden fee in the exchange and split it with the processor. Your bank will charge you for the exchange too.