Preferred Currency Conversion - which to choose

[I Love Carbs]

Just completed our on-line check-in for our July cruise out of Baltimore. With the falling Canadian dollar, would like some advice from fellow Canadians on which preferred Currency conversion option to use to our best advantage. I chose Option B.. but wouldn't mind getting some advice from fellow CC members. Thanks!

 

Please select your preferred currency conversion from the options below:

·AI choose to pay my onboard changes in the currency of my card. I chooseto use Royal Caribbean International's currency conversion program. This currencyconversion transaction is bason on wholesale exchange rates collected fromBloomberg plus 3 percent international currency conversion fee. My Choice tohave charges billed in the currency of my card is final. I accept that theexchange rate used will be the rate in effect at the time the amounts arecharged to my card.

 

·BI choose to have my credit card issuer convert my onboard changes to thecurrency of my card in lieu of participating in the Royal Caribbean Internationalcurrency conversion program

I

[Saab4444]

Always go with B as with A Royal makes some money extra and you pay for it! Bank fees under B are lower and exchange rate is better.

 

 

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[MrYellowDuck]

For us the cost of having our bank do the conversion is cheaper. This is true in both absolute terms for the spread plus my bank's rewards scheme offers double points for foreign currency purchases.

[Ourusualbeach]

Just completed our on-line check-in for our July cruise out of Baltimore. With the falling Canadian dollar, would like some advice from fellow Canadians on which preferred Currency conversion option to use to our best advantage. I chose Option B.. but wouldn't mind getting some advice from fellow CC members. Thanks!

 

Please select your preferred currency conversion from the options below:

·AI choose to pay my onboard changes in the currency of my card. I chooseto use Royal Caribbean International's currency conversion program. This currencyconversion transaction is bason on wholesale exchange rates collected fromBloomberg plus 3 percent international currency conversion fee. My Choice tohave charges billed in the currency of my card is final. I accept that theexchange rate used will be the rate in effect at the time the amounts arecharged to my card.

 

·BI choose to have my credit card issuer convert my onboard changes to thecurrency of my card in lieu of participating in the Royal Caribbean Internationalcurrency conversion program

I

 

Agree with others, use option B.

 

We now use a Canadian bank issued US$ credit card which is also another option. In this case we do not select either option A or B.

[DrewFoundLander]

We've tried both and B has always been cheaper.

[MATHA531]

Agree with others, use option B.

 

We now use a Canadian bank issued US$ credit card which is also another option. In this case we do not select either option A or B.

 

I do understand that some Canadian banks offer US$ accounts which are particularly useful I imagine for snow birds but ultimately these accounts have to be funded or paid off. At some point, you do have to convert currency, don't you? Just for example, you pay off the US credit card account with checks from your US checking account but how does money get into that account if say your pension or whatever is paid in CAD? And that in essence is the conversion rate and that is totally at the discretion of the bank, isn't it?

 

I do know mc/visa use the interbank rate to convert currency and add on a 1% loading fee. Is it the general policy of Canadian banks to pass along that 1% and/or add another 2% the way some American banks do.

 

Option A is the dreaded dynamic currency conversion a growing problem for international travelers. Option B is let your bank do the conversion using mc/visa rules with or without a loading fee. In general, B is better.

[Ourusualbeach]

I do understand that some Canadian banks offer US$ accounts which are particularly useful I imagine for snow birds but ultimately these accounts have to be funded or paid off. At some point, you do have to convert currency, don't you? Just for example, you pay off the US credit card account with checks from your US checking account but how does money get into that account if say your pension or whatever is paid in CAD? And that in essence is the conversion rate and that is totally at the discretion of the bank, isn't it?

 

I do know mc/visa use the interbank rate to convert currency and add on a 1% loading fee. Is it the general policy of Canadian banks to pass along that 1% and/or add another 2% the way some American banks do.

 

Option A is the dreaded dynamic currency conversion a growing problem for international travelers. Option B is let your bank do the conversion using mc/visa rules with or without a loading fee. In general, B is better.

 

Yes, at some point you have to exchange the currency. I also have a US$ account which I fund throughout the year which I use to pay off the US$ visa. This allows me to purchase US$ when it's convenient for me and at the price I like as opposed to being stuck with the rate of the day when the charges get posted to the credit card.

[ExpatBride]

I live in Denmark and have a US (USD) card, a UK card (GBP), and a Danish card (DKK) so this comes up often especially when we travel to the Eurozone or beyond.

 

It's always best to pay in the local currency.... option B.

[SG65CB]

For option B most credit cards charge a 3% foreign transaction fee, but some credit cards market a feature where they do not charge a fee.

 

Not sure if specific brands can be mentioned here but search online for "credit card no foreign transaction fee".

[Clarea]

For option B most credit cards charge a 3% foreign transaction fee, but some credit cards market a feature where they do not charge a fee.

 

Not sure if specific brands can be mentioned here but search online for "credit card no foreign transaction fee".

Yes, you can mention specific brands of credit cards. We use Capital One, which has no foreign transaction fee.

[Geoff H]

Halifax Clarity is perfect for this which give a near perfect exchange rate😉

 

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[besberry]

Option B no argument. On my Oasis TA I chose option B, but when the bill arrived they'd used option A. I went to guest services and walked away with $15, which shows how much they load their charges!

[datolim]

Yes, you can mention specific brands of credit cards. We use Capital One, which has no foreign transaction fee.

 

Bob, I just want to double check with you.

 

If you have to pay the 3% bank CC charges like me and many others would you still advice me to let the CC do the conversion into my local currency and not let RC do the conversion.

[Clarea]

Option B no argument. On my Oasis TA I chose option B, but when the bill arrived they'd used option A. I went to guest services and walked away with $15, which shows how much they load their charges!

They seem to make this "mistake" quite often. It's almost like you have to go down to Guest Services on a daily basis and confirm the selection.

[datolim]

Bob seems to have miss this one. Could somebody else that this.

[Ourusualbeach]

Bob, I just want to double check with you.

 

If you have to pay the 3% bank CC charges like me and many others would you still advice me to let the CC do the conversion into my local currency and not let RC do the conversion.

Royals fee is more than the 3% that your bank will charge.

[MATHA531]

Bob, I just want to double check with you.

 

If you have to pay the 3% bank CC charges like me and many others would you still advice me to let the CC do the conversion into my local currency and not let RC do the conversion.

 

I can't answer for Canada but I suspect it works much the same way it does in the USA.

 

As DCC spread through the travelling world, one of the claimed advantages of DCC is to avoid the 3% currency conversion fee most of the banks in the USA (again forgive me as I don't know the way Canadian banks work) have historically loaded onto foreign currency conversions...1% by visa or mc and 2% of greedy profit by them as they do not do the currency exchange, the networks do. With DCC eating into their profits, the banks converted the currency exchange fee into a foreign transaction fee. Thusly even if you decide how wonderful it is for a merchant to bill you in your currency, if the transaction takes place through a foreign bank, you get nailed for the 3% fee as a foreign transaction. But in the USA, at least for this, competition is a wonderful thing and it is not really all that difficult here to find a credit card that not only doesn't add the near criminal extra 2% on top of visa/mc, but many banks eat the 1% fee of visa/mc and offer no foreign transaction fees cards. But it's a case by case situation so one thing you always have to do when signing up for a credit card is to verify just what, if any, foreign transaction fee it charges and whether it is a foreign transaction fee or a currency conversion fee.

[Biker19]

. But in the USA, at least for this, competition is a wonderful thing and it is not really all that difficult here to find a credit card that not only doesn't add the near criminal extra 2% on top of visa/mc, but many banks eat the 1% fee of visa/mc and offer no foreign transaction fees cards.

Did I miss someone almost getting killed with this fee?:rolleyes:

[MATHA531]

Did I miss someone almost getting killed with this fee?:rolleyes:

 

No you didn't but it's an almost criminal fee because the banks play no role in currency conversions. Whatever risk there is falls on mc/visa. This is an obnoxious fee charged by banks because they can get away with it; not because they are performing any kind of service to earn it.

[moopetguy]

Option B is definitely best if you don't have a U.S. Dollar credit card. Tangerine's MasterCard, which used to have a low foreign currency transaction fee of 1.5%, has increased that to 2.5%. Scotiabank's Momentum MasterCard used to have no additional fee (grandfathered from what used to be the Sears/Chase MasterCard) but that's now 2.5% as well. There may be others but the one card immediately coming to mind that still doesn't have any foreign currency transaction fee is the Chase Amazon.ca Rewards Visa.

[nelblu]

Just completed our on-line check-in for our July cruise out of Baltimore. With the falling Canadian dollar, would like some advice from fellow Canadians on which preferred Currency conversion option to use to our best advantage. I chose Option B.. but wouldn't mind getting some advice from fellow CC members. Thanks!

 

Please select your preferred currency conversion from the options below:

·AI choose to pay my onboard changes in the currency of my card. I chooseto use Royal Caribbean International's currency conversion program. This currencyconversion transaction is bason on wholesale exchange rates collected fromBloomberg plus 3 percent international currency conversion fee. My Choice tohave charges billed in the currency of my card is final. I accept that theexchange rate used will be the rate in effect at the time the amounts arecharged to my card.

 

·BI choose to have my credit card issuer convert my onboard changes to thecurrency of my card in lieu of participating in the Royal Caribbean Internationalcurrency conversion program

I

I'm not Canadian and I would opt for "b". The best recommendation from travel or business magazines is to have your card issuer convert whether you traveling on ship or in a foreign country.

[squadron]

Agree with others, use option B.

 

We now use a Canadian bank issued US$ credit card which is also another option. In this case we do not select either option A or B.

 

 

I also have a free American credit card and keep some money in US dollars in the AM dollar acct that goes with it (TD) . I just say "cash acct" and at end if I owe anything I just put it on my America credit card . No Fees.

[I Love Carbs]

Always go with B as with A Royal makes some money extra and you pay for it! Bank fees under B are lower and exchange rate is better.

 

 

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Wow... thanks to everyone for their advice. Great discussion! I will stick with Option B.