Credit Card currency conversion fee?

[Aruba]

We normally use a Capital One card when traveling because there's no currency conversion fee. We're considering using a Discover card for onboard charges for our upcoming Caribbean cruise because of a 5% cash-back promotion that Discover card is running.

I've read that some cruise lines run their onboard charges through foreign banks, even if they're American carriers. Does anyone know if that is the case with Oceania? Any issue with currency conversion fees for onboard charges on a Discover card?

Thanks.

[DOJO466]

"O" runs thru Ireland and yes there is a transaction fee of 1 % if you use Capital One. My credit card gives me 1% per dollar thus no fee per se. The never charged the 1% until this year (actually the credit union paid it for their customers) If you are guaranteed 5% of all your charges and pay your card in full each month I suppose if you do the math you get 4%. However Discover may also charge you the extra 3-4% that they sneak in. Call them for actual details.

[Sharicruz]

We normally use a Capital One card when traveling because there's no currency conversion fee. We're considering using a Discover card for onboard charges for our upcoming Caribbean cruise because of a 5% cash-back promotion that Discover card is running.

I've read that some cruise lines run their onboard charges through foreign banks, even if they're American carriers. Does anyone know if that is the case with Oceania? Any issue with currency conversion fees for onboard charges on a Discover card?

Thanks.

 

 

Aruba,

 

The only credit cards that Oceania accepts are Amex, Visa, and MasterCard.

 

Shari

*****

CCC Member

[DOJO466]

Guess that answers that one:p

[Aruba]

Shari,

Thank you -- so much for that idea!

Discover card is offering 5% cash-back on cruise charges (also hotels, airline tickets, rental cars) in Jan-March. It looked like a great way to cut my onboard costs 5%. I was concerned about a currency conversion fee if O runs the charges through a foreign bank, but since O doesn't accept Discover cards period it's a moot point.

[LHT28]

There have been several discussion on the conversion fees & which cards do not charge the %. If you use the " search" (top right of the forum) for "conversion fees" you should find the other threads

[Aruba]

The "Search" function has not worked for me for several weeks. I don't know why. After reading your message, I tried again -- and it worked fine. Go figure. I thought it was likely that this subject had been addressed previously, and it was.

 

Off subject but in a similar vein, the "Cruise Review" function doesn't work for Jeff. He has to log on to my ID in order to read reviews. Something else we've never figured out...

[capecodder2]

We used our Capital One card for final payment of our cruise and were charged a fee by Cap One for a "foreign transaction". We advised Oceania of it and asked about it. They "refunded" the charge by giving us a shipboard credit for the same amount. We did appreciate it. If anyone gets such a charge, you should speak to Oceania about it and I am sure they will also take care of it. Unless you tell them, they have no way of knowing.

[DOJO466]

Cape Codder

Thanks much for the conversion fee refund advice. I just contacted my TA and YES they will give you a shipboard credit. Boy with the fuel surcharge gone and the conversion fee I see much wine and Martinis in our future.:D Now can anyone fix our 401K?:(

We leave next Thurs and we leave an area that has just been beseiged by Ice and then 20 inches of snow/5 days without power/three no phone. As the old ad used to say "take me away Calgon".

[capecodder2]

Are you by any chance on the Regatta Jan 2? If so, we will see you on board. Although we only had rain, you may be one of the many of those north of us with ice storms and lots more snow. Having live for many years in the Albany, NY, and Worcester, MA areas, we enjoy "mild" Cape Cod now.

[DOJO466]

Yes we will be on the Jan02 Regatta. Please join the Roll Call. There are a number of us meeting at 2pm on the first sea day on the Patio at 2pm to introduce ourselves. Please join us.

[dlb237]

We used our Capital One card for final payment of our cruise and were charged a fee by Cap One for a "foreign transaction". We advised Oceania of it and asked about it. They "refunded" the charge by giving us a shipboard credit for the same amount. We did appreciate it. If anyone gets such a charge, you should speak to Oceania about it and I am sure they will also take care of it. Unless you tell them, they have no way of knowing.

Was the final payment directly to Oceania or through a travel agent?

 

I used my Cap One card for final cruise payment through a travel agent and did not see a foreign transaction fee. --David

[CintiPam]

I am completely floored by the information set forth in this thread. Am I correct in summarizing the above that anyone who uses his U.S. credit card to pay for his cruise on Oceania, a Miami-based company, is paying foreign transaction fees (of 1 to 3% depending on the card) in addition to the rates quoted? That's a large sum of money.

 

Also, you receive a shipboard credit for that amount only good for that cruise and only if you notice this when you get your credit card statement?

 

Please clarify; if this indeed is the case, I am absolutely outraged.

[LHT28]

I am completely floored by the information set forth in this thread. Am I correct in summarizing the above that anyone who uses his U.S. credit card to pay for his cruise on Oceania, a Miami-based company, is paying foreign transaction fees (of 1 to 3% depending on the card) in addition to the rates quoted? That's a large sum of money.

 

 

There was a big discussion here a while back on how some cards charge the fee etc...

You probably could find it searching for "foreign transaction fees"

There was an explanation on how it works it is complex

[CintiPam]

There was a big discussion here a while back on how some cards charge the fee etc...

You probably could find it searching for "foreign transaction fees"

There was an explanation on how it works it is complex

 

I certainly understand the concept of foreign transaction fees, but that is when I actually use my credit card when I am in a foreign country, not when I am paying for a cruise while I am in the U.S. with a cruise line based in Miami!

 

I still want an explanation.

[DaveFr]

I am completely floored by the information set forth in this thread. Am I correct in summarizing the above that anyone who uses his U.S. credit card to pay for his cruise on Oceania, a Miami-based company, is paying foreign transaction fees (of 1 to 3% depending on the card) in addition to the rates quoted? That's a large sum of money.

 

Also, you receive a shipboard credit for that amount only good for that cruise and only if you notice this when you get your credit card statement?

 

Please clarify; if this indeed is the case, I am absolutely outraged.

CintiPam,

 

You can rest easy because your summary of the situation is not correct. The great majority of credit cards do not charge a foreign transaction fee when processing an Oceania charge in US dollars.

 

Most cards only impose a foreign transaction fee when the charge is in a foreign currency. My Costco American Express card is like that. I used it for both our Oceania cruises and there was no foreign transaction fee. Our Mastercard used to impose a foreign transaction fee whenever there was a charge with a foreign entity (i.e., the Irish bank) regardless of the currency used. However, about six or seven months ago, they changed the wording of their agreement so that a foreign transaction fee is only charged now when a foreign currency is used.

 

Check the wording of your credit card agreement and most likely you'll find that your credit card will not charge a fee for your Oceania cruise. Hope this helps.

 

Dave

[Paris182]

I use a WAMU card, which charges me a foreign transaction fee. I actually forget what the percentage is but the fee was 22.50 for 750.00 This is because the bank is in Ireland. Oceania said they would give me a shipboard credit, but that means I have to produce my bank statements so they can be faxed to Oceania. I too was a tad taken aback, paying with American Dollars, on an American Line based in Miami. But that said I had the same issue when I was booked with RSSC. However although the shipboard credit is satisfactory, Oceania is still making a profit if as I have to spend it on the ship. RSSC did say they would refund the fee if wanted in a check. Anyway I figure it will help cover the gratuities if nothing else. I am however in a lowly G grade and I hate to think what the amt would be if I was in OS/VS/PH level

Paris182

[DOJO466]

This is the first time my bank charged what they call an "International Transaction Fee" 1 % of the amount charged.They used to pay it on their customers' behalf but of course the way things are now they have chosen to pass along the charge to the customer:( I have already received my initial deposit on June 09 cruise as a shipboard credit issued by "o" after I forwarded statement to my TA. I have yet to hear about the refund of my final deposit on our upcoming trip next week. TA is working on it and I am sure due to Holiday it's taking more time. This Transaction fee is only 1% it is not the same as the 1-3% additional for foreign purchases issued by a lot of cards (not Capital One).

[CintiPam]

We use an American Express Delta Skymiles card because (as indicated by my name), we live in Cincinnati, where Delta has just about a monopoly at the airport; therefore, we suffer from the highest (or second highest) air ticket charges in the U.S.

 

Guess I will have to find our bill from last summer to ascertain whether we paid a fee; I remember checking the actual Oceania charge to see if it matched the price our travel agent had told us, but I better look for some kind of international transaction fee elsewhere on the bill.

 

Live and learn!

[LHT28]

I certainly understand the concept of foreign transaction fees, but that is when I actually use my credit card when I am in a foreign country, not when I am paying for a cruise while I am in the U.S. with a cruise line based in Miami!

 

I still want an explanation.

 

As I understood it.... it was the CC company that charged the fee because some of the Processing from O goes through a bank in Ireland...not all cards charge the fee.

Oceania is not profiting by the fees but is giving the OBC in good faith.

In the previous discussion here it was all explained

 

We do not have the problem with the Canadian CC so best to check the other threads on the topic.

Here is one to start you off

http://boards.cruisecritic.com/showthread.php?t=635113&highlight=foreign+fees

Lyn

[Benita]

We always use a Capital One card because they do not charge a foreign bank fee or foreign currency fee. I was surprised that one of the above posters had to pay a fee using that card. We just got back from the Philippines where I used the card for all our purchases (they use the Philippino peso there) and was relieved to check the online statement and saw there was no fee.

[CintiPam]

CintiPam,

 

You can rest easy because your summary of the situation is not correct. The great majority of credit cards do not charge a foreign transaction fee when processing an Oceania charge in US dollars.

 

Most cards only impose a foreign transaction fee when the charge is in a foreign currency. My Costco American Express card is like that. I used it for both our Oceania cruises and there was no foreign transaction fee. Our Mastercard used to impose a foreign transaction fee whenever there was a charge with a foreign entity (i.e., the Irish bank) regardless of the currency used. However, about six or seven months ago, they changed the wording of their agreement so that a foreign transaction fee is only charged now when a foreign currency is used.

 

Check the wording of your credit card agreement and most likely you'll find that your credit card will not charge a fee for your Oceania cruise. Hope this helps.

 

Dave

 

Thanks, Dave, for your very clear and helpful information. I never even dreamed that you would have to pay additional fees for charging American dollars!

[CintiPam]

As I understood it.... it was the CC company that charged the fee because some of the Processing from O goes through a bank in Ireland...not all cards charge the fee.

Oceania is not profiting by the fees but is giving the OBC in good faith.

In the previous discussion here it was all explained

 

We do not have the problem with the Canadian CC so best to check the other threads on the topic.

Here is one to start you off

http://boards.cruisecritic.com/showthread.php?t=635113&highlight=foreign+fees

Lyn

 

Lyn, thanks so much for the thread link, which I just read. I actually was a bank attorney for a year, so I should not be so naively surprised at all the creative ways banks/credit card companies have for making more money.

[Bowie MeMe]

I should not have to mess with new credit cards because Oceania wants to bank with an Irish Bank. It must be one ___ of a deal for Oceania to tick off this many people over several YEARS. I thought I bought a product from an American TA from a company(Oceania) that is based in Miami (I have gone past the office building!)and I paid everything in US$ cause that's all I have (and precious little of those) so I AM upset when I get an International transaction fee. If Oceania wants my American dollars then use an American bank so I don't have to pay for their choice of processors. If WalMart decides to use a bank in some island off the coast will my groceries and underpants be an International Transaction??:mad::mad::mad:

[lcand1923]

As I've stated several times on these boards recently ---

 

The Money section of our local newspaper had an article that one of the things credit card companies are now doing to make more money is charging a foreign currency or international currency fee when a customer is making a purchase that ultimately comes from a manufacturer or service provider outside the US.

 

They cited as examples: cruises that take place in non-US waters, purchases from companies that have a US mailing location but the goods come from outside the US (Cash's of Ireland or Leibkuchen from Germany), portions of flights that are outside the US. They stated that you may even see the fee if your flight starts in the US but ends-up in Europe.

 

In other words, if your credit card company decides that the majority of goods sold at Walmart are manufactured outside of the US, YES - you will be paying the international fee for your underwear and groceries.

 

It is NOT the company that provides the service that decides the fee will be assessed. It is the Issuer of the Credit Card that decides if the fee will be assessed.

 

I think Oceania has been very generous in the past in providing the onboard credit to those people who were charged the fee. I hope they continue the practice because more and more banks will be assessing or increasing the fee.