Bank Credit Card Foreign Transaction Fee

[JonconOH]

I just received my credit card statement. It appears that my deposit to Oceania was posted by my bank through Oceania's bank in Ireland, thus adding an additional 3% to the bill. Oceania has reversed this charge. However, I checked with other banks and they, too, will charge your card through a foreign bank so they can collect another 3%. American Express does not do this.

[ladysail2]

Here in Canada, we usually pay a 2.5% commission on top of the converted amount to the bank for being so kind as to process a foreign transaction..... I suppose Canada does not have to process transactions in foreign currencies....so they're doing us a favour...:rolleyes:

 

For example...my recent $750 deposit to Oceania converted from US dollars to Canada dollars on Jan. 14 to become a payment of $769.58....then they add on their 'commission' to do the conversion.....which a machine does...and I owe my cc $798.49....

Nice pay if you can get it!! I'm not saying that my Canadian cc used the Bank of Canada exchange rates.....but one cannot get a breakdown of the fees. I've asked...and all I'm told is......'that's what the computer program does'.

I'm not sure if that includes a 3% commission to the Bank in Ireland or not!!!! It wouldn't surprise me!!!!

 

If I lived near the border, I would get a US credit card, then just go over to the US bank and pay the bill....but we're about an hour's drive to the border, have to pay 2 bridge tolls....and we can't do that for $30 when one considers the price of gas.

 

It's the cost of cruising, and I'm not going to stop cruising!!! :D

[Earl Rosebery]

 

If I lived near the border, I would get a US credit card, then just go over to the US bank and pay the bill....but we're about an hour's drive to the border, have to pay 2 bridge tolls....and we can't do that for $30 when one considers the price of gas.

 

:D

 

The big 5 Canadian banks all offer US dollar accounts and credit cards. For example TD has what they call their 'borderless' plan for 5$/month (waived with a minimum balance.) This includes a US dollar credit card. I would take it up with your bank. By changing larger amounts you get a much better rate. The spread can be as low as 1%

[ladysail2]

The big 5 Canadian banks all offer US dollar accounts and credit cards. For example TD has what they call their 'borderless' plan for 5$/month (waived with a minimum balance.) This includes a US dollar credit card. I would take it up with your bank. By changing larger amounts you get a much better rate. The spread can be as low as 1%

 

Thanks for the information...I'll look into it.

[LHT28]

. For example TD has what they call their 'borderless' plan for 5$/month (waived with a minimum balance.) This includes a US dollar credit card. I would take it up with your bank.

Have you used TD Visa for an Oceania payment?

Do they charge the foreign Transaction fee?

 

Lyn

[LHT28]

Here in Canada, we usually pay a 2.5% commission on top of the converted amount to the bank for being so kind as to process a foreign transaction..... I suppose Canada does not have to process transactions in foreign currencies....so they're doing us a favour...:rolleyes:

 

The 2.5% is the foreign transaction fee.

They do not charge any other fee at least with RBC.

 

Lyn

[nvgal]

I just received my credit card statement. It appears that my deposit to Oceania was posted by my bank through Oceania's bank in Ireland, thus adding an additional 3% to the bill. Oceania has reversed this charge. However, I checked with other banks and they, too, will charge your card through a foreign bank so they can collect another 3%. American Express does not do this.

 

Oceania has always refunded my transaction fee charge. Fax them your credit card statement and they will post a credit. We pay enough in extra charges, we don't need one more.

[StanandJim]

Oceania has always refunded my transaction fee charge. Fax them your credit card statement and they will post a credit. We pay enough in extra charges, we don't need one more.

 

Please forgive this correction NVGAL, but past experience has shown that this distincton MUST be made, or all kinds of hell will break loose on the boards:

 

Oceania does not ASSESS the transaction fee, therefore, they are not in a position to REFUND it.

 

What Oceania does is to credit passengers who were charged the fee with an equal amount in on board credits, as a courtesy.

 

The fee itself remains in the coffers of your BANK.

[LuAnn]

Please forgive this correction NVGAL, but past experience has shown that this distincton MUST be made, or all kinds of hell will break loose on the boards:

 

Oceania does not ASSESS the transaction fee, therefore, they are not in a position to REFUND it.

 

What Oceania does is to credit passengers who were charged the fee with an equal amount in on board credits, as a courtesy.

 

The fee itself remains in the coffers of your BANK.

 

 

Our final deposit was made last month and we were charged the 3% fee...we faxed our credit card stmt to our TA..she sent it on to Oceania, and Oceania ran through a credit on our credit card account...FYI LuAnn

[susiesan]

My deposit made in December on an AmEx card did not add a foreign transaction fee.

 

Hasn't this been a problem with Oceania and their bank for years? I recall this discussion 4 years ago when I took my first O cruise.

[Benita]

Capital One still does not charge a foreign bank fee or a foreign conversion fee. I keep it for traveling out of the country and also to pay Oceania. They seem to be the only American based cruise line that we have found that uses a foreign bank, so the Capital One card comes in handy for their cruises.

[hondorner]

Our final deposit was made last month and we were charged the 3% fee...we faxed our credit card stmt to our TA..she sent it on to Oceania, and Oceania ran through a credit on our credit card account...FYI LuAnn

I am certain this is exactly what happened, but what Jim was explaining is that it is NOT a refund -- because Oceania never had the funds in the first place, they are not refunding it. The amount they credited to your credit card account was from the general funds of Oceania, and is essentially a gift, given to keep you happy with them.

 

The foreign transaction fee that is charged by many banks is a bogus fee that goes directly into the coffers of the bank that issued your credit card and to the coffers of VISA. None of it goes to Oceania or to the bank in Ireland to which Oceania makes its deposits. It is a bogus fee because there is no additional cost involved with a transaction with a bank outside of the USA when the funds are not converted into some other currency.

 

It is up to the bank issuing the credit card whether they assess the fee or not. VISA assesses a 1% fee. Some banks assess their own fee in addition, adding from 1% to 4% to the VISA fee. Some banks simply pass the 1% fee through to the client. Some banks absorb the 1% fee and charge their clients nothing. AmEx has never followed VISA in assessing the fee and if any AmEx cardholders are assessed the fee, it all goes directly to the issuing bank.

 

Why is this important? Because Oceania (and Regent) are frequently accused of trying to skin their customers out of a little extra money when, in fact, they lose money every time they issue a rebate.

[Earl Rosebery]

Have you used TD Visa for an Oceania payment?

Do they charge the foreign Transaction fee?

 

Lyn

 

When we paid our Oceania fee in June, it was with RBC Visa and not a US dollar card. The 'spread' or difference or profit for the bank between what they charged and the bank of Canada noon rate for that day was 2.4%. There is always a spread. You can call it a fee if you wish. The spread varies with the amount and type of transaction. Larger amounts are about 1% if they are electronic; for example for a US dollar wire transfer. VISA is typically 2.5%. Cash at the airport can be anything they want but 5% would not be unusual. Clear as mud?

[hondorner]

When we paid our Oceania fee in June, it was with RBC Visa and not a US dollar card. The 'spread' or difference or profit for the bank between what they charged and the bank of Canada noon rate for that day was 2.4%. There is always a spread. You can call it a fee if you wish. The spread varies with the amount and type of transaction. Larger amounts are about 1% if they are electronic; for example for a US dollar wire transfer. VISA is typically 2.5%. Cash at the airport can be anything they want but 5% would not be unusual. Clear as mud?

What you were charged was a currency conversion charge, not a foreign transaction fee. The transaction fee is charged even when the amount is not changed from one currency to another, and is charge in addition to the currency conversion fee when the amount is converted from one currency to another.

[LHT28]

When we paid our Oceania fee in June, it was with RBC Visa and not a US dollar card.

Thanks I am aware of the RBC VISA charges but was interested in the TD USD VISA if any charges were made.

we have both but have not used the TD card for Oceania YET;)

 

lyn

[Rickey 88]

I am certain this is exactly what happened, but what Jim was explaining is that it is NOT a refund -- because Oceania never had the funds in the first place, they are not refunding it. The amount they credited to your credit card account was from the general funds of Oceania, and is essentially a gift, given to keep you happy with them.

 

The foreign transaction fee that is charged by many banks is a bogus fee that goes directly into the coffers of the bank that issued your credit card and to the coffers of VISA. None of it goes to Oceania or to the bank in Ireland to which Oceania makes its deposits. It is a bogus fee because there is no additional cost involved with a transaction with a bank outside of the USA when the funds are not converted into some other currency.

 

It is up to the bank issuing the credit card whether they assess the fee or not. VISA assesses a 1% fee. Some banks assess their own fee in addition, adding from 1% to 4% to the VISA fee. Some banks simply pass the 1% fee through to the client. Some banks absorb the 1% fee and charge their clients nothing. AmEx has never followed VISA in assessing the fee and if any AmEx cardholders are assessed the fee, it all goes directly to the issuing bank.

 

Why is this important? Because Oceania (and Regent) are frequently accused of trying to skin their customers out of a little extra money when, in fact, they lose money every time they issue a rebate.

 

Ahh - the voice of sanity and reason!!

To all who have posted - this subject has been flogged almost to death for years! The bottom line is simply to find a bank card that does NOT assess this ridiculous fee on Foreign Transactions (not a Foreign Currency Charge, which is another subject). Use that card - and let the matter rest. Thanks!!

[Earl Rosebery]

Thanks I am aware of the RBC VISA charges but was interested in the TD USD VISA if any charges were made.

we have both but have not used the TD card for Oceania YET;)

 

lyn

 

I used my TD US Dollar card to pay a large bill for a Hawaii condo rental. There were no fees or conversion charges. I pay my US credit card from my TD US dollar account. When I need to top up my US dollar account, the currency conversion cost or spread is about 1% more than the bank of Canada rate at the same time. The only downside is that there are no frequent flyer pointd attached.

[LuAnn]

Ahh - the voice of sanity and reason!!

 

To all who have posted - this subject has been flogged almost to death for years! The bottom line is simply to find a bank card that does NOT assess this ridiculous fee on Foreign Transactions (not a Foreign Currency Charge, which is another subject). Use that card - and let the matter rest. Thanks!!

 

It's just that I use 1 card most of the time to gather miles!! I do use the Capital One card when we are "overseas" (such a neat term!) but only then. I have participated in threads about this in the past...as I'm sure you have as well...I just wanted to point out that I had not received a SBC from Oceania...but an actual credit to my credit card bill...that was my FYI! I must assume that Oceania feels it is "worth it" to continue to use this bank in Ireland...considering all the hassles that it seems to create...for their passengers, TAs and themselves! LuAnn (and thanks Don...for your valuable, detailed explanation!) :)

[LHT28]

I used my TD US Dollar card to pay a large bill for a Hawaii condo rental.

Did the condo rental use a bank in Ireland?

we have used our TD USD visa in the USA without problem so far the issue is that Oceania uses a off shore bank & some cc seem to tack on the Foreign Transaction fee even though it is in USD.The Canadian Cards hide the fee in the conversion for foreign currency (see cardholder agreements for %)

 

I guess we will find out at final payment time.

 

Lyn

[JonconOH]

Have you used TD Visa for an Oceania payment?

Do they charge the foreign Transaction fee?

 

Lyn

I have not used TD Visa for Oceania. I plan to use my Visa Card for another payment and will see if there is a Foreign Transaction Fee.

[JonconOH]

I realize that this fee (my first in 20 cruises) is something the banks charge to beef their bottom line..and the cruise company does not receive this fee. The "refund" would actually be a credit from the cruiseline's own account for the fees they never received. My gripe is with the BANKS, not Oceania. So far, American Express does not charge this fee nor does Capitol One. Looks like I will be changing credit card companies.

[Benita]

I guess Oceania gets enough of a benefit from using a bank in Ireland to make it worth the credit they give to the customer. They could just say "tough luck" to the passenger, but as they are aware of the fees charged by the credit card company, that would create bad will. They could alert the travel agents to warn the customer about the fees and suggest to the passenger that they use a card such as Capital One to avoid the fees. That would save Oceania the money credited to the passenger. Of course, they could use a bank in the US and that would allow everybody in the US to use the credit card of their choice, which would be the best for most passengers who are trying to accumulate points on their card. I'm sure it boils down to a dollars and cents calculation and Oceania has figured out what works the best.

[LHT28]

I have not used TD Visa for Oceania. I plan to use my Visa Card for another payment and will see if there is a Foreign Transaction Fee.

Do you have Canadian card from TD?

[newcruisers04]

Do you have Canadian card from TD?

 

Do they not charge the transaction or whatever they call it fee? I know Capital One in Canada does...currency exchange fee to US dollars and then 3% on top of that for foreign..

if there is a card in Canada that doesnt charge, I would be interested in finding out. We ended up going across the bridge to Michigan and opening an American bank account just for travelling.

[LHT28]

Do they not charge the transaction or whatever they call it fee?.

Lori

We have a TD USD VISA issued in Canada not the same as the USA issued card.

 

We pay in USD so far we have only used it in hotels & shopping in USA, purchases & payments are in USD so there is no FTF ....

I will have to wait to see if there is a FTF for Oceania as they bank off-shore.

 

I was hoping someone in Canada had the same card since it was mentioned here & used it with Oceania then I would know if there is a FTF.

Keep you posted ..final payment is in April;)

 

Lyn