Paying for a cruise

[Ljr51]

I read advice online to pay via credit card instead of taking the cash payment with discount route. The reason was that credit cards have certain protections and insurance features in case something happens and the cruise is cancelled or postponed. I did purchase separate trip insurance from Allianz. Does it still make more sense to pay via credit card vs cash? Payment in full is due soon and the cruise is 4 months away.

[crystalspin]

10 minutes ago, Ljr51 said:

I read advice online to pay via credit card instead of taking the cash payment with discount route. The reason was that credit cards have certain protections and insurance features in case something happens and the cruise is cancelled or postponed. I did purchase separate trip insurance from Allianz. Does it still make more sense to pay via credit card vs cash? Payment in full is due soon and the cruise is 4 months away.

Welcome to Cruise Critic!

 

"Trip insurance" means different things to different people. Depending on the credit card, the coverage will be different (you need to read the benefits file for yours). We use Chase Sapphire Reserve, which is a pricy card with well-thought-of coverage, and we still will be buying a MEDICAL travel plan from GeoBlue (that is probably similar to your Allianz, but again, check the fine print). We use the Reserve card for ALL payments, as it pays back in proportion to how much of the total that was charged. This includes NOT paying any percent that was paid by 10% off AARP or other gift cards, even if the gift cards were paid for with the card!

 

FWIW, I also bought Holland America's Cancel For Any Reason plan for our upcoming cruise, because the most likely reason for a cancellation is the brittle health of my family members, and I wasn't sure enough about the Reserve card's coverage in the case of changing pre-existing conditions for family. (New conditions are a covered reason to cancel.)

 

Losing your cruise fare will not bankrupt you, medical can.  

[leaveitallbehind]

Am I missing something? I am not familiar, at least with the mass market cruise lines, with a "cash with discount" option.  All payments are via a credit card, and with no payment option discount.  Where would you go, and with whom, would you make a cash payment? How did you make your deposit payment?  Are you referring to a big box TA? If so, any payment option discount would be through them and not the cruise line.

 

As to credit card benefits, as @crystalspin mentioned, different cards offer different membership benefits, but third party insurance is always a good idea to investigate.

Edited November 25, 2023 by leaveitallbehind

[GeezerCouple]

39 minutes ago, Ljr51 said:

I read advice online to pay via credit card instead of taking the cash payment with discount route. The reason was that credit cards have certain protections and insurance features in case something happens and the cruise is cancelled or postponed. I did purchase separate trip insurance from Allianz. Does it still make more sense to pay via credit card vs cash? Payment in full is due soon and the cruise is 4 months away.

 

Welcome to CruiseCritic!

 

Where are you located?

Many of these money or insurance issues vary by country.

 

I don't hear much about getting a cash discount in general.  Is that from a specific cruiseline, or a travel agent?

NOTE:  Mentioning names of travel agents is NOT allowed on CC, so if that's part of it, just mention "travel agent" or "TA".

 

GC

[Ljr51]

It's Viking. It was specifically mentioned in the article I found online that recommended not taking that offer of a discount for paying via bank account. I am in New York, USA.

[GeezerCouple]

7 minutes ago, Ljr51 said:

It's Viking. It was specifically mentioned in the article I found online that recommended not taking that offer of a discount for paying via bank account. I am in New York, USA.

 

Could you share more information about that "offer"?

It's impossible for us to know what you are referring to, how it supposedly works, or if it even applies...

 

GC

[Ljr51]

Well it was from Viking itself. We were told that if we pay via ACH from our bank we get a discount, I think it is around 3%. We've paid via bank transfer for other things, specifically for new kitchen cabinets. That company insisted on payment via bank debit, not credit card. This is the same thing. It is from Viking itself--cash payment for a discount. It must be on their website, or else it was just conveyed from the rep that made the booking for us.

[leaveitallbehind]

5 minutes ago, Ljr51 said:

Well it was from Viking itself. We were told that if we pay via ACH from our bank we get a discount, I think it is around 3%. We've paid via bank transfer for other things, specifically for new kitchen cabinets. That company insisted on payment via bank debit, not credit card. This is the same thing. It is from Viking itself--cash payment for a discount. It must be on their website, or else it was just conveyed from the rep that made the booking for us.

Well that at least clarifies how the cash payment would be made and it is, at least in this instance, unique to Viking, as I am not familiar with that type of payment being an option with any of the mass market cruise lines.  ACH is typically a safe method of a cash transaction, if you are OK with having your account accessed directly.  I would check for more clarification with the TA you used for the booking to see if it is a good option for you. Personal preference, I guess.

[LHT28]

I would  see what people say on the Viking forum

https://boards.cruisecritic.com/forum/689-viking-ocean/

 I would never pay cash to a cruise line  but  that is just me

[Shmoo here]

26 minutes ago, leaveitallbehind said:

and it is, at least in this instance, unique to Viking

If that's where you provide a routing number from your bank account to pay for the cruise, then there was at least one other cruise line that did that - Vantage (yeah, I know, look what happened with that).  We could get a varied discount (lower percentage the closer to cruise) if we used that method, OR we could use a credit card with no discount.

[Mary229]

That is how Viking operates.  I like the protections of my credit card and dislike sharing my banking information with strangers.  That said, Viking seems to have a good reputation 

[leaveitallbehind]

29 minutes ago, Mary229 said:

That is how Viking operates.  I like the protections of my credit card and dislike sharing my banking information with strangers.  That said, Viking seems to have a good reputation 

I think they do.  It apparently is just their option to avoid the credit card transaction fees.  But it still relies on a third party involvement (ACH) who must have some skin in the game as well.  I, as you, prefer not to have my accounts accessed directly by a third party - even when secure - and would still opt for the credit card payment method.

Edited November 25, 2023 by leaveitallbehind

[Ljr51]

I went to the Viking thread and people there mention the 3% discount for cash. I guess it's a Viking-only thing. I am leaning toward paying via credit card --it just seems to offer some extra protection. And I can get cash back on the Chase Sapphire Preferred card, so that provides some level of discount even if it's not 3%. This is the first time we've chosen and booked a cruise on our own (once years ago, we booked the same cruise friends were on, so that did not involve any research on our part--our only cruise experience so far). I'm discovering it's very complicated! 

[Mary229]

1 minute ago, Ljr51 said:

I went to the Viking thread and people there mention the 3% discount for cash. I guess it's a Viking-only thing. I am leaning toward paying via credit card --it just seems to offer some extra protection. And I can get cash back on the Chase Sapphire Preferred card, so that provides some level of discount even if it's not 3%. This is the first time we've chosen and booked a cruise on our own (once years ago, we booked the same cruise friends were on, so that did not involve any research on our part--our only cruise experience so far). I'm discovering it's very complicated! 

Chase Sapphire offers very good insurance with their card.  At my age it equals about 10% value on cruises less than $20000 plus you get around 2% back in points. 

[GeezerCouple]

6 minutes ago, Mary229 said:

That is how Viking operates.  I like the protections of my credit card and dislike sharing my banking information with strangers.  That said, Viking seems to have a good reputation 

 

This ^^

 

It's the protection of a credit card, and *especially* when there are more than average chances that there might be a problem, and a cruise way in the future......  "Things could happen...."

 

The few times we pay cash, we write a check (or have online banking right the check).

When the bank does it, our account information never shows up; the bank uses an intermediary account/routing.

 

And Viking has a good reputation... until maybe someday it doesn't.

Who knows what the future of cruising will be... what if Covid V10 arrives...?

Or whatever else *might* happen far in the future.  (Well, we usually book our cruises close to 2 years in advance.)

 

This is not a case where one worries "Is this a scam?"

[If we are ever purchasing that odd item that might be a bit sketchy, then we try to use American Express, which tends to be most card-holder friendly.  Right... we try to avoid "sketchy things", but occasionally, one just isn't sure.....]

 

As for travel insurance, please browse through the travel insurance section of CC:

https://boards.cruisecritic.com/forum/499-cruisetravel-insurance/

 

Also pay attention to any restrictions in ANY policy ("the fine print"), although there's likely to be more of that with charge card insurance, vs. 3rd party insurance.

Double check about "pre-existing conditions":  when are they excluded, when are they *not* excluded? 😉 

GC

 

 

 

[thinfool]

Methinks Viking is offering the 3% as an incentive to avoid their Credit Card processing fees, which is often in the 3-5% range.

There are reports that using a credit card in some foreign countries will result in a surcharge in the 3-5% range.

Still, 3% is 3%, but I agree with most on this posting....I like the protections that using a Credit Card offers....and gasp in horror at the idea of using an ATM card.

[Roz]

There are river cruise companies that offer the discount for cash option, and it usually has to be paid upfront. 

 

River cruises tend to be more expensive than ocean cruises, and I don't like having thousands of dollars of cash tied up like that.  Plus I prefer the protection a credit card provides. 

[jsn55]

3 hours ago, leaveitallbehind said:

Am I missing something? I am not familiar, at least with the mass market cruise lines, with a "cash with discount" option.  All payments are via a credit card, and with no payment option discount.  Where would you go, and with whom, would you make a cash payment? How did you make your deposit payment?  Are you referring to a big box TA? If so, any payment option discount would be through them and not the cruise line.

 

As to credit card benefits, as @crystalspin mentioned, different cards offer different membership benefits, but third party insurance is always a good idea to investigate.

To me, 'cash payment' means a debit card or a check.  

 

I am very pleased to announce that Chase Sapphire Reserve has just sent me a whopping check to cover a cancelled river cruise last spring due to my husband's illness.  The included travel insurance has always been a big perk in my mind.  The claim took far too long, but they finally approved it after I pitched a mild fit on the phone and sent an email a couple of weeks ago.  I have had complete faith in Chase since they invented the CSR in 2016, and I am relieved that faith is justified.  CSR points are an incredible value when booking travel, and Chase' Customer Service is so much easier to deal with than AmEx, I use my CSR for almost everything now.  

[leaveitallbehind]

16 minutes ago, jsn55 said:

To me, 'cash payment' means a debit card or a check.   

I understand, but in this case the OP confirmed that it would be an ACH transaction, which is a direct cash payment from your bank account to the provider by way of a third party conveyor. Not processed via a debit card or a check. So in that manner it is truly a cash payment. The discount offered is likely an offset to the credit card processing fees paid by the provider.  (Viking, in this case).

Edited November 26, 2023 by leaveitallbehind

[cruisemom42]

When advising others about payment and insurance related to various credit cards, it cannot be stressed often enough that the individual involved needs to completely understand all of the terms of use, requirements, exclusions, etc. Travel insurance policies in general — including those associated with credit cards — are a bit like Swiss cheese…

 

There was a long thread on one of the cruise line boards recently from someone who has to cancel a cruise due to a condition she thought would be covered by her card’s insurance. It wasn’t covered due to certain requirements — e.g., it was a one-way (Trans-Atlantic) cruise and her card required that the ENTIRE round-trip had to be purchased using the card. She had used a different card to pay for the airfare from her home to the cruise starting point, so the claim for reimbursement was denied.

 

The recent uncertainties of travel (and various cruise itinerary changes) due to the situation in Israel have also exposed some misunderstandings and ignorance of what things insurance covers and what the cruise lines are required to do in case of major itinerary changes (basically nothing).

 

The bottom line: having a flawed understanding of coverage will get you nowhere. Make sure you understand ALL the terms of coverage.

[Roz]

When I mentioned cash payment in my previous post, I didn't literally mean cash.  The cruise lines that offer the discount require you to do an ACH from your checking account. 

 

I will never sail Viking river or Viking ocean due to their onerous final payment policies and policies toward solo passengers. 

[ldubs]

16 hours ago, Roz said:

There are river cruise companies that offer the discount for cash option, and it usually has to be paid upfront. 

 

River cruises tend to be more expensive than ocean cruises, and I don't like having thousands of dollars of cash tied up like that.  Plus I prefer the protection a credit card provides. 

 

Unless not paying off the card, I don't follow how one method ties up dollars any more than the other.  

 

To the OP's question, as others have already pointed out, I think it all comes down to weighing the discount against the credit card perks.  And of course, there is the convenience of using a credit card.  I personally would have no worries about providing a routing number if I wanted to get the cash discount.  

[Roz]

To get the cash discount you have to pay the entire fare upfront.  That's what I  meant by tying up cash.

 

If passengers want to do that it's their prerogative.  I prefer to wait until a few months before the cruise to make final payment.  I'm obviously in the minority, given the popularity of Viking's cruises. 

[Ljr51]

We booked at the end of October and they said we needed to pay in full by Nov. 28. 

[Toofarfromthesea]

It's probably not an issue with Viking, but many cruise lines are in a precarious financial state.  And a lot of us are old enough to remember when there were a spate of airline bankruptcies and people who paid with a credit card giot the charge removed, while people who paid by check went into the pool of unsecured creditors and had to wait a long time for their pennies on the dollar refunds.