Credit cards & foreign country fees

[scdreamer]

Just curious

Did they give you a reason they charge the fee ...Oceania is based in Miami I don't know why they think it is a Foreign Country ??

 

As I recall, the deposit and final payment funds were to be processed through a bank in Ireland.

 

As I think about it, I was the one who actually gave the CC company that information - my TA had advised me of the fact when we first booked the cruise - so if, in fact, funds are no longer associated with a foreign bank, of course B of A would not have charged the 3% fee.

 

We traveled in Mexico, Canada and in Europe over the last few years, and using our AlaskaAir Visa, we got hit with the transaction fees, so I am trying to be extra careful this time around.:rolleyes:

[happy cruzer]

Betty, thank you so much for sharing your knowledge.

 

I too have the Chase Freedom (used to be Cash Builder card). My deposit made in Feb of this year was accurate i.e. no 3% fee. The merchant was listed as Oceania and an 800 number.

 

Just for my info, do the fees show up as a seperate line item?

 

I noticed that a charge for a purchase in Canada. Just had one line.

 

The charge on the slip from Canada said 39.10 and on my Chase statement it said 40.17. I'm assuming that is a currancy conversion charge of some sort?

 

So now I have to decide what to do at the end of my TA next year. I really hate to get an extra card.

[mike35]

Has anyone had any extra charges for using a Citibank (American Airlines frequent flyer)card with Oceania? That's my other favorite for getting mileage.

Thanks for your input and knowledge,

Suzie

 

Hi Suzie - yes, CitiBank's American Airlines card does tack on a 3% service charge on all foreign purchases. Why? Because they can. Oceania does process their credit card payments through an Irish bank. Hence, if you use the majority of credit cards that impose foreign transaction fees, you will see a separate "foreign transaction fee" 3% line item on your statement. We always use our Capital One card for Oceania bookings and all overseas purchases - they're one of the few cards that don't tack on this onerous fee.

[Takyla]

This whole issue is extremely confusing..We paid our final deposit on a BofA Alaska Airlines Mileage card in early August and we were not charged any additional fees for "foreign currency conversion".

 

We spent 4 months in British Columbia this summer (we live in California) and I used this card for purchases, gas, grocerires, etc (attempting to build up mileage points) and I noticed when I got my statement that we were being charged 3% on every transaction. We stopped using the card in Canada.

 

If we used our BofA debit card to get cash at the ATM machine, we were not charged a fee.

 

We decided to contact Capital One after reading the threads and they do not charge any fees for use of the card outside the U.S. This is on there web site and also verified by one of the employees that we talked to.

You must advise them what dates and countries that your traveling to before you leave to avoid any problems with transactions being rejected and if you are booking any private tours or transfers thatr equire payment in advance, it's wise to contact Capitol One and tell them of the upcoming charges while you are still at home.

[surus]

Does anyone know if AMEX charges this fee?

[TERRIER1]

I paid my deposit of $1,000 with a Citibank Master Card American Advantage card. I just check my statements and I do not have the 3% chanrge although the line item on the statement says Oceania with a toll free number and IRL which I assume is Ireland. I will not be paying the the balance with the Citibank card though especially since I am totally unsuccessful with ever get a frequent flyer seat anywhere with American. Do I have to let Oceania know I will be switching cards?

[Rickey 88]

Does anyone know if AMEX charges this fee?

 

Simple answer: NO.

 

Please be sure that there are two different type of charges referred to here:

 

1. A foreign currency conversion fee. This is charged by a credit card bank whenever they have to convert a purchases in foreign currency back to U S dollars. It can be any kind of a purchase made overseas at stores, restaurants, etc. etc.

 

2. A foreign transaction fee. This is charged only by a few banks who have decided that routing funds through an overseas bank (even though no conversion is involved) should be subject to a fee.

 

It seems that it started out to be only JP Morgan/Chase banks, but now some of them do and others don't. It is nothing over which Oceania has any control - they do not levy this charge nor do they receive it.

 

It's best to call your bank first - and be sure you identify that your asking about Oceania charges. Otherwise, they may think that you're inquiring about "Currency" conversion fees and give you the wrong information.

 

Hope all this is helpful .....

[LHT28]

The charge on the slip from Canada said 39.10 and on my Chase statement it said 40.17. I'm assuming that is a currancy conversion charge of some sort?

 

.

 

Sounds like the exchange rate!

[serendipity1499]

Betty, thank you so much for sharing your knowledge.

 

I too have the Chase Freedom (used to be Cash Builder card). My deposit made in Feb of this year was accurate i.e. no 3% fee. The merchant was listed as Oceania and an 800 number.

 

Just for my info, do the fees show up as a seperate line item?

 

I noticed that a charge for a purchase in Canada. Just had one line.

 

The charge on the slip from Canada said 39.10 and on my Chase statement it said 40.17. I'm assuming that is a currancy conversion charge of some sort?

 

So now I have to decide what to do at the end of my TA next year. I really hate to get an extra card.

 

Happy...Believe it still shows as a separate amount..On our Chase Freedom Card statement from 2005 the charge read as follows:

 

Line 1)"(bunch of numbers plus) Lider Kennedy Santiago $39.01"

Line 2) " 11/23 Chilean Pesa "

Line 3)"19, 990 X.0.0018095061(exchg rate) 0.92 (exchng rate adj)"

 

The same sequence was repeated for 6 purchases in Chili...

 

Last year we only had one conversion charge for pearls in Isle de Margarita, Brazil & Chase charged us a 3.32 % Exchange Rate adj..(also shown on 3 different lines) So my pearls were more than they quoted me in USD...Naturally I was annoyed about that, but could do nothing.. :( From now on will not use the Chase card outide of the US, unless we can be guaranteed that they are puting it through in USD..I like using Chase as we auto. get 1% back off our statement every month..

 

Since I was aware that Oceania banked in Ireland I was very concerned about this, as our cruise is a great deal of $$$..When I spoke to our TA, she checked with her Oceania Outside Sales Rep...He told her it was corrected on most cards but if our card did charge us Oceania would refund it..Ok, so we put our deposit on our Chase Freedom Card & also paid final balance with it...Happy to say that, no currency conversion was on either statement from Chase..:) Phew...LOL

 

However, DH & I each applied for CapitalOne cards (two different No.'s) with a very low Credit Line & we will use tthem for any purchases outside of the U.S.on our Amazon Cruise next month...We'll still use our Chase card for the Oceania bill & hope for the best..

 

Re your credit card slip which said $39.10 from Canada & your final bill said $40.17 (USD) ...I don't think that was a currency conversion fee, I really think that is the normal exchange rate you pay when converting Canadian to U.S. dollars..Because of the class action law suit, Chase must now advise their clients in writing of the actual 3.33% conversion fee, but it's still OK for them to charge it..

 

CapitalOne does not charge a converstion fee..We hate to have more cards, but are keeping these with a very low limit for our travels..Hope this helps..:) Betty

[happy cruzer]

Thanks so much. I will know now the proper names of the fees to ask about when I call Chase to double check what is going on, kinda of strange I don't think we have any of the fees because I have never seen them listed. This is a very old card that started life in the early 80's as one through a bank then that bank was bought, and so forth through about 3 mergers to now being Chase. so I will definitely check it out.

 

an aside, recently I took a check to a branch office of the issuing bank to cash. They wanted to charge me a fee to cash a check on them. I thought that was strange. oooh weelll.

 

Thanks and everyone have a great time cruising!

[mike35]

Simple answer: NO.

 

2. A foreign transaction fee. This is charged only by a few banks who have decided that routing funds through an overseas bank (even though no conversion is involved) should be subject to a fee.

 

It seems that it started out to be only JP Morgan/Chase banks, but now some of them do and others don't. It is nothing over which Oceania has any control - they do not levy this charge nor do they receive it.

 

 

Quoted from "The Penny Pincher":

 

Are there any Credit cards that do not charge extra for foreign charges?

Thanks Rod

Answered by The Penny Pincher

 

Dear Rod,

All visa and master cards will charge at least a minimum amount of 1%. From there the difference can become striking. Bank card issuers of Visa and Mastercard can tack on as much as another 2 to 4% above the 1% minimum. If you use your card to withdraw cash you can have another 4% tack on as well. It used to be that the best rates for exchanging currencies was by using bank cards, however, this has changed in the past few years.

Using a credit card overseas is convenient and does provide protection in the many areas that I discussed previously. The foreign transaction fee is not that big of an issue, what is is your bank's individual policy and charges that they track on to your transactions.

In general these are some fees charged by major credit/charge cards:

• American Express charges a flat 2% for foreign transactions.

• Diners Club charges a flat 2% for foreign transactions and a 4% fee for cash advances.

• US Bank Visa, Citibank MasterCard and Chase MasterCard all charge a 2% foreign transaction fee.

Cash advances are approximately 4%. This fee is in addition to the 2% foreign transaction fees.

The point to understand is that it pays to check with your bank and determine what card will offer you the best benefit while your overseas.

 

 

Note that Capital One is NOT listed as one that charges this fee; I confirmed with them today that they do not charge it, but most of the others have found yet another way to milk the gullible public.

[serendipity1499]

Quoted from "The Penny Pincher":

 

Are there any Credit cards that do not charge extra for foreign charges?

Thanks Rod

 

Answered by The Penny Pincher

 

Dear Rod,

All visa and master cards will charge at least a minimum amount of 1%. From there the difference can become striking. Bank card issuers of Visa and Master card can tack on as much as another 2 to 4% above the 1% minimum. If you use your card to withdraw cash you can have another 4% tack on as well. It used to be that the best rates for exchanging currencies was by using bank cards, however, this has changed in the past few years.

Using a credit card overseas is convenient and does provide protection in the many areas that I discussed previously. The foreign transaction fee is not that big of an issue, what is is your bank's individual policy and charges that they track on to your transactions.

In general these are some fees charged by major credit/charge cards:

• American Express charges a flat 2% for foreign transactions.

• Diners Club charges a flat 2% for foreign transactions and a 4% fee for cash advances.

• US Bank Visa, Citibank MasterCard and Chase MasterCard all charge a 2% foreign transaction fee.

Cash advances are approximately 4%. This fee is in addition to the 2% foreign transaction fees.

The point to understand is that it pays to check with your bank and determine what card will offer you the best benefit while your overseas.

 

 

Note that Capital One is NOT listed as one that charges this fee; I confirmed with them today that they do not charge it, but most of the others have found yet another way to milk the gullible public.

 

Agree with you Mike...One of these days they will decide to charge us for paying our entire bill every month..:rolleyes:

 

BTW the Penny Pincher figure for Chase Master Card is incorrect..Our Chase Freedom Master Card, spelled it out & stated our conversion fee was 3.33% for my pearls last Nov.

 

Lets hope CapitalOne stays the same..Cheers everyone & enjoy your cruises..I know we'll enjoy ours..:) Betty

[suzieque]

Thank you all for the invaluable info on the credit card charges! I went back over my Chase Visa (United Mileage Plus) from my trip to Asia on a Princess cruise and did indeed see that they had charged an exchange rate adjustment which co-incidentally came out to 3%. I just signed up for a Capital One card that earns 2 miles per dollar. That's what I will use for the final payment and the purchases in Europe next summer.

Suzie

[spindrift]

We are leaving for Europe (Rome) for our transatlantic in a couple of weeks. We have never used our credit cards to obtain cash--only purchases (nor ATM's--does that date me?), but we heard that if we obtained our Euros via an ATM on our credit card when we got to Rome, that the conversion rate was much better than purchasing at a bank here in Houston.

 

When I spoke to Capital One, everything was okay for no charges for transactions. When I spoke with our Visa (Marriott) and Visa (Southwest Air), I was told not only would I be charged $10 for each cash transaction but interest would be charged from the day I obtained the cash from the ATM (18 plus percent). When I mentioned that I always pay my full bill each month, they said with cash, interest is charged fron the first day of withdrawal of cash--it is different with purchases charged to the card. Both Visas are Chase--the Mastercard is Capital One. Guess what we did--got our Euros here!!! I was really shocked. Glad the rep told me when I called to get a pin # and let them know when we would be gone.

 

I don't see the interest on cash withdrawals mentioned here--so I thought I would bring that to the forefront as well.

[suzieque]

I may be wrong, but you never want to take a cash advance for that exact reason;interest starts the minute you take the cash. Better to get your Euros via an ATM. Check with your bank to see if they charge for the use of ATMs in foreign countries.

Suzie

[spindrift]

Suzieque-- that is my point--using the ATM period--you are charged for it. No thanks

[lcand1923]

Our VISA was originally issued by Bank One which was taken over by Chase. We have not been charged any foreign currency transaction fees by Oceania for our deposits, final payments, prepaid excursions or onboard charges. We feel we were lucky because when we called the Customer Service department we were quoted a 3% fee. (It was assessed on some purchases made onshore.)

 

AMEX and MBNA Master Cards quoted me 2 to 4% foreign currency transaction fees.

 

State Farm Bank VISA charges a 1% foreign currency transaction fee. The rebate is in State Farm Dollars which can be used to pay for State Farm products. It is the lowest fee I could find.

 

Capital One Bank does not charge a foreign currency transaction fee. A problem with this card, however, is the very low credit limit it imposes. We have used the card for eighteen months and cannot get the credit limit raised. As the customer service manager told me, "We are a quite conservative company and do not like to extend credit."

[digby]

Suzieque-- that is my point--using the ATM period--you are charged for it. No thanks

 

To me the convenience of using ATMs makes it more than worth the fee.

[suzieque]

So here's a new twist. A friend asked me if Capital One might charge a higher exchange rate than Citibank or Chase to make up for the fact that they don't charge the 3% additional "exchange rate adjustment". Anyone know if that is is the case or not?

Suzie

[serendipity1499]

So here's a new twist. A friend asked me if Capital One might charge a higher exchange rate than Citibank or Chase to make up for the fact that they don't charge the 3% additional "exchange rate adjustment". Anyone know if that is is the case or not?

Suzie

 

Good Question & really don't know the answer...

 

My Capitol One is a Visa & my Chase is a Master Card..I went on the Visa WEB site & they say they give their banks the International Exchange rate but it looks like to me that the banks can adjust them..See question 2 on the FAQ's ..I've bold-ed the pertinent info..

 

http://corporate.visa.com/pd/consumer_services/consumer_ex_faq.jsp

 

 

Will the rates shown be the rates charged to my account?

The exact rate you are charged depends on when the transaction is posted to the Visa system which may be later than the day on which you made a purchase, depending on how promptly each merchant handles their Visa transactions. Also, different banks charge different foreign transaction fees for cross-border transactions; some impose no fees. If you frequently travel internationally, the different pricing structures charged by issuing banks should be one of the factors you take into consideration when you select the Visa card that best suits your needs, just as you would compare annual fees, interest rates and rewards programs.

 

How does Visa calculate its rate?

Every day, except weekends, U.S. Memorial Day, Christmas Day and New Year's Day, Visa calculates the rate for the next day's transactions. The Visa rate is selected from a range of rates available in wholesale currency markets or the government-mandated rate in effect one day prior to the applicable central processing date. Visa makes this rate available to issuing banks, which may adjust the rate in billing cardholders. The rate Visa makes available to issuing banks may vary from the rate Visa itself receives. Consumers find that using Visa is a convenient and cost-effective way to make purchases and obtain cash when traveling internationally.

 

Am I reading this wrong? It looks to me that banks can adjust them, but how much I'm not sure..Maysomeone who works for a Bank will get on & answer this question..

 

Now going to look at Master Card & see what they have to say..

 

:) Betty

[serendipity1499]

This is all I could find on the Master card site which was not easy to navigate:

 

http://www.creditcard.org/credit-card-review/Mastercard-exchange-rate-90004.htm

 

Betty

 

P.S. Some banks charge up to 5% Currency exchange rate..

 

.

[lilybug]

Looks like we have that same Mastercard and ours is Jupiter Bank also. Our deposit charge came from Ireland ... it's all very odd to me. We will use our Capital One for all charges relating to this vacation.

[pacmom]

All of our charges--foreign--came from using a card from Jupiter!!! We now use Capital one for all our O and foreign transactions. We just came back from Peru--used ATMs for all cash needs. Four different $100 transactions cost a total of $408. Much easier than carrying a lot of cash or travelers checks. We took $50 in singles for tippping, etc., they would only take bills that had no tears of any kind. Pat

[hondorner]

When you use an ATM for cash, are you using a credit card to get a cash advance, or are you using a Visa Check Card (debit card)? If you are using a credit card, are you not paying interest on the advance from the day of the advance, even if you pay the credit card entirely within the grace period?

[pacmom]

When I use an ATM to get cash, the money comes directly from my checking account. It would have to be a dire emergency for me to take a cash advance on a credit card. Pat