Foreign Transaction Fees

[roothy123]

Hi. I recently made a deposit on a cruise in South America, and just got my Master Card statement. We were charge foreign transaction fees. We weren't charged any fees on our previous 4 cruises, so I was surprised to see the charges. Is this typical? Does it depend on the credit card, or what cruise you take, or what?

[A Knitter]

Hi. I recently made a deposit on a cruise in South America, and just got my Master Card statement. We were charge foreign transaction fees. We weren't charged any fees on our previous 4 cruises, so I was surprised to see the charges. Is this typical? Does it depend on the credit card, or what cruise you take, or what?

 

 

There are umpteen threads on this subject. One below and if you do a search "foreign transaction fees" you will find dozens more.

http://boards.cruisecritic.com/showthread.php?t=1200798&highlight=foreign+transaction+fees:)

[JimandStan]

Hi. I recently made a deposit on a cruise in South America, and just got my Master Card statement. We were charge foreign transaction fees. We weren't charged any fees on our previous 4 cruises, so I was surprised to see the charges. Is this typical? Does it depend on the credit card, or what cruise you take, or what?

 

Yes it is typical. You've been posting on these boards for a while, so I'm actually rather surprised that you haven't read about the controversy before.

 

It's a long, convoluted tale, do a search about "foreign transaction fees" if you have free afternoon or two.

 

Suffice it to say that the charge IS dependant on which credit card you used, as well as which bank Oceania has used to process your transaction.

 

Because the whole process is confusing to most civilians and somewhat arbitrary in the way that the fees are charged, Oceania has opted to refund the fees if you bring it to their attention.

 

If you booked through an agent, they can get it refunded to you as either an onboard credit or a money refund (again those options can change with the specific circumstances). If you booked directly with the cruise line, just call Oceania.

[roothy123]

Thankyou, Knitter and JimandStan. Yes, I've been on the boards a bit, but kind of sporadically without following any threads that didn't interest me! Until now, foreign transaction fees for a Florida based company didn't interest me, I'm afraid! At this point, I'm wondering why we were never charged before, but I guess I had some kind of magic credit card the past 4 or 5 years! I'll contact the (new) travel agent and take it from there, and then check out the threads when I get back from my part-time job! Thanks much!

[caroak]

Thanks to CC I knew about this so there was no confusion when we received our statement. Our TA was on vacation so I call Oceania directly and they issued a credit to our MC. What I don't understand is why our TA, or Oceania, did not call this to our attention especially since there was no issue with getting a refund. In good consciousness Oceania should make passengers aware of this possible charge both through the TA's and on their booking information.

[YoHoHo]

There has been some gnashing of teeth over this one. JimandStan answered well and clearly and nicely summed it up. It is what it is and may well be an annoying surprise to those charged but Oceania does apparently make it up to those charged this fee.

 

Like caroakm I am happy that CC has this board so that we can be aware of things like this. As CC members we are fortunate that posters raise these issues and knowledgeable folks reply and all share opinions. The other ##% that do not belong to CC are missing out.

[Caroldoll]

have a foreign transaction fee.

[roothy123]

Yes, I just applied for a free Capital One card. Took about 10 minutes and they'll be sending the card out. It's nice that Oceania will refund the money, but since I'll be spending some money on dinners, a hotel, and train tickets, I decided it would be worthwhile to get a another card.

[hondorner]

... What I don't understand is why our TA, or Oceania, did not call this to our attention especially since there was no issue with getting a refund. In good consciousness Oceania should make passengers aware of this possible charge both through the TA's and on their booking information.

Oceania does cover this possibility in the Frequently Asked Questions section of their web site. Of course, not everyone is as geeky as me and goes looking for that sort of thing. I think that most TA's who are familiar with Oceania are familiar with this issue; I know mine is. Oceania could tell all the TA's and many of them would either forget or not bother to tell their clients.

 

Besides Capital One, no American Express card charges this fee, and the Gold Visa issued by Schwab Bank (owned by Charles Schwab brokerage) does not charge this fee, and pays a 2% dividend on all charges. It's worth looking into Schwab Bank; they also issue a check card (debit card) which carries no ATM fees anywhere in the world. If a fee is charged, Schwab refunds it automatically. That's really helpful for getting cash from any ATM when traveling.

[DaveFr]

Thanks to CC I knew about this so there was no confusion when we received our statement. Our TA was on vacation so I call Oceania directly and they issued a credit to our MC. What I don't understand is why our TA, or Oceania, did not call this to our attention especially since there was no issue with getting a refund. In good consciousness Oceania should make passengers aware of this possible charge both through the TA's and on their booking information.

It is somewhat buried but there is a FAQ that mentions foreign transaction fees:

 

"Q: What payment types do you accept?A: American Express, Mastercard, Visa, travel agency checks and personal checks are accepted for deposits and full payments. For your convenience, your Final Payment may be automatically charged to the credit card used to make the initial deposit. Oceania Cruises accepts no responsibility for credit card foreign currency/transaction processing fees independently assessed by issuing banks. None of these fees separately charged by the issuing banks accrues to the benefit of Oceania Cruises. Third party credit card charges can only be accepted when accompanied by valid authorization to charge from the relevant card owner." (http://www.oceaniacruises.com/guestservices/faq.aspx?Cat=Pricing%20and%20Payments)Dave

[DaveFr]

Oceania does cover this possibility in the Frequently Asked Questions section of their web site. Of course, not everyone is as geeky as me and goes looking for that sort of thing. I think that most TA's who are familiar with Oceania are familiar with this issue; I know mine is. Oceania could tell all the TA's and many of them would either forget or not bother to tell their clients.

Great minds think alike and at the same time. :D

 

Dave

[YoHoHo]

...

Besides Capital One, no American Express card charges this fee, and the Gold Visa issued by Schwab Bank (owned by Charles Schwab brokerage) does not charge this fee, and pays a 2% dividend on all charges.

...

 

By chance I was looking at American Express web site card comparison last week to see if it was worthwhile for me to switch. I saw that some cards do carry such a transaction fee. For example the (US) Platinum card with a $450 annual fee it states:

• Foreign Transaction
  2.7% of each transaction after conversion to US dollars
  

[1985rz1]

By chance I was looking at American Express web site card comparison last week to see if it was worthwhile for me to switch. I saw that some cards do carry such a transaction fee. For example the (US) Platinum card with a $450 annual fee it states:

• Foreign Transaction
  

• 2.7% of each transaction after conversion to US dollars
  

 

I think VISA and Mastercard charge a 1% fee on all foreign transactions, which banks pass along to card holders and to which individual banks can add additional transaction fees. The most notable exception is CapitalOne which absorbs the 1% fee somehow and does not add any fee of its own. I don't know how Charles Schwab brokerage accounts treat the 1%.

 

But these VISA and Mastercard fees, along with the transaction fees charged by American Express fees and individual bank add-on fees have been restricted to foreign transactions in the past...i.e. for the conversion of foreign currency to US $. However, some banks now charge the same transaction fee on US $ transactions if the collecting company's bank (i.e. Oceania's bank) is is foreign bank, even thought there is no foreign currency conversion. I think this latter fee is the one that is new and has been the one causing the fees added on to on Oceania's charges.

 

See http://www.creditcards.com/credit-card-news/foreign-transaction-conversion-fees-1276.php

[YoHoHo]

Glad you clarified - I was mixing these charges up.

Thanks for the informative link. Maybe the best advice is the almost last line on the page: "Fees, as always, are subject to change."

[hondorner]

By chance I was looking at American Express web site card comparison last week to see if it was worthwhile for me to switch. I saw that some cards do carry such a transaction fee. For example the (US) Platinum card with a $450 annual fee it states:

• Foreign Transaction
  

• 2.7% of each transaction after conversion to US dollars
  

I started to answer this morning, but got interrupted until now, and see that 1985rz1 covered the subject. I was about to say that the American Express fee you mentioned is called a foreign transaction fee, but it is actually a currency conversion fee. The other banks may or may not charge a currency conversion fee in addition to their foreign transaction fee, which is imposed because the transaction touched a foreign bank, even though it remains in US Dollars and does not cost the bank an extra penny of expense. It is purely a bogus fee for the benefit of Visa and MasterCard (1% of the fee) and the issuing bank (an addition 1% to 4% of the fee), and neither Oceania or the bank in Ireland ever see a penny of it.

 

Obviously, even though we are not privy to the details of big money global finance, Oceania derives enough benefit from their relationship with the Irish bank to be worth giving money to passengers that they never received. Remember, they cannot "refund" what they never got.

[Rickey 88]

Words of wisdom from Horndorner.

 

Now if everyone would remember his words, perhaps the seemingly never ending posts on this misunderstood subject would end......

[roothy123]

Oh, now Rickey, you know we all like to yak, so most likely the thread will NOT yet end! However, you don't have to keep following it! I, for one, have been enlightened, have applied for a Capital One card, and gotten my TA to have Oceania reimburse me for the hated fees, so I'm happy! Cruisecritic has helped me once again - thanks!

[Rickey 88]

Oh Roothy, I just like to gripe!!

 

Actually, I do have reason to follow this thread, having spent years in credit card banking. Now retired, I'm happy to watch from the sidelines - but I do take exception to those who somehow believe that Oceania is responsible.

 

Happy Cruising!!

[Benita]

Rickey - I think Oceania is responsible, because it is reasonable to expect that a company based in this country will use a bank based in the same country to accept the credit card payments. Oceania has a right to use whatever bank they want, wherever they want, but their customers have a right to know about this so they can pay accordingly. Oceania obviously agrees, because they have been refunding the foreign bank fees. They are doing the right thing, IMHO in accepting responsibility. Once I found out about it (thank you Cruise Critic) I got a Capital One card so neither Oceania nor I would be out the fees.

[tatecity]

Hi. I recently made a deposit on a cruise in South America, and just got my Master Card statement. We were charge foreign transaction fees. We weren't charged any fees on our previous 4 cruises, so I was surprised to see the charges. Is this typical? Does it depend on the credit card, or what cruise you take, or what?

 

Hello. I too have been charged foreign transaction fees when I have paid Oceania using my Master Card. Each time I have called Oceania and the charges were credited back. Hope this helps.

[DOJO466]

Rickey - I think Oceania is responsible, because it is reasonable to expect that a company based in this country will use a bank based in the same country to accept the credit card payments. Oceania has a right to use whatever bank they want, wherever they want, but their customers have a right to know about this so they can pay accordingly. Oceania obviously agrees, because they have been refunding the foreign bank fees. They are doing the right thing, IMHO in accepting responsibility. Once I found out about it (thank you Cruise Critic) I got a Capital One card so neither Oceania nor I would be out the fees.

I disagree with you Benita...no responsibility for"O". This has gone back and forth forever. I just took advice from fellow CC'rs (Don..thank you) and now have a Schwab card for ATM's abroad (and .75% for what it is worth gaining interest until I spend overseas) and have always had a Cap One which charges Nothing!! "O" has nothing to do with this. It is their choice to bank wherever. Do you realize that their payroll is not based in the US? Why should they bank here? Make your compliants to your bank. I pay NOTHING in any fees...nor should you if you practice due diligence.

[Benita]

I disagree with you Benita...no responsibility for"O". This has gone back and forth forever. I just took advice from fellow CC'rs (Don..thank you) and now have a Schwab card for ATM's abroad (and .75% for what it is worth gaining interest until I spend overseas) and have always had a Cap One which charges Nothing!! "O" has nothing to do with this. It is their choice to bank wherever. Do you realize that their payroll is not based in the US? Why should they bank here? Make your compliants to your bank. I pay NOTHING in any fees...nor should you if you practice due diligence.

 

This time,please read my comment. I agreed that Oceania has the right to bank anywhere. I also pointed out that their customers have a right to know about the fees before getting a nasty surprise on their credit card bill. I would not have know about this had I not been a reader of cruise critic. It is an unusual enough happening that there are multiple threads about this issue, even on this board and only a fraction of passengers ever even heard of cruise critic.