P & O charging forex transaction fee

I was recently on the Pacific Sun 3 day cruise out of Sydney. When I received my credit card statement for onboard purchases ($1000 worth of drinks - hic!) there was a foreign exchange fee added. Presumably P & O's Accounting system is in GBP not aussie $$'s.

Given that all on board purchases were priced in AUD, and we paid for them using an Australian credit card I wrote to P & O asking for the fee to be refunded, and it was.

I assume that this is common practice so if enough people write to them asking for it to be refunded they just might stop the practice, but at the moment it's a nice little earner for someone

Cheers

Johnny Red Tip

It is the bank that causes this fee to be charged. We use an ANZ Visa card and there has never beedn a foreign currency exchange fee, but people using NAB cards have these fees. There have been several posts on this matter, and those people, like you, had the fee refunded by P & O.

Surely this is a mistake.

How can you be charged a foreign currency conversion fee, when you buy in Australian dollars?

If it is not a mistake and is a bank charge, not a P&O charge, I would change my bank.

It is a bank charge and they "justify" it by saying that it was processed by an overseas operator even though it was in Aussie $$.

Surely this is a mistake. How can you be charged a foreign currency conversion fee, when you buy in Australian dollars? If it is not a mistake and is a bank charge, not a P&O charge, I would change my bank.

I agree that the transaction is in AUD and is paid in AUD so it is ridiculous that this fee would be charged.

People who have found this charge on their account have queried P & O who have referred them to their bank. When they asked their bank (NAB) they were told that P & O processed the charges through their office in the UK so therefore it is a foreign currency transaction. :( It appears that P & O refunds this amount to passengers as a gesture of goodwill when they complain. I also agree with your statement that I would change my bank.

It's a bank charge...

In our experience;

Commonwealth Bank sometimes charges it.

Heritage doesn't

GE Mastercard doesn't

Westpac doesn't

It is a bank charge and they "justify" it by saying that it was processed by an overseas operator even though it was in Aussie $$.

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Gidday Jane.. :)

We concur that this is the situation ..

It can happen that when overseas (or on an O/S owned ship), you could be offered conversion into the home currency of your CC.

If you agree, you will be converted at some obscure conversion rate, and your bank/cc provider may still charge an overseas "transaction fee". (Not a conversion fee)

You can end up with a double whammy of fees!!:eek:

(We have also flown with Tiger, several times and they sell flights here in AUD but process overseas. Dont know whether it still happens, but at that time, Visa/bank charged that fee. On the monthly statements, however, it automatically credited it back)..

Just be sure to check your options carefully, because you have got to pay a conversion fee somwhere.. Some-one has to make money, there no free lunches!! ... But sometimes, someone will try for a double dessert..

S and P

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Gidday Jane.. :)

 

We concur that this is the situation ..

 

It can happen that when overseas (or on an O/S owned ship), you could be offered conversion into the home currency of your CC.

 

If you agree, you will be converted at some obscure conversion rate, and your bank/cc provider may still charge an overseas "transaction fee". (Not a conversion fee)

 

You can end up with a double whammy of fees!!:eek:

 

(We have also flown with Tiger, several times and they sell flights here in AUD but process overseas. Dont know whether it still happens, but at that time, Visa/bank charged that fee. On the monthly statements, however, it automatically credited it back)..

 

Just be sure to check your options carefully, because you have got to pay a conversion fee somwhere.. Some-one has to make money, there no free lunches!! ... But sometimes, someone will try for a double dessert..

 

S and P

I see from your cruise history that you have cruised mainly with RCL and I can't see any P & O cruises listed. What you say is fair comment for the cruises you have been on.

The original post referred to a cruise on the Pacific Sun out of Sydney. I don't think the comments you made apply to P & O Australia cruises on ships based in Australia and operating in AUD. We pay in AUD and I can't see how and why passengers should be charged a foreign exchange fee.

We use an ANZ credit card and they do not charge this fee.

I see from your cruise history that you have cruised mainly with RCL and I can't see any P & O cruises listed. What you say is fair comment for the cruises you have been on.

 

The original post referred to a cruise on the Pacific Sun out of Sydney. I don't think the comments you made apply to P & O Australia cruises on ships based in Australia and operating in AUD. We pay in AUD and I can't see how and why passengers should be charged a foreign exchange fee.

 

We use an ANZ credit card and they do not charge this fee.

Sorry, I thought all P & O was a British cruise line, sending profits back to UK shareholders.... But, if its an Australian company that operating a seperate franchise, that should be different...

Maybe you should speak to Dept of Fair Trading if they dont correct to your satisfaction.

S and P

Sorry, I thought all P & O was a British cruise line, sending profits back to UK shareholders.... But, if its an Australian company that operating a seperate franchise, that should be different...

 

Maybe you should speak to Dept of Fair Trading if they dont correct to your satisfaction.

 

S and P

It is not a franchise. P & O Australia seems to operate separately from its UK parent.

The issue is that passengers using credit cards from some banks are charged and fee whereas passengers using cards from other banks are not. I think that proves fairly conclusively that it is the bank, not P & O that makes the decision whether to charge the exchange fee or not.

The other point, the customer should not have to pay a foreign currency conversion fee just because a company he/she buys goods or services from chooses to pay that to an overseas corporation. Just imagine if every overseas owned corporation in Australia did that!!

Hi,

We use an ANZ credit card and were charged this fee on both the Pacific Sun and Pacific Jewel.

Sharon

Hi,

 

We use an ANZ credit card and were charged this fee on both the Pacific Sun and Pacific Jewel.

 

Sharon

That's interesting. Ours is an ANZ Visa platinum (formerly called and 'coloured' gold). Is your card a Visa?

We had noticed that a fee showed up as a debit with an immediate credit for the same amount. This has happened on several cruises on P & O Aust. I can't say what happened when we cruised with other companies because it was several years ago and we didn't check it.

The other point, the customer should not have to pay a foreign currency conversion fee just because a company he/she buys goods or services from chooses to pay that to an overseas corporation.

Which is why P&O locally have wound up paying up. They're not keen about the bank charging it, but equally it's only because of their own uncommon structure that the fee has been incurred.

That's interesting. Ours is an ANZ Visa platinum (formerly called and 'coloured' gold). Is your card a Visa?

 

We had noticed that a fee showed up as a debit with an immediate credit for the same amount. This has happened on several cruises on P & O Aust. I can't say what happened when we cruised with other companies because it was several years ago and we didn't check it.

Yes our cards are ANZ Visa cards - they are blue. We saw it on our statement and just assumed that's what they do! :confused:

Sharon

A 28 Degrees card (formerly Wizard Advantage card) is great. It's a Mastercard credit card and incurs no charges.

A 28 Degrees card (formerly Wizard Advantage card) is great. It's a Mastercard credit card and incurs no charges.

Yes Sandy, I was charged this fee a couple of times and am now using this card for onboard purchases to avoid it altogether.

When I queried the charges with Coles Source Mastercard, they said that "as a gesture of good will" they would refund the charge :confused: :rolleyes:

Thanks for all the replies.

The credit card was a NAB one, so I think I'll take the issue up with them - just to see what the response is.

cheers

They charged my GE Mastercard. Looks like I have a phone call to make Monday.

They charged my GE Mastercard. Looks like I have a phone call to make Monday.

Interesting... I've used mine several times and never been charged it!

Here's the response from the NAB:-

"Hi John,

I have investigated the transaction and note that the payment, though made in Australian Dollars, was paid to a London based merchant and was not a domestic transaction.

The fee was correctly charged. "

I will be taking this further ;-)

I will be taking this further ;-)

What was the result of taking it further?

Presumably was shown the terms showing that if it a transaction charged overseas then it is subject to a fee. ;-)

Quite possibly.

ANZ created a list of exceptions, including cruise lines and Tiger Airways, so as to only screw over some customers in this situation, rather than all.