Foreign Transaction Fee!!!

[susiesan]

Really? We've never been able to have a bill at the end of a cruise less than that, and usually much more than that! It's pretty easy to do when you consider, excursions, drinks, and other items purchased on board.

 

I'm one of those people who pays for my cruise and then doesn't spend hardly any more once I'm on board. I have prepaid gratuities and a small shipboard credit from my TA. I bring on my own liquor. I never do ship shore excursions, gamble, or go to the spa. I don't ever buy anything from the shops on board the ship. Last year, on a 14 day AZ cruise in the Med my onboard charges total was $4.65. I expect my 12 day Caribbean cruise in Feb. will have an onboard charge total of less than $10.

[mike52]

My TA has always warned me when booking.

 

 

 

Our's has been in the business for 20 yrs and never heard of it...?

[A Knitter]

I'm one of those people who pays for my cruise and then doesn't spend hardly any more once I'm on board. I have prepaid gratuities and a small shipboard credit from my TA. I bring on my own liquor. I never do ship shore excursions, gamble, or go to the spa. I don't ever buy anything from the shops on board the ship. Last year, on a 14 day AZ cruise in the Med my onboard charges total was $4.65. I expect my 12 day Caribbean cruise in Feb. will have an onboard charge total of less than $10.

 

:eek:You never purchase wine with dinner or any other time during the cruise? Forget some incidental and have to purchase at the onboard boutique? I guess my whole point is if indeed you did not spend the $900.00 onboard credit which wasn't a gift from your TA, you would get a refund of the balance at the end of the cruise. If an OBC from your TA isn't used up you do not get a refund.

[douganswerphone]

Thanks to all of you for your replies.

 

When I put down the deposit last June, there was no foreign transaction fee charged. And the reason that this one is so high is that it is an expensive trip. It's the 45-day cruise on Nautica from Hong Kong to Athens in a PH2.

 

This turns out to be a 3% fee. I never even thought to check out the threads that talk about "foreign" fees because I didn't think it applied to me. It is an American company, after all.

 

I know that it's not Oceania's fault but a prominent mention on their website certainly would have helped.

 

But now, thanks to all of you, I will call Oceania (we're booked directly) and try at least for an OBC. We certainly will have a larger bill than that after all that time.

 

Thanks all.

 

In a manner of speaking, it IS Oceania's fault. They've chosen to use an Irish bank for their credit card handling, and the Foreign Transaction fee has been an issue for years, with hundreds if not thousands of annoyed guests. If you complain about it, O will refund the money, but I'm sure Many people just pay it and forget it.

 

At a guess, O does this so that THEY don't have to pay currency conversion fees on their receipts. Much if not most of their finance charges and operating costs are incurred in Europe and thus are paid in Euros (the Irish currency is also the Euro). I'd guess O saves a couple million a year in currency conversion charges, at the cost of irritating a sizeable number of guests. Apparently O feels the savings are worth the substantial cost in customer goodwill.

 

Considering how customer-friendly they are in most respects, it puzzles me that they continue to go this route. We're devoted O cruisers, but have run up against this issue ourselves several times.

[hondorner]

Even if the money does not go to Oceania they should clearly state both on their website AND on the invoice that they use an Irish bank that will charge a 3% surcharge and this will alter the price of one's cruise. It's unfair to not let people know this when they are planning the budget for their cruise.

The Irish bank does not charge the fee. It is purely a profitable graft started by VISA and copied by MasterCard and Discover.

[hondorner]

[/u]

 

If Oceania and Regent did not use a bank outside of the U.S....We would not be having this discussion.

American Express now charges a 2.7% foreign transaction fee as does United Mileage Plus Visa which charges a 3% foreign transaction fee.

Just spoke to Regent and Regent will credit the foreign transaction fee back to your credit card.

American Express does not charge a foreign transactio9n fee as discussed here. AmEx charges a 2.7% Currency Conversion Fee, not a transaction fee. The transaction fee is charged any time a transaction takes place at a foreign bank, even if it is handled in US Dollars with no conversion, as takes place at the Irish bank. The Oceania and Regent funds are deposited as US Dollars and are NOT converted into Euros or any other currency.

[hondorner]

...At a guess, O does this so that THEY don't have to pay currency conversion fees on their receipts. Much if not most of their finance charges and operating costs are incurred in Europe and thus are paid in Euros (the Irish currency is also the Euro). I'd guess O saves a couple million a year in currency conversion charges, at the cost of irritating a sizeable number of guests. Apparently O feels the savings are worth the substantial cost in customer goodwill...

I agree with your last sentence...obviously the savings are great enough for Oceania to rebate the 3%, thus restoring customer goodwill, and still come out ahead. However, the savings most likely don't come from currency conversion costs, because according to your scenario, the funds are converted at some point before the bills are paid, and Oceania would have to bear that cost.

 

Personally, I believe the savings are at least partially in the fees charged to merchants by a processing bank to process credit card statements. American Express in particular charges as much as 4% or more for processing the receipts. The Irish bank may rebate these and other fees just to get the cruise lines money flow through their bank.

[hondorner]

I like the idea of it being printed on your invoice that Oceania uses a foreign bank, with the suggestion that you check with your credit card company to see if a foreign bank fee will be charged.

That's the best idea I have heard yet. It would cost the cruise line nothing to print it, would save them the rebates, improve customer goodwill if only by eliminating the confusion and put the onus on the customer if they failed to read their invoice.

 

At the very least, those travel agents with so little experience with Oceania that they have never heard of this should read the invoice and tip off their client. I agree that not everyone is as anal as me and reads all the fine print.

[lmarmors]

For our upcoming July cruise, our first on O, we paid the deposit and five additional partial payments on Am. Exp. There has been no extra fees charged.

 

We are planning to make a final payment, when due in April, with our B of A

Visa card... should we be concerned about extra charges?:confused:

[RickeyCruz5]

For our upcoming July cruise, our first on O, we paid the deposit and five additional partial payments on Am. Exp. There has been no extra fees charged.

 

We are planning to make a final payment, when due in April, with our B of A

Visa card... should we be concerned about extra charges?:confused:

 

The best way for you to find the answer to your question is to contact B of A and ask them prior to making the charge to avoid any surprises when you receive the statement after you've made the charge.

 

RickeyCruz5

[PaulMCO]

For our upcoming July cruise, our first on O, we paid the deposit and five additional partial payments on Am. Exp. There has been no extra fees charged.

 

We are planning to make a final payment, when due in April, with our B of A

Visa card... should we be concerned about extra charges?:confused:

 

The best way is to ask your TA or if you booked direct ask OCEANIA.

Oceania randomly uses the Irish bank (it does not do this 100% of the time). It is Oceania dependent, not the card. As previously stated only Capitol One guarantees no foreign transaction fees (it is in there terms).

Up until recently Amex had none, but I was charge recently 2.7% for a foreign USD transaction. Again it depends if Oceania makes a foreign USD transaction/processing with their Irish Bank

[susiesan]

:eek:You never purchase wine with dinner or any other time during the cruise? Forget some incidental and have to purchase at the onboard boutique? I guess my whole point is if indeed you did not spend the $900.00 onboard credit which wasn't a gift from your TA, you would get a refund of the balance at the end of the cruise. If an OBC from your TA isn't used up you do not get a refund.

 

No, I do not purchase wine with dinner. I prefer cocktails before made with the booze I bring on board. When I have had an onboard credit from a TA, it has never been much as I don't ever sail in the expensive cabins, always the the cheapest inside I can get. So I can use up the OBC easily at the bar. I've never had to buy an incidental I forgot from the ship boutique. One time, my husband had to see the ship doctor on our only other O cruise in 2006, but I think he paid for it with a credit card then got reimbursed from our insurance.

 

I would never find myself in the position of having a $900 OBC as I would never use a CC that incurs this exchange fee as I know that this is something that only O does to some of their customers.

[A Knitter]

No, I do not purchase wine with dinner. I prefer cocktails before made with the booze I bring on board. When I have had an onboard credit from a TA, it has never been much as I don't ever sail in the expensive cabins, always the the cheapest inside I can get. So I can use up the OBC easily at the bar. I've never had to buy an incidental I forgot from the ship boutique. One time, my husband had to see the ship doctor on our only other O cruise in 2006, but I think he paid for it with a credit card then got reimbursed from our insurance.

 

I would never find myself in the position of having a $900 OBC as I would never use a CC that incurs this exchange fee as I know that this is something that only O does to some of their customers.

 

Wow. I guess I have been lucky. My TA gave $800 OBC and paid gratuities and I enjoyed many Spa days and Martinis on my Amazon trip. Never incurred fees using my card thanks to members of CC. Hope to be just as lucky on my cruise in November.

[susiesan]

Wow. I guess I have been lucky. My TA gave $800 OBC and paid gratuities and I enjoyed many Spa days and Martinis on my Amazon trip. Never incurred fees using my card thanks to members of CC. Hope to be just as lucky on my cruise in November.

 

An Amazon itinerary is far more expensive than a Caribbean one, even in the same class of cabin. That's probably why you got such a big OBC from your TA. I took my TA's OBC in the form of an upfront discount on her commission reflected in what I paid for the cruise which is how I prefer to get any credits. But I do have prepaid gratuities.

[A Knitter]

An Amazon itinerary is far more expensive than a Caribbean one, even in the same class of cabin. That's probably why you got such a big OBC from your TA. I took my TA's OBC in the form of an upfront discount on her commission reflected in what I paid for the cruise which is how I prefer to get any credits. But I do have prepaid gratuities.

 

My TA of 15 years has always Been generous with OBC whether 16 or 30 day cruise Whatever works for you and your enjoyment. It works for me. :))

[juli2020]

American Express does not charge a foreign transactio9n fee as discussed here. AmEx charges a 2.7% Currency Conversion Fee, not a transaction fee. The transaction fee is charged any time a transaction takes place at a foreign bank, even if it is handled in US Dollars with no conversion, as takes place at the Irish bank. The Oceania and Regent funds are deposited as US Dollars and are NOT converted into Euros or any other currency.

 

Card issuers tack on a foreign transaction fee (once called a currency conversion fee). According to a July 2010 study by Pew Trusts, more than 90 percent of bank cards and almost 60 percent of credit union cards tack on a foreign transaction fee.

American Express charges a 2.7 percent foreign transaction fee for most of its cards, but in December, the card issuer announced that it was eliminating foreign transaction fees for users of its Platinum Cards and (Black)Centurion Cards.

[hondorner]

Card issuers tack on a foreign transaction fee (once called a currency conversion fee). According to a July 2010 study by Pew Trusts, more than 90 percent of bank cards and almost 60 percent of credit union cards tack on a foreign transaction fee.

American Express charges a 2.7 percent foreign transaction fee for most of its cards, but in December, the card issuer announced that it was eliminating foreign transaction fees for users of its Platinum Cards and (Black)Centurion Cards.

Once again. the Foreign transaction fee charged by Visa, MasterCard and Discover is not the same thing as the so-called American Express Foreign transaction fee.

 

Visa started it all with a 1% fee charged on all transactions through a foreign bank, regardless of whether the was a currency exchange or not. this fee is charged to all member banks, including CitiBank, Schwab and others who do not pass it through, choosing to absorb the fee instead. The fee is entirely bogus -- in this era of global computerized bank exchanges it does not cost any American bank even one penny more to process a credit card transaction in a foreign country.

 

The fee charged by most banks varies from the 1% charged by Visa and passed through to customers to as much as 5% with the bank tacking on an additional 4% to Visa's 1%, just because they can. The preponderant rate is 3%; 1% to Visa and 2% to the member bank.

 

Never ones to miss a chance to tack on worthless fees, MasterCard and Discover jumped on the bandwagon.

 

American Express has never charged that foreign transaction fee. They have always charged a 2.7% foreign currency exchange fee, only on transactions which involve an exchange of currency whether by a foreign bank or not, which they recently announced would be dropped on certain AmEx cards like the Platinum card.

 

Therefore, there has never been any type of surcharge on Oceania or Regent transactions using AmEx because the transactions are done in US Dollars, regardless of the fact that it's an Irish bank. This applies to all AmEx cards, even the one I use issued by Bank of America under license from AmEx.

 

I get accelerated rewards miles on my AmEx which is why I use it. I already have too many credit cards but if I was starting out today I would choose the Gold Visa from Schwab Bank, which does not pass the foreign transaction fee on to customers let alone add their own to it, and pays 2% cash back, which is better than miles on most cards. I do use the Schwab Bank Debit Card, which rebates all ATM fees charged for transactions anywhere in the world.

 

These are not guesses or speculations on my part but the results of intense research, including that which you cited.

[wripro]

What if I went into Saks fifth Avenue or Target for that matter, charged $500 worth of merchandise and when I received my bill found a 3% foreign bank surcharge. Whose fault would that be? I was quoted a price by Saks, charged that amount and that is what I expect to pay. Why is it different for Oceania? They quote a price, charge that amount to your credit card and then a fee is tacked on because they choose to use a bank which gives them preferential rates. We should be warned in advance that this is a possibility depending on which card one uses.

[Rickey 88]

What if I went into Saks fifth Avenue or Target for that matter, charged $500 worth of merchandise and when I received my bill found a 3% foreign bank surcharge. Whose fault would that be? I was quoted a price by Saks, charged that amount and that is what I expect to pay. Why is it different for Oceania? They quote a price, charge that amount to your credit card and then a fee is tacked on because they choose to use a bank which gives them preferential rates. We should be warned in advance that this is a possibility depending on which card one uses.

 

You're comparing apples with oranges - and creating more confusion....

 

Saks and Target (to use your examples) never would have a surcharge on your bill, unless you were in another country, charging your $500 in a foreign currency! Then your statement from your bank would reflect a FOREIGN CONVERSION CHARGE, not a "Transaction Charge" which is what this thread is all about!

 

The "Transaction Charge" which is discussed here, is a charge made by YOUR BANK on your statement, for processing a charge which is eventually sent on electronically to a foreign country, but still remains a U.S. Dollar charge!! There is no cost at all in routing payments like this, it is done daily, and is only a change in routing codes.

 

It is another example of banks dreaming up additional "charges" which will help increase their bottom line. (Another example - a $39.00 charge for being over ten days late in your payment)

 

Printing a disclaimer on brochures or elsewhere may help - but I'd guess it would go unnoticed and not read by most. I'd also suggest to you that this disclaimer wouldn't be correct, unless Oceania were to identify each bank by name!

 

And to those who have suggested that "O" change banks - why should they? They made their decision on where and how to bank for good business reasons, and are entitled to do business where and how they please.

 

The true answer to this situation is to get Congress involved - write your Senator and Congressman and ask that they start conducting hearings on those banks who levy charges on the public for no good reason!!

 

(Now can we all end this thread?) :(

[vtbobby]

We use a combination of a UAL Mileage Plus/Chase Visa, Amex, and a local bank MC for travel transactions in Dollars...and a ING/Brussels Visa for transactions in Euros. Since we have paid Oceania over $20k in the last 6 months on a variety of cards, I was concerned enough by the mis-information in this thread (not you Don or Rickey) to look at my statements for the past few years.

 

I am happy to report that we have not been charged a 'foreign transaction fee' by anyone! :D We have paid a 'foreign conversion fee' on some ATM/debit withdrawals for Kroner and Turkish Lira...but I've always known about that.

 

It's your credit cards/banks folks...not Oceania. I second the vote to close this subject.

 

Off to Bangkok and Nautica!:cool:

[Mura]

I'm not going to close this thread just yet because I have another topic/question -- which perhaps is no longer the case, but it's pertinent to "foreign conversion" charges.

 

When we did the Iceland cruise in June 2006 there were warnings that you should not agree to a foreign establishment converting your charge to dollars because that way you got charged with the 2-3% (or whatever) in each direction. I remember an Irish restaurant offering to do us this favor and we declined.

 

Is this still the case?

 

Like many others, we've never had a problem with the Oceania charge (okay, I agree it's not a charge levied by Oceania but it IS related to Oceania) on payments made with our credit cards. But we use our credit cards carefully. And MC is just not a card we use these days whenever we are dealing with foreign currencies or cruises.

 

Looking for information, not confrontation!:)

[Paulchili]

Mura,

I think this applies to foreign residents (outside of US) when they register their CC with Oceania at the time of check in, since their home bank may not use US $$. Oceania wants to know whether to charge their final bill in US $ or convert it to their own currency (at Oceania's rate). If you are a US resident,you will not be asked this question or offered this option (at least I never was).

Is this what you mean?

[Mura]

No, Paul, this concerned U.S. residents but NOT Oceania charges. It's when you are paying by credit card for a purchase outside of the U.S.

 

And as I said, maybe it's no longer a question. We have just played it safe ever since.

 

I wish I could refer you to the warnings I saw but it's too long ago.

[Benita]

I thought I had it straight, now I am confused again. I thought I had to use the Capital One card to avoid the foreign bank fee - I understand the difference between foreign bank and foreign conversion fee. The Citibank Advantage card used to only charge the conversion fee, but then added the bank fee more recently, so I thought it was only the Capital One card and some brokerage house cards that did not have the fee. The Capital One card does not have a good mileage program - we usually used the Starwood Amex, but that had the fee the last time that I checked. Does anybody have any suggestions? It is not worth the fee to me to get the extra miles, but it sure would be nice to use a card other than Capital One.

[Mura]

Benita, what you might do is simply call your existing credit cards and ask THEM. Master Cards pretty much uniformly seem to charge these fees, Visas not so much.

 

But rather than asking us here, checking with the company is best.

 

We do tend to use our Capitalone Visa when we are traveling. I also have an HSBC Premier M/C that doesn't charge these fees, but you have to have a lot of money on deposit to qualify for the card.

 

Likewise, the Amex Platinum that won't be charging fees in the future is probably expensive. (At least HSBC doesn't charge an annual fee, but you do have to have a lot of money on deposit.)

 

Capitalone seems to me to be the best option these days if you don't have extra cash to leave in a bank!

 

But I am NOT an expert! Do don't take my word for it, check it out with your credit card companies. At least that way you will know exactly what you're in for if you use the card in foreign currencies.