Shipboard Account

[rocker57]

I know that there are other threads about the shipboard accounts, and that the recommendation is to let your bank do the conversation. But under the shipboard account on the Princess site reads:

 

Why is Preferred Currency a benefit for you?

• We use a fair market based currency exchange rate, but you will be refunded if our rate results in a higher charge to your card. *Please see detailed terms for refund conditions.
  
• You will know exactly what is charged to your card in your home currency before you leave (it is printed on your final folio).
  
• When you get your card statement from your bank there will be no surprises or other fees and costs for currency conversion as the amount on your final folio will be the same as on your card statement.
  

So when they say they use a "fair market" based currency rate, that it is higher than what your bank rate would be? But then it says that if their rate is a higher charge, then you can get a refund. So is this a change in their policy, or just another way for us to be charged higher? I had it into using their rates, but now not too sure. Have several months, but just checking it out now. Would be nice if the canadian $ gets a surge, but I can't see that happening :)

 

thanks!

[caribill]

• We use a fair market based currency exchange rate, but you will be refunded if our rate results in a higher charge to your card. *Please see detailed terms for refund conditions.
  

 

The details include: "This procedure is standard and a fee is charged by your bank. Princess Cruise Lines, Ltd. offers the same service through our conversion agent, Global Card Services, Inc. using wholesale exchange rates collected from Bloomberg plus a 3 percent international currency conversion fee"

 

I do not know how Canadian banks work, but in the USA many banks have a 3% charge added to all foreign transactions even if the charge is in US$. So it is possible that your Canadian bank might have such a fee for foreign transaction even though the billing will be in Canadian $. If that is the case, you would be paying a 6% extra fee (3% when Princess does it and 3% when your bank does it.)

 

Of course credit cards are available that have no foreign transaction or currency exchange fee. In that case, having Princess do the conversion means you are paying their conversion fee unnecessarily.

 

The details do not indicate how you would get any refund from Princess "if our rate results in a higher charge to your card." Somehow I guess it would be a hassle involving possibly many phone calls/e-mails and a long wait.

 

In my opinion, better to let your bank do the conversion in the first place.

 

(And get a credit card with no foreign transaction/foreign exchange fees.)

Edited May 31, 2014 by caribill

[toberman]

Don't think there's a CC company anywhere that won't charge the exchange fee.... But there are some that don't charge an 'admin' fee on top. Canadian banks do charge an admin fee of about 2.5% on top of the exchange fee, and as was stated, Princess also has an admin fee on top of that.

 

For Canadians the only CC company that I've found who do not charge the admin fee is Chase Canada MasterCard - available thru Sears (or possibly direct with Chase). No admin fees - just the going exchange rate the day of processing.

 

We always use the Sears MasterCard for our onboard account, and charge in US$ That way we're only paying to going exchange rate (which you have to anyway) with no up-charges.

[caribill]

Don't think there's a CC company anywhere that won't charge the exchange fee

Maybe not for Canadian residents, but in the USA credit cards without foreign transactions/exchange fees and with no administrative fees include:

o CapitalOne Visa and Mastercard and debit card (the later good in ATM machines when needing foreign currencies)

o Princess Visa card

o A number of airline affinity cards, but these usually have an annual fee

Edited May 31, 2014 by caribill

[rocker57]

Thanks very much for your reply, I think I will change it and let my bank charge