Foreign Transaction Fee

[phillymaps]

The foreign transaction fee is back! Last week I returned from a cruise and my credit card company placed a foreign transaction fee on my ship-board charges. My travel agent called Oceania and replied that "according to the reservations agent that I spoke to with the cruise line they are no longer refunding the FTF associated with onboard ship accounts." Apparently there is no fee on cruise fees, but there will be a FTF on any charges made aboard ship. I suggest we write to Frank Del Rio and tell him we are not happy with this change.

[A Knitter]

We just returned from the Matina and our credit card charges match the onboard account charges. We just checked our Chase and all is well, at least so far.

[orchestrapal]

The foreign transaction fee is back! Last week I returned from a cruise and my credit card company placed a foreign transaction fee on my ship-board charges. My travel agent called Oceania and replied that "according to the reservations agent that I spoke to with the cruise line they are no longer refunding the FTF associated with onboard ship accounts." Apparently there is no fee on cruise fees, but there will be a FTF on any charges made aboard ship. I suggest we write to Frank Del Rio and tell him we are not happy with this change.

 

When you finish your letter get yourself a credit card that does not charge a foreign transaction fee. There have been many discussions of this which you can search up at the top of the page.

We love our chase Sapphire Cards and there are many others.Good luck.

[PirateShark]

Another option would be to purchase OBC (via the Bon Voyage page) in an approximate amount you think you will spend prior to leaving for your cruise. I've always purchased enough OBC to cover hotel charges and estimated incidentals - if you go over, the charge, if any, is proportionally smaller.

Edited December 17, 2013 by PirateShark

[kiawahdon]

For a cruise line whose only offices are in the USA to charge a foreign transaction fee on ANY purchases, is almost fraudulent. Name one other cruise line with US offices that does this? Name one other similarly situated company that does this? Wonder how long Amazon would exist doing this? It is a hidden fee that is not in keeping with Oceania's reputation. Is the consumer angst worth it, FDR?

[mbpaul]

How are we to know if our card will have a foreign transaction fee? The credit cards are issued in the USA, we are in the USA and Oceania is in the USA. Not our fault; Oceania's fault. The only reason for a foreign transaction fee is because Oceania uses a foreign bank to do the transaction. Uncalled for, not ethical, just not right.

[kiawahdon]

Just to carry this discussion one step further, the contract of carriage says all charges are to be paid in US dollars:"Any and all payments made by you to us shall be made in the currency of the United States of America or other currency acceptable to us ."

 

Maybe someone smarter than me can explain if I am paying US dollars, how I incur a foreign transaction fee. Seems to me the ACTIONS of O create the fee, not me if I pay dollars.

[Host Jazzbeau]

This may be a shock, but did you notice that Oceania ships are not registered in the US?

 

To avoid foreign transaction fees, get a free Capital One Venture card. There are also several other cards with no such fees (Amex Platinum, Chase Sapphire, etc.) but they all have annual fees. [We have actually found that the Amex Platinum pays for its annual fee because of the travel discounts we get with it, but that may not work for everyone.]

[ORV]

How are we to know if our card will have a foreign transaction fee? The credit cards are issued in the USA, we are in the USA and Oceania is in the USA. Not our fault; Oceania's fault. The only reason for a foreign transaction fee is because Oceania uses a foreign bank to do the transaction. Uncalled for, not ethical, just not right.

 

Call your credit card provider and ask them if them charge them.

[Caroldoll]

It is not a ship thing. It is actually a bank thing. Like others suggested, you need to get a credit card that does not charge a fee. My Amex Centurion does not and evidently Platinum does not. I have two Capital ones who do not and evidently Chase Sapphire. I do know that they use a foreign bank. That is the reason.

[kiawahdon]

This may be a shock, but did you notice that Oceania ships are not registered in the US?

QUOTE]

 

Ship registration is not the issue. The issue is O converting my Dollars into a foreign currency when they clear the credit charges through a foreign bank. They do this to incur a lower merchant fee than utilizing a US bank to clear the cards. O says in their materials that none of the foreign transaction fees accrue to their benefit. A half-truth due to the lower merchant fees.

Notice that they clear your cruise booking through a US bank as people would go ballistic if foreign exchange fees were imposed. My guess is that, with ship board charges, they figure you are less likely to complain. Plus, they now have all your cruise fare in hand- who cares if you bitch?

[edgee]

Just to carry this discussion one step further, the contract of carriage says all charges are to be paid in US dollars:"Any and all payments made by you to us shall be made in the currency of the United States of America or other currency acceptable to us ."

 

Maybe someone smarter than me can explain if I am paying US dollars, how I incur a foreign transaction fee. Seems to me the ACTIONS of O create the fee, not me if I pay dollars.

 

Paying in U.S. Dollars does not matter. Issue is whether charges are posted as hapening outside of the u.s.

[kiawahdon]

Paying in U.S. Dollars does not matter. Issue is whether charges are posted as hapening outside of the u.s.

 

I beg to differ. Location of the posting is irrelevant- it's what bank O CHOOSES to use to clear the credit cards-foreign or domestic. Why have I never had these charges on numerous European cruises with other lines? More specifically, neither Azaamara (RCCL family) and Seabourn (Carnival family) do not have these charges. Again, location or ship's registry are irrelevant.

[sitraveler]

AMEX, Capital 1, & Chase-United cards don't charge the fee.

 

Any others?

[Hawaiidan]

AMEX, Capital 1, & Chase-United cards don't charge the fee.

 

Any others?

 

Instead of arguing over this and that, go look in the mirror. The blame lies squarely with you for not planning in advance and doing the homework necessary as a traveler..... Its not rocket science but mainstream common knowledge.

 

It was your choices decisions as an international traveler that resulted in the charge.

 

Anyone traveling anywhere should be aware of all potential costs fees they are likely to encounter. If you don't plan then there will be many surprises waiting, an not all of them good as you found out.

 

Hope you learned from this.....

[Travelcat2]

Instead of arguing over this and that, go look in the mirror. The blame lies squarely with you for not planning in advance and doing the homework necessary as a traveler..... Its not rocket science but mainstream common knowledge.

 

It was your choices decisions as an international traveler that resulted in the charge.

 

Anyone traveling anywhere should be aware of all potential costs fees they are likely to encounter. If you don't plan then there will be many surprises waiting, an not all of them good as you found out.

 

Hope you learned from this.....

 

 

Have to disagree with you a bit on this one. PCH did away with foreign transaction fees some time ago. I cannot think of a reason to check to see if their changed their mind. IMO, it would have been up to PCH to advise their passengers of this change.

[Offroad911]

I use American Express Platinum EXCLUSIVELY for all travel related charges unless not accepted by the merchant. I get OBC using it, I get Airline credits using it so I get MORE than the annual fee back as credits every year along with Membership Rewards, concierge services, travel related services and other services that make the AMEX Platinum worth paying the fee, AND NEVER a foreign transaction fee, EVER. :)

Edited December 17, 2013 by Offroad911

[Host Jazzbeau]

Whoa, Dan - sitraveler was just trying to help. I think you meant to direct your post to someone else.

 

To answer sitraveler's question: there are several websites that track credit cards based on different perks. Here's one that does a good job for no-foreign-transaction-fees:

 

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

[LHT28]

I have no dog in this fight (yet)

 

I think the big picture is

You are charged in USD & expect to be billed in USD but do not expect the cruiseline to be using an offshore bank that your CC company mayl be charging you a FTF for the transaction

 

If in the cruise documents it said they use an offshore bank & your CC may charge you a FTF you could be prepared & use a CC without the fees

 

I know the cruise lines have a right to bank where & with whom they choose ..they are in the business to maximize their bottom line

Full disclosure would at least help passengers be informed of the extra fees you might be hit with

 

Just my opinion

Here in Canada our FTF are hidden in the exchange rates charged by the CC when converting your charges

You need to read the fine print in your contract to find the amount they charge you usually 2-4%

 

Lyn

[rallydave]

Have to disagree with you a bit on this one. PCH did away with foreign transaction fees some time ago. I cannot think of a reason to check to see if their changed their mind. IMO, it would have been up to PCH to advise their passengers of this change.

 

tc, hope you are sitting down while reading this. You are 100% correct and it is PCH's fault for not advising people that their transactions in US dollars would be converted at a foreign bank and that there would be transaction charges so that the customer was aware of this and could then choose wisely which card to use or pay in cash.

 

Had they simply informed people up front about the transactions being thru a foreign bank and that foreign transactions charges would occur, no problem since no different than purchasing an item overseas with a credit card and would be up to the passenger to use a no fee card or knowingly pay the charges with a different card.

 

It's simply another case of PCH making extra profits by hiding this fee while reaping the rewards of credit card transactions at a lower cost to PCH.

 

Really not much different than how the marketing people come up with all these special discounted fares but, fail to mention that they are really the same price with some of the includes missing therefore apples vs. oranges.

[Hawaiidan]

Have to disagree with you a bit on this one. PCH did away with foreign transaction fees some time ago. I cannot think of a reason to check to see if their changed their mind. IMO, it would have been up to PCH to advise their passengers of this change.

 

 

 

My point is that we have responsibilities . We only are victimized by our own failure to meet those responsibilities.

Knowing the exchange rate, conversion commission, visa req, medical requirements,TSA rules, Passport, what credit cards to use, how much cash if any, customs regulations, ATM rtes, etc. is all part of travel incumbent on the traveler.

 

With international travel anywhere and even domestic to me is seems pure logic to prepare for any and all perceived problems and plan for them. and in the very beginning start with an a card that covers ALL bases.

 

If your PCH card did not send out a notice with your annual renewal that's against the law is it a foreign bank?. My VISA and MC all send me annual terms... like this year they vastly increased travel insurance coverage. I read them each year. I would quit using PCH and cut it up and switch to A VISA or AMEX

[YoHoHo]

Here in Canada our FTF are hidden in the exchange rates charged by the CC when converting your charges

You need to read the fine print in your contract to find the amount they charge you usually 2-4%

 

Lyn

Not necessarily, Lyn. While a CC might lump all the fees into one, my VanCity Visa does not charge a foreign transaction fee - just the (quite favourable) exchange rate. I get constant offers from TD on their 'Travel' Visa that ironically has a foreign transaction fee - can't imagine why I would pay to have such a card that charges such a fee for 'travel'.

 

I agree about reading the fine print but just try to find if TD card has that fee on the on-line or print marketing materials - I could not. Other (more expected) fess are listed but not that one. I''d have to get the card to get the Contract and then read all the fine print to find out what I have signed up for!

 

That they, and others, obfuscate this fee leads me to believe they know consumers would object (until too late)

[LHT28]

If your PCH card did not send out a notice with your annual renewal that's against the law is it a foreign bank?.

 

PCH is not a CC company

PCH = Prestige Cruise holdings if you had done your research you would know they are the owners of Oceania & Regent cruise line

 

http://www.oceaniacruises.com/corporate/companyprofile.aspx

Edited December 17, 2013 by LHT28

[LHT28]

Not necessarily, Lyn. While a CC might lump all the fees into one, my VanCity Visa does not charge a foreign transaction fee

 

I stand corrected ..not ALL Canadian CC charge the FTF

 

But you DO need to read the contract to find out if your does or ask the supplier ;)

 

TD card holder agreement FTF

http://td.intelliresponse.com/accounts/results.jsp?question=How+is+foreign+currency+exchange+calculated+when+I+use+my+TD+Credit+Card+abroad?&interfaceID=6&id=308&source=4&userOrigin=https://www.tdcanadatrust.com/products-services/banking/credit-cards/view-credit-cards/view-credit-cards.jsp?filterType=0&cardType=personal

 

I have heard some Credit Union CC do not charge the fee

 

YMMV

 

Lyn

Edited December 17, 2013 by LHT28

[Christine Frances]

Not necessarily, Lyn. While a CC might lump all the fees into one, my VanCity Visa does not charge a foreign transaction fee - just the (quite favourable) exchange rate. I get constant offers from TD on their 'Travel' Visa that ironically has a foreign transaction fee - can't imagine why I would pay to have such a card that charges such a fee for 'travel'.

 

I agree about reading the fine print but just try to find if TD card has that fee on the on-line or print marketing materials - I could not. Other (more expected) fess are listed but not that one. I''d have to get the card to get the Contract and then read all the fine print to find out what I have signed up for!

 

That they, and others, obfuscate this fee leads me to believe they know consumers would object (until too late)

 

I think Van City charges a 2% Foreign Transaction Fee https://www.vancity.com/SharedContent/Revamp/2012-VisaCardholderAgreement.pdf#page=1&zoom=auto,23,891