International Transaction Fee

[LynnSD]

I recently paid a deposit for an Oceania cruise in July 2009. When I got my Visa statement, there was a 1% international transaction fee added on. I called the TA, who said the deposit went to a FL address so it must be a mistake on the part of the cc co. I submitted a challenge to the cc. Today I got their response, that the "interchange data re the charge originated in Ireland," therefore the 1% fee was assessed.

 

I plan to contact both Oceania and my (military) credit union tomorrow to pursue this - but has anyone had the same experience?

 

Thanks. Lynn

[hondorner]

Oceania does place your deposits to a bank in Ireland. Some credit cards charge an International transaction fee of up to 3%, many do not. This is purely a matter of your credit card, not any policy of Oceania (other than their choice of bank).

 

Contact your travel agent. Many have been successful in having Oceania issue a credit for the amount of the fee. If your travel agent is not able to accomplish this, you might consider switching travel agents. And, plan to switch credit cards if you plan to do much international traveling.

 

There have been many threads about this subject, many of the posters have suggested which credit cards to use. Do a search of this forum for "credit card fees"; there will be at least half a dozen discussions.

[PHILLIP R. G]

I recently paid a deposit for an Oceania cruise in July 2009. When I got my Visa statement, there was a 1% international transaction fee added on. I called the TA, who said the deposit went to a FL address so it must be a mistake on the part of the cc co. I submitted a challenge to the cc. Today I got their response, that the "interchange data re the charge originated in Ireland," therefore the 1% fee was assessed.

 

I plan to contact both Oceania and my (military) credit union tomorrow to pursue this - but has anyone had the same experience?

 

Thanks. Lynn

On 4/28/08 I put a deposit on a Oceania cruise for July 2009 using my American Express card and there was no additinal charge on my statment. The statment indicated it was to Oceania in Fl.

[LynnSD]

Thanks for your advice!

[Jana]

Hi Lynn,

 

I got a specific credit card solely for travel abroad. Both Visa and MC levy fees for "international" exchange; this particular card company absorbs those fees. It's pretty well-known; as Hondorner said, just do a search and you'll find it (C-O).

 

Trust me, I'm not endorsing this company. But... I've made it work for me, and I got the info off these boards.

 

Jana

[orchestrapal]

Our experience with Oceania is that, when contacted directly, they will

credit back the fee in about three weeks. We have had this occur many times with O because we use a card that gives us the millage which allows travel first class and that is important to us. Most of the non-international fee credit cards that we have looked at don't award millage.:)

[lovecruisingtoo]

Used one of the mileage credit cards the other month for the deposit on a 2009 cruise and there was no transaction fee applied.

[momoforthodoc]

i too have used my regular mileage bearing credit card and had no fees assessed. while i do know that if i used it out of the country they would add on 3%. many banks have changed their policies over the years. i find it interesting to hear that oceania uses a bank in ireland.

jeralyn;)

[lahore]

Not intimating in any what that you shouldn't have asked , but just FYI this one comes up on this board regularly. Search back and you'll find stacks of posts on this and what people did. Being offshore already (in Australia) it's a non-issue for me, but I have noticed here a lot over the years from USA citz.

[Rickey 88]

This subject has been almost beaten to death many, many times in the past - do a search to find them. You will be able to read of those few banks who do charge such a fee - as well as the many that don't.....

I find it amusing that some suggest calling Oceania to "refund" these charges. Folks, Oceania did not levy these charges and did not receive them. The bank did!!!!

They have voluntarily agreed to credit those who ask, but that money comes out of their operating expenses and IS NOT A REFUND!

Bottom line - use those many cards issued by banks who do not levy this unfair fee and avoid using those who do!

[orchestrapal]

BOTTOM LINE when you deal with a company that has it's offices in Florida you DO NOT expect them to use banks in a foreign country. If they do they should transfer the funds AFTER the charges are made on US credit cards. Their operating expenses are not the client's problem.:eek:

[hondorner]

...]I find it amusing that some suggest calling Oceania to "refund" these charges. Folks, Oceania did not levy these charges and did not receive them. The bank did!!!!...

Since I was the only one who mentioned getting a credit for the charge, I assume you were referring to me. I would find the scenario you described amusing, also. That is why I specifically referred to calling a travel agent, not Oceania, and why I specifically described it as issuing a credit, not a refund. I know the difference.

 

As the first responder in this thread, I also immediately suggested a search of the forum, and offered a specific search term, which I first tested to be sure it would achieve the desired results.

[pondnana]

I think a little bit of patience is required. Not everyone has been using this site for years! I for one only found out about it last Dec. and we have been cruising for a while.

[Benita]

There was an article in Conde Nast Magazine last year, where the different credit card companies were compared as to who charged fees for purchases in a foreign currency. They also looked at who charged fees for an overseas purchase charged in US dollars. By using a foreign bank, this is what Oceania passengers are subjected to by certain credit card companies.

To summarize (although this article is a year old and some banks may have changed their policies), there was a fee for the overseas transaction in US dollars (like paying Oceanias final payment) from HSBC, JP Morgan Chase, MBNA, and Providian. No charges were levied by AMEX, Bank of America, Capital One, Citibank, Diners Club and Wells Fargo.

All card companies, with the exception of Capital One charge a fee for a credit card purchase in a foreign currency - like when you use your credit card overseas. These fees are often not on your statement - they are added to the amount due when the money is converted, so it is difficult to realize that was done.

Also, to Rickey 88, Oceania did not levy these fees - you are absolutely correct. However, Oceania chooses to use a foreign bank and does not notify their customers of this, allowing them to pick the proper credit card to avoid these fees. That is not good customer service.

[LHT28]

From Oceania's website

 

PAYMENTS

Any and all payments made by You to Us shall be made in currency of the United States of America or other currency acceptable to Us. All charges for services and products provided on board the Ship must be settled in cash or charged (via credit card acceptable to Us) before Your final disembarkation from the Ship. Any other expenses incurred by You or by Us on Your behalf shall be payable by You on demand. Oceania Cruises accepts no responsibility for credit card processing fees independently assessed by issuing banks. None of these fees separately charged by the issuing banks accrues to the benefit of Oceania Cruises nor do they accrue to the benefit of Oceania Cruises’ credit card processing bank.

 

#21

 

http://www.oceaniacruises.com/T_MainContentPage.aspx?pageuid=4fcb9b6e-d486-49eb-ac88-48cbba9c9403

 

along with other terms & conditions

[merryecho]

Thanks Benita- credit card companies change these charges frequently, so I appreciate having an up to date list of who charges what.

 

And thank you Lynn, for bringing the topic up. I am well aware that some credit card companies charge for overseas transactions, but I had no idea Oceania was calling a purchase made in the US with a US card an overseas transaction- as Benita says because they choose to use a foreign bank and not inform their customers of the choice.

I put our latest purchase on a chase card, and wouldn't have noticed the added percent if it were not pointed out.

[Benita]

Susan, Oceania is not calling it an overseas transaction, but by using a bank in Ireland it is one. The problem is that Oceania is not telling their guests that they are using a foreign bank, so it is a rude suprise when you get your credit card bill.

[lardor]

There was an article in Conde Nast Magazine last year, where the different credit card companies were compared as to who charged fees for purchases in a foreign currency. They also looked at who charged fees for an overseas purchase charged in US dollars. By using a foreign bank, this is what Oceania passengers are subjected to by certain credit card companies.

To summarize (although this article is a year old and some banks may have changed their policies), there was a fee for the overseas transaction in US dollars (like paying Oceanias final payment) from HSBC, JP Morgan Chase, MBNA, and Providian. No charges were levied by AMEX, Bank of America, Capital One, Citibank, Diners Club and Wells Fargo.

All card companies, with the exception of Capital One charge a fee for a credit card purchase in a foreign currency - like when you use your credit card overseas. These fees are often not on your statement - they are added to the amount due when the money is converted, so it is difficult to realize that was done.

Also, to Rickey 88, Oceania did not levy these fees - you are absolutely correct. However, Oceania chooses to use a foreign bank and does not notify their customers of this, allowing them to pick the proper credit card to avoid these fees. That is not good customer service.

 

And to "over-summarize, just get a CapitalOne card (which has no yearly fee)....and there is help for those pesky foreign ATM fees too if you need it......

[Benita]

My feelings exactly (just more wordy). Their mileage program is not great - we usually take a cash back of 1%, but saving 3-5% on the foreign transaction fees makes Capital One a winner for foreign travel.

Now, don't get me started on the best cards for use in the US. (I really need to get more of a life).

[lovecruisingtoo]

To summarize (although this article is a year old and some banks may have changed their policies), there was a fee for the overseas transaction in US dollars (like paying Oceanias final payment) from HSBC, JP Morgan Chase, MBNA, and Providian. No charges were levied by AMEX, Bank of America, Capital One, Citibank, Diners Club and Wells Fargo.

 

In our case, we used the Chase MP airline card for the deposit and were not charged anything but the $1,500 deposit.

 

Don't know if the article was correct to begin with but obviously things have changed with some of the cc providers.

[Benita]

I believe Oceania mainly uses the foreign bank for the final payments. They may have a bank located in the US for the deposits.

[lardor]

I believe Oceania mainly uses the foreign bank for the final payments. They may have a bank located in the US for the deposits.

 

Nope unless they changed from last year.....

[LynnSD]

As the OP, I agree with the people who said that it's an unpleasant surprise that Oceania does not make this extra charge known in advance. I am also unhappy with Navy FCU, whose card I have used for years, but that's another story.

 

Thanks to these posts, I will call AMEX and Wells Fargo - have their cards but rarely use them - to see if it's a free transaction. If not, I will get a C/O card. They send me mail every week, so they'll be thrilled....

 

And I'll see what I can do about getting credit for the small fee on my deposit - at least I haven't paid the whole balance yet.

 

Thanks again -- Lynn

[hondorner]

I use an American Express Rewards card (issued under license from Bank of America) for my Oceania transactions -- no fee. I also use it for most other travel-related expenses. Everything else, I use a Visa Check Card (debit card) issued by B of A and another issued by our local bank for almost all other transactions -- no credit card bill to pay at the en of the month, and no fee for cash advances.

 

But, my most rewarding tip was one I received from these pages -- I opened a high yield checking account with Schwab, and received a Visa debit card that not only avoids most transaction fees, it picks up the charges from any ATM and refunds them, even internationally! There are no foreign transaction fees, there are no cash advance fees (because it's a debit card and I'm simply getting money from my own checking account), and if there are any ATM fees, Schwab pays them. The only possible fee is a currency exchange fee when getting foreign funds from an ATM, which, to the best of my knowledge, is totally unavoidable. And, they pay a higher rate of interest than any of my other accounts (currently about 2%). I have no connection to or interest in Schwab; I'm simply passing on what I gratefully learned here from someone else.

[DaveFr]

As the OP, I agree with the people who said that it's an unpleasant surprise that Oceania does not make this extra charge known in advance. I am also unhappy with Navy FCU, whose card I have used for years, but that's another story.

 

Thanks to these posts, I will call AMEX and Wells Fargo - have their cards but rarely use them - to see if it's a free transaction. If not, I will get a C/O card. They send me mail every week, so they'll be thrilled....

 

And I'll see what I can do about getting credit for the small fee on my deposit - at least I haven't paid the whole balance yet.

 

Thanks again -- Lynn

Lynn,

 

I ran into the same problem with a Juniper Bank Mastercard. After charging the deposit for my Oceania cruise, I discovered a $20 foreign transaction fee because Oceania's bank is in Ireland. My TA contacted Oceania and Oceania gave me a $20 OBC.

 

If you're a member of Costco, you might want to consider using their AMEX card when you charge the remainder your cruise fare. There is no fee for the card and Oceania charges do not incur a foreign transaction fee. You get cash rebates with the card: 3% for Costco gasoline purchases and for restaurants; 2% for travel purchases such as cruises and airplane tickets; and 1% for all other purchases. The foreign transaction fee for purchases in foreign currency is 2% but this amount is at least partially offset by the cash rebate.

 

Hope this helps.

 

Dave