Credit card surcharges

I hope this is in the correct place and that the topic has not been covered before. I was wondering if anyone knows why the cruise lines and travel agents add a credit card surcharge if we choose to pay by credit card, for the cruise , or settle the on board account,or buy shore tours and the like. Do they not make enough money out of us without this???Has anyone any ideas how to try to stop this practice ,I personally think this is just taking advantage of the most convenient payment method to make even more money from us?

Could be because you're a Brit. Payback for trying to have an empire where the sun never sets. happy cruising

Could be because you're a Brit. Payback for trying to have an empire where the sun never sets. happy cruising

LOL!!!

To the OP...it is not the cruise line, it is the credit card companies that levy the fees to exchange your funds into the currency of the cruise line.

ie, GBP must become USD, or CAD must become USD, etc, etc.

In the US, there are a few (very few) CC companies that have no foreign transaction fees. Most CC's charge 3-5% for conversion.

Mariner, is the surcharge you are seeing coming from Princess (ie on your folio) or is it coming from your bank (shows up on your credit card statement)?

If it shows up on your credit card statement that is a fee from your bank, and is their charge to convert dollars (or whatever foreign currency) to pounds. You have the choice onboard to have your card charged in $ or in £. Do you know what instruction you put on your boarding pass? If you mark it as dollars, your bank converts the charge for you at whatever rate you have with them. If you ask Princess to do the conversion, it is usually not at an advantageous rate (they only adjust their conversion on an annual basis!)

In the past, Princess has been notorious for failing to follow passenger instructions, but it had thought that had improved lately.

My TA has never added a surcharge for paying for a cruise by credit card. If yours does, I suggest you find a different TA.

LOL!!!

 

To the OP...it is not the cruise line, it is the credit card companies that levy the fees to exchange your funds into the currency of the cruise line.

 

ie, GBP must become USD, or CAD must become USD, etc, etc.

 

In the US, there are a few (very few) CC companies that have no foreign transaction fees. Most CC's charge 3-5% for conversion.

Yes, it is the CC that is charging the fee not RCI. They charge a "Foreign Transaction" fee. It is no longer called an Exchange Rate.

We live in Panama and use the USD. Because our charges are not made in the country where the card was issued, we pay a "Foreign Transaction" fee. :o Many CC's do charge a "Foreign Transaction" fee. We look for the ones that don't! If you like the CAPITAL they don't charge any fees! ;)

LOL!!!

 

To the OP...it is not the cruise line, it is the credit card companies that levy the fees to exchange your funds into the currency of the cruise line.

 

ie, GBP must become USD, or CAD must become USD, etc, etc.

 

In the US, there are a few (very few) CC companies that have no foreign transaction fees. Most CC's charge 3-5% for conversion.

There are many cards available in the US with no foreign transaction fees. American Express, BofA, Barclay, British Airways, Capital One, Chase, CitiBank, Discover, Hawaiian Airlines, Marriott, Southwest, Wells Fargo, United to name a few. Many don't have annual fees. Neither of my BofA or Citibank cards have foreign transaction or annual fees. And my BofA card even has a chip.

Check out this website for a list:

http://www.nerdwallet.com/blog/top-credit-cards/no-foreign-transaction-fee-credit-card/

No credit card surcharge on most on-board accounts.

Thomson is a major exception, but has some strange attitudes to pricing & invoicing generally.

But are you mixing up two different fees? A credit card commission with a currency conversion commission?

If you allow a non-sterling ship to convert your on-board account to sterling they'll do so with a conversion fee as well as a lousy exchange rate.

As for a charge for using your CC to pay for a cruise ticket, many service industries and especially agencies charge CC fees, just the same as many other industries. This is to cover the card supplier's sales commission, a commission that they've been lumped with by those who choose to use a CC.

So if you don't like the charge, don't use the card.

In all cases other than rogues like Ryanair you've got the option of using your debit card and avoiding that charge, and since reputable T/As are members of ABTA your money is safe when using a DC rather than a CC.

Don't worry about taglo's dumb and pointless comment, I guess he/she is having a bad hair day.;)

JB :)

Deleted. Duplicate post.

I hope this is in the correct place and that the topic has not been covered before. I was wondering if anyone knows why the cruise lines and travel agents add a credit card surcharge if we choose to pay by credit card, for the cruise , or settle the on board account,or buy shore tours and the like. Do they not make enough money out of us without this???Has anyone any ideas how to try to stop this practice ,I personally think this is just taking advantage of the most convenient payment method to make even more money from us?

As has been pointed out, most credit cards charge a foreign transaction fee; I don't know if any banks in the UK offer a card without that fee. But to fuel the flames, I've discovered that many places in New Zealand - particularly those associated with travel, such as airlines and hotels - charge an extra fee for settling your account with a credit card. I had to pay an extra $75 to purchase my Air New Zealand ticket online with a credit card.

As has been pointed out, most credit cards charge a foreign transaction fee; I don't know if any banks in the UK offer a card without that fee. But to fuel the flames, I've discovered that many places in New Zealand - particularly those associated with travel, such as airlines and hotels - charge an extra fee for settling your account with a credit card. I had to pay an extra $75 to purchase my Air New Zealand ticket online with a credit card.

Hi,

Of your two points:

1. Yep, there are various credit cards in the UK which don't charge foreign transaction charges, including Capital; One, Halifax Clarity, Nationwide Flexplus, Post Office.

2. Yep, sounds like NZ is much the same as the UK.

JB :)

Those are not the cruise lines, but the banks that add "exchange fees" to your credit card statement. You pay a certain amount of US dollars for the cruise, and all charges on the cruise are in US dollars. When you get your statement, the charges are in British Pounds, and you have to pay whatever your bank charged for currency exchange on the day that you used your card.

The OP is likely NOT referring to foreign transaction fees.

In the UK it is very common and perfectly legal for travel agents to charge a transaction fee if paying by credit card rather than debit card. Many hotels in the UK (apart from those affiliated with chains common in the US) will also add a fee if you use a credit card rather than put down a cash deposit at check-in for incidental charges. It is less common to find this fee for onboard charges as it should be preferable [to both ship and passenger] to use a revolving charge card, but as post #8 reports there is at least one line that does.

Having a card with no foreign transaction fee does not avoid such a surcharge if it is legal in the issuing country; so US residents have one thing to be thankful for.

As has been pointed out, most credit cards charge a foreign transaction fee

See post #7 for information on cards that do not, at least of those available in the US. There seem to be plenty that a person could use. I have been using one of them for years.

Not sure about Canada, however.

It's also very common in Australia, to the point of being annoying. Originally there were ways to avoid it - EFTPOS, Debit Cards and PayPal didn't incur the surcharge but now airlines seem to be adding the surcharge on everything. As far as I'm concerned it's just another way to sting the customer for more money.

However at least one airline in Australia has been investigated because the surcharge was too high.

I chose credit cards specifically for their no FTF. Surely there have to be CCs in the UK that offer the same.

These are not FTFs. They are charges levied by the retailers allegedly to "recover" the credit card fees they are charged, which should be just a cost of doing business and therefore included in the price.

I find this thread interesting as I'm always reading that residents of the UK, Australia, etc. have all these consumer protections, yet in the US it is illegal to charge a fee when the customer uses a credit card. Whatever.....

I find this thread interesting as I'm always reading that residents of the UK, Australia, etc. have all these consumer protections, yet in the US it is illegal to charge a fee when the customer uses a credit card. Whatever.....

Yup, everything has both pros and cons......'tis the nature of life.

There are many cards available in the US with no foreign transaction fees. American Express, BofA, Barclay, British Airways, Capital One, Chase, CitiBank, Discover, Hawaiian Airlines, Marriott, Southwest, Wells Fargo, United to name a few. Many don't have annual fees. Neither of my BofA or Citibank cards have foreign transaction or annual fees. And my BofA card even has a chip.

 

Check out this website for a list:

 

http://www.nerdwallet.com/blog/top-credit-cards/no-foreign-transaction-fee-credit-card/

Except the OP isn't from the US.....

In the country where I live, we have this thing called money.

We pay cash for most everything.

We are never charged extra fees for this.

In fact, quite often I am offered a discount for paying cash.

You might want to try it.

Except the OP isn't from the US.....

Except the poster I was replying to is from Florida, which I believe is still part of the US. ;)

These are not FTFs. They are charges levied by the retailers allegedly to "recover" the credit card fees they are charged, which should be just a cost of doing business and therefore included in the price.

I agree this charge is not the credit card company but the retailers who basically want you to use cash or debit. (In the UK)

I booked a fight with Ryanair this Summer which is the first time I came across it.

As long as consumers accept it they will continue to do it.

I would never pay with debit to avoid the fee as with a credit card you do have consumer protection.

This nonsense that they are members of ABTA etc is the way they get to do this.

Also the policy of losing the deposit if you cancel a vacation even a year before the trip is ridiculous. Not sure why the Brits put up with it.

I find this thread interesting as I'm always reading that residents of the UK, Australia, etc. have all these consumer protections, yet in the US it is illegal to charge a fee when the customer uses a credit card. Whatever.....

Now that's an interesting point, Tillie.

And it's all in the words that are used, rather than the price that is charged.

My understanding of US law is that when a price is, say, $102 for paying by credit card or $98 for paying by cash

- if it's a $4 surcharge for using a card it's illegal

- but if it's a $4 discount for paying in cash it's not.

Kinda like "one man's terrorist is another man's freedom fighter", it depends on your viewpoint. ;)

In the UK, when credit cards first appeared retailers offered discounts for cash because that avoided cc commissions. The card companies tried to ban the discounts, but the ban was deemed illegal.

Nowadays in the UK the charge is regarded as a legit add-on in some industries, same as it is for some (like govt & utility bills?) in the US.

And the same as cruise line "tips" are regarded as a legit add-on in the US but not in the UK.

In the UK a cc charge has to be disclosed, and it's standard practice to choose between credit & debit according to risk & charges.

BTW, visitors to Britain are unlikely to face a cc charge unless they buy a theatre ticket, its not standard practice in shops, restaurants, gas stations, etc.

In both the US & the UK, businesses will squeeze what they can from the consumer, it's the way of the world. :rolleyes:

JB :)

Edited to add re MaryAnn's post.

- ABTA (and ATOL) membership isn't a nonsense, it's rock-solid consumer protection and has been used on a number of occasions to re-pay and repatriate travellers. Whereas we value the protection of a cc, it's not necessary when dealing with an ABTA or ATOL member so we avoid the cc charge.

- Ryanair (Irish, not British) is the master of bending consumer law.

- yep, cruise / vacation deposits & some other deposits are forfeit from the moment we book. Personally I regard an admin fee as legit because it prevents consumers from wasting everyone's time with spurious bookings, but full loss of thousands of pounds deposit months ahead when the operator has ample opportunity to re-book the accommodation yet retain deposits is pretty disgusting. We put up with it cos we have no choice, and its a reason we arrange insurance when or before we book.

I find this thread interesting as I'm always reading that residents of the UK, Australia, etc. have all these consumer protections, yet in the US it is illegal to charge a fee when the customer uses a credit card. Whatever.....

Our government seems more interested in protecting the merchants than the consumers, in this regard at least. :mad: